Kenya secures Sh16.4bn loan to improve rural livelihoods » Capital News

NAIROBI, Kenya, Jun 23 – Kenya has secured a Sh16.4 billion concessional loan from the International Fund for Agricultural Development (IFAD) to finance a new programme aimed at improving rural livelihoods and protecting natural resources.

The financing agreement for the Integrated Natural Resources Management Programme (INReMP) was signed Monday by Treasury Cabinet Secretary John Mbadi and IFAD Regional Director Sara Mbago-Bhunu.

Speaking at the event, Mbadi said the programme would address the urgent challenges of environmental degradation, climate change, and dwindling livelihoods in rural Kenya.

The loan is on blend terms with a 1.41% interest rate, 1.39% service charge, a 25-year repayment period, and a five-year grace period.

“This programme is not just about conserving the environment—it’s about securing the livelihoods of our rural communities, restoring their natural resources, and building resilience for future generations,” he stated.

INReMP will be implemented in ten counties—Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori—and will focus on sustainable resource management, strengthening rural institutions, and improving household incomes through environmentally friendly livelihood activities.

The deal adds to IFAD’s current portfolio in Kenya, which includes four ongoing projects supporting agriculture, aquaculture, livestock, and rural financial inclusion.

Mbago-Bhunu reaffirmed IFAD’s commitment to supporting Kenya’s efforts to tackle rural poverty, promote food security, and build climate resilience.