Kenya has signed a $126.8 million (about Ksh.16.39 billion) concessional loan from the International Fund for Agricultural Development (IFAD) to finance a new program seeking to improve rural livelihoods and protect natural resources.
According to Treasury Cabinet Secretary John Mbadi, the Integrated Natural Resources Management Programme (INReMP) seeks to address environmental degradation, climate change, and dwindling livelihoods in rural Kenya.
The loan is on blend terms with a 1.41 percent interest rate, 1.39 percent service charge, a 25-year repayment period, and a five-year grace period.
Mbadi signed the agreement on Monday with IFAD’s regional director, Sara Mbago-Bhunu.The National Treasury said INReMP will be implemented in ten counties; Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
“[It] will focus on sustainable resource management, strengthening rural institutions, and improving household incomes through environmentally friendly livelihood activities,” it said in a statement.
IFAD, a specialised agency of the United Nations, works to address poverty and hunger in rural areas of developing countries.
The latest deal adds to the financial institution’s current portfolio in Kenya, which includes four ongoing projects across agriculture, aquaculture, livestock, and rural financial inclusion.
President William Ruto has since 2022 led an environmental conservation agenda for his government, focusing on tree planting, forest protection, river and wildlife conservation, and climate diplomacy.
It comprises an ambitious drive to plant 15 billion trees and restore 5.1 million hectares of deforested land, as well as mobilization of climate finance for the continent and calls for equitable partnerships with the West.
By Dennis Musau of Citizen Digital.
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