Boost for Ruto’s govt as it secures Ksh16.4B loan
The Kenyan government has signed a Ksh16.484 billion ($126.8 million) concessional loan agreement with the International Fund for Agricultural Development (IFAD) to fund a programme aimed at protecting natural resources and strengthening rural livelihoods.
The loan, signed on Monday, June 23, 2025, by Treasury Cabinet Secretary John Mbadi and IFAD Regional Director Sara Mbago-Bhunu in Nairobi, will be repaid over 25 years, with a 1.41 per cent interest rate, a 1.39 per cent service charge, and a five-year grace period.
Support for rural counties
The funding will go towards the implementation of the Integrated Natural Resources Management Programme (INReMP), which will be rolled out in Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
“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,” said Treasury CS John Mbadi during the signing.
The programme aims to tackle ongoing challenges such as environmental degradation and the impact of climate change on rural households. Officials said it will promote climate-friendly income-generating activities and improve long-term food and water security.
Boost for climate action
Environment Cabinet Secretary Deborah Barasa, who witnessed the signing, noted that the programme will complement ongoing climate resilience projects across the country.
“It will scale up the successful approaches under existing IFAD projects in Kenya, with a stronger emphasis on nature-based value chains and enterprises, while taking on a public-private partnership implementation model,” Barasa said.
According to the Ministry of Environment, the programme will also enhance institutional capacity, strengthen rural policy support, and improve access to sustainable livelihoods in the target counties.
IFAD Regional Director Sara Mbago-Bhunu reaffirmed the institution’s support for Kenya’s rural transformation goals.
“We are proud to partner with the Kenyan government to tackle rural poverty, promote food security, and build climate resilience,” she said.
The Treasury described the agreement as a major step in advancing inclusive development and sustainable resource use across Kenya’s rural communities.
