Kenya has struck a major financial deal with the International Fund for Agricultural Development (IFAD), securing a $126.8 million (approximately Ksh.16.39 billion) concessional loan to fund a new rural development and environmental sustainability program.
The initiative, known as the Integrated Natural Resources Management Programme (INReMP), aims to tackle multiple challenges facing rural communities climate change, environmental degradation, and economic vulnerability. Treasury Cabinet Secretary John Mbadi signed the agreement in Nairobi on Monday alongside IFAD’s regional director, Sara Mbago-Bhunu.
“This program will empower communities to manage their natural resources sustainably while also improving livelihoods,” said Mbadi during the signing ceremony.
The loan, which is offered under blend terms, comes with favorable conditions: a 1.41% interest rate, 1.39% service charge, a 25-year repayment timeline, and a five-year grace period.
According to the National Treasury, the INReMP project will roll out across 10 counties Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori. The focus will be on three key areas: sustainable management of natural resources, strengthening of rural institutions, and promotion of eco-friendly income-generating activities for households.
IFAD, a United Nations agency dedicated to eradicating rural poverty and hunger, already has a strong footprint in Kenya. This latest agreement builds on an existing portfolio of projects supporting agriculture, livestock, aquaculture, and financial inclusion in remote areas.
The loan also reinforces President William Ruto’s broader environmental and climate agenda, which has been central to his administration since 2022. His government has championed aggressive conservation policies including a campaign to plant 15 billion trees, restore over 5 million hectares of deforested land, and position Kenya as a key player in global climate diplomacy.
By aligning with IFAD’s mission, the INReMP deal marks another step in Kenya’s efforts to blend development with sustainability ensuring that rural communities are not left behind in the fight against climate change.
