National Treasury Cabinet Secretary John Mbadi during the signing of the concessional loan from the International Fund for Agricultural Development (IFAD) at Treasury Building, June 23, 2025. /TREASURY
Kenya has secured a $126.8 million (approximately Sh16.48 billion) concessional loan from the International Fund for Agricultural Development (IFAD) to support a new programme aimed at improving rural livelihoods and protecting natural resources.
The loan will fund the Integrated Natural Resources Management Programme (INReMP), which seeks to address critical challenges facing rural communities, including environmental degradation, climate change, and declining sources of income.
The financing agreement was signed on Monday at the National Treasury Building in Nairobi.
National Treasury Cabinet Secretary John Mbadi signed the agreement on behalf of the Kenyan government, while IFAD Regional Director Sara Mbago-Bhunu signed on behalf of the fund.
The signing was witnessed by Environment, Climate Change and Forestry Cabinet Secretary Deborah Mlongo Barasa and Principal Secretaries Paul Bitok (Agriculture), Raymond Omollo (Interior), and Festus Ng’eno (Environment).
Mbadi said the programme is a comprehensive response to the growing threats posed by climate change and the deterioration of natural resources in Kenya’s rural areas.
“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 said.
Government officials led by Cabinet Secretary John Mbadi during the signing of the concessional loan from the International Fund for Agricultural Development (IFAD) at Treasury Building, June 23, 2025. /TREASURY
The loan is offered on blend terms, with a 1.41 per cent interest rate, a 1.39 per cent service charge, a five-year grace period, and a 25-year repayment period.
INReMP will be rolled out in 10 counties: Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
The programme will focus on sustainable natural resource management, strengthening of rural institutions, and enhancing household incomes through environmentally sustainable livelihoods.
Mbago-Bhunu reaffirmed IFAD’s continued commitment to supporting Kenya in its efforts to reduce rural poverty, promote food security, and strengthen resilience against climate change.
“This partnership with Kenya reflects IFAD’s broader goal of ensuring that rural populations have the tools and support needed to thrive in the face of environmental and economic pressures,” she said.
The agreement adds to IFAD’s current portfolio in Kenya, which includes four ongoing projects supporting agriculture, aquaculture, livestock development, and rural financial inclusion.
