Kenya gets Ksh.16.39B loan for environmental conservation and communities

In a major step to improve rural life and care for the environment, Kenya has signed a new concessional loan deal worth $126.8 million (about Ksh.16.39 billion) with the International Fund for Agricultural Development (IFAD).

The Goal: Protect Nature and Boost Livelihoods

The new loan will help fund a special program called the Integrated Natural Resources Management Programme (INReMP). This program is designed to tackle serious problems such as:

Environmental degradation
The effects of climate change
Declining income sources in rural areas

Treasury Cabinet Secretary John Mbadi explained that the loan will support efforts to manage natural resources better while improving how people in rural areas make a living.

Loan Terms: Friendly and Affordable

This loan comes with blend terms, meaning it is affordable and designed to help without putting too much financial pressure on the country. The terms include:

1.41% interest rate
1.39% service charge
25 years to repay the loan
5-year grace period before repayment starts

These terms give the government enough time to use the funds effectively and plan for repayment.

Deal Officially Signed

On Monday, CS John Mbadi officially signed the agreement with Sara Mbago-Bhunu, IFAD’s Regional Director.

This marks the beginning of a new partnership that aims to transform rural areas and protect natural resources for future generations.

Where the Program Will Be Implemented

The program will cover ten counties in Kenya, mostly located in the western region. These counties are:

Elgeyo Marakwet
West Pokot
Trans Nzoia
Uasin Gishu
Nandi
Kakamega
Kericho
Kisumu
Homa Bay
Migori

The choice of these counties shows a clear focus on areas that face high environmental risk and where communities depend heavily on farming and natural resources.

Main Focus Areas of the Program

According to the National Treasury, INReMP will concentrate on three key areas:

Sustainable use of natural resources – using land, forests, and water in ways that protect them for future use
Strengthening rural institutions – helping local organizations and groups work better
Increasing household incomes – supporting eco-friendly income-generating activities such as farming, tree planting, and water conservation projects

IFAD’s Role in Kenya

IFAD is part of the United Nations and specializes in helping rural communities in developing countries escape poverty and hunger.

This new loan adds to IFAD’s existing support in Kenya, where it is already funding other four active projects in:

Agriculture
Aquaculture (fish farming)
Livestock development
Access to rural financial services

Ruto’s Vision for a Greener Kenya

This loan also aligns with President William Ruto’s green agenda, which he launched after taking office in 2022.

His administration has focused strongly on environmental protection and climate change action. So far, some of his major goals include:

Planting 15 billion trees across the country
Restoring 5.1 million hectares of land lost to deforestation
Conserving forests, rivers, and wildlife
Leading Africa in climate diplomacy
Calling for fair and equal climate partnerships with Western countries

In Conclusion

This new $126.8 million loan from IFAD is more than just money. It is a strategic investment in Kenya’s rural future, climate resilience, and natural resource protection.

If used well, the program will create jobs, protect the environment, and improve the quality of life for millions of Kenyans living in rural areas.