Kenya gets Sh16.4 billion loan to tackle rural poverty, climate woes

The funds will support the rollout of the Integrated Natural Resources Management Programme (INReMP) in Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
Kenya has secured a Sh16.4 billion concessional loan from the International Fund for Agricultural Development (IFAD) to fund a new programme aimed at tackling environmental degradation, building climate resilience, and improving rural livelihoods across 10 counties.
The funding agreement was signed on Monday, June 23, in Nairobi by Treasury Cabinet Secretary John Mbadi and IFAD Regional Director Sara Mbago-Bhunu.
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The loan, equivalent to $126.8 million (Sh16.4 billion), 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.
The funds will support the rollout of the Integrated Natural Resources Management Programme (INReMP) in Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
The programme is designed to address the worsening effects of climate change and unsustainable land use in 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,” Mbadi said.
The initiative will promote climate-friendly economic activities, boost access to food and water, and strengthen institutional support for sustainable development in the selected counties.
Environment Cabinet Secretary Deborah Barasa, who witnessed the signing, said the programme aligns with existing climate projects and will enhance them through new partnerships and a stronger emphasis on sustainable value chains.
“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 noted.
The Ministry of Environment said the programme will improve rural governance, expand policy support, and help communities access long-term income sources that are both climate-resilient and nature-friendly.
“We are proud to partner with the Kenyan government to tackle rural poverty, promote food security, and build climate resilience,” Mbago-Bhunu added.
The Treasury described the loan deal as a major milestone in the government’s efforts to promote inclusive development and sustainable use of natural resources in rural communities.
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