CS Kagwe warns donor-funded agriculture projects are not free money, must benefit farmers

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has warned that donor-funded agricultural projects should be managed with the same diligence as public debt, stressing that many so-called donor grants are, in fact, loans that must deliver tangible benefits to both farmers and the country.

Speaking at the Joint National Project Steering Committee meeting for World Bank-supported agricultural programmes in Kilifi on Tuesday, Kagwe emphasised the importance of structured, citizen-focused projects anchored in national priorities rather than “loose arrangements.”

“Donor financing is not free money. These are loans, and we must be honest about that. Every facility must align with our agenda and produce results for farmers and this country,” he said.

Kagwe said the recently approved Livestock Value Chain Support Project (LVSP), aimed at boosting dairy production, reducing post-harvest losses, and improving farmer incomes. The project will focus on enhanced genetics, better feeds and fodder, expanded cold-chain infrastructure, and stronger farmer organisations.

Questioned certain procurement plans

However, he questioned certain procurement plans, citing items such as ice cream makers, milk cans, and motorbikes, and expressed concerns about their sourcing and relevance.

“We cannot be buying basic items from countries like Poland through ‘tied-aid’ facilities, when these can be sourced locally or better aligned to our needs. Procurement must make economic sense and support the Kenyan industry,” he said.

Kagwe also urged the National Treasury to work closely with line ministries before negotiating external financing, warning that deals struck without technical input risk misalignment and waste.

Meet performance benchmarks

Echoing the CS’s stance, Council of Governors Agriculture Committee Chair, Governor Ken Lusaka, cautioned that counties failing to meet performance benchmarks could be excluded from projects.

“Let us change the lives of farmers, but let us also observe compliance. Counties must perform, or they will be discontinued,” Lusaka said.

Baringo Governor Benjamin Cheboi added that accountability and prudent use of donor funds are vital to ensuring that projects translate into real benefits for communities.

The discussions at the meeting will guide the annual work plans and budgets for the 2025/2026 financial year and shape the strategy for deploying external financing to strengthen Kenya’s agricultural value chains.

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• CS Kagwe warns donor-funded agriculture projects are not free money
• must benefit farmers