Kenya's commitment to sustainable development and the well-being of its rural communities has received a significant boost with the securing of a KSh 16.4 billion concessional loan from the International Fund for Agricultural Development (IFAD). This substantial financing is earmarked for the ambitious Integrated Natural Resources Management Programme (INReMP), a new initiative designed to address the urgent challenges of environmental degradation, climate change impacts, and dwindling livelihoods in rural Kenya.
The financing agreement was formally signed on Monday, June 23, 2025, by National Treasury Cabinet Secretary John Mbadi and IFAD Regional Director Sara Mbago-Bhunu. Speaking at the signing ceremony, CS Mbadi underscored the multi-faceted benefits of the program, articulating its vision beyond mere environmental conservation. “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 stated, emphasizing the interconnectedness of ecological health and human prosperity.
The terms of the loan reflect IFAD's mission to support developing countries with favorable financial instruments. It is offered on blend terms, featuring a highly competitive interest rate of 1.41% and a service charge of 1.39%. This concessional nature, coupled with a generous 25-year repayment period and a five-year grace period, provides Kenya with the fiscal space needed to implement INReMP effectively without placing undue strain on its national budget. Such favorable terms are crucial for long-term development projects that require sustained investment.
The INReMP is set to be implemented across ten strategically selected counties: Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori. These regions, often at the forefront of climate vulnerability and natural resource depletion, stand to benefit immensely from the program's targeted interventions. The initiative will focus on three core pillars: sustainable resource management, strengthening rural institutions, and improving household incomes through environmentally friendly livelihood activities. This holistic approach recognizes that sustainable development requires empowering local communities with both the knowledge and the means to thrive in harmony with their environment.
This new deal significantly expands IFAD's already robust portfolio in Kenya. The fund currently supports four other ongoing projects in the country, spanning critical areas such as agriculture, aquaculture, livestock development, and rural financial inclusion. IFAD, as a specialized agency of the United Nations, is dedicated to eradicating poverty and hunger in rural areas of developing countries, a mission that perfectly aligns with Kenya's national development goals.
IFAD Regional Director Sara Mbago-Bhunu reaffirmed the organization's steadfast commitment to supporting Kenya's efforts. Her remarks highlighted IFAD's broader objective of tackling rural poverty, promoting food security, and building climate resilience – all critical areas for Kenya's sustainable future. This continued partnership with IFAD is a testament to Kenya's proactive stance on climate change and its dedication to lifting its rural populations out of poverty.
The INReMP represents a vital step forward in Kenya's journey towards achieving sustainable development goals. By investing in natural resource management and bolstering rural economies, the program promises not only to mitigate the adverse effects of climate change but also to create resilient and prosperous communities for generations to come. This collaboration underscores the power of international partnerships in driving impactful change at the grassroots level.
