Kenya, AFDB sign 62.3 mln USD deal to boost agriculture
05 February 2016, 20:52
Nairobi - Kenya and the African
Development Bank (AfDB) on Thursday signed a 62.3 million U.S. dollar agreement
aimed at boosting Kenya's agricultural sector.
Cabinet Secretary in the National Treasury Henry Rotich told
journalists in Nairobi that the financial support consists of a loan of 39.5
million dollars and a grant of 22.8 million dollars.
"The funds will be utilized under the Small Scale
Irrigation and Value Addition Project (SIVAP) that is being implemented in 11
counties in the arid and semi-arid areas," Rotich said.
The CS said Kenya's agricultural productivity is constrained
as a result of over dependence on rain fed agriculture.
Rotich said the SIVAP will be the first project to benefit
from the AfDB window of commercial loans after Kenya attained eligibility.
He said the funds will be used to develop 12 irrigation
schemes covering 2,905 hectares and an additional 300 hectares under 60 micro
irrigation schemes, adding that the project aims at improving food security as
well as increasing household income in the target areas.
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AfDB Regional Director for the East Africa Resource Centre
Gabriel Negatu said the funds will be used to boost Kenya's future food supply.
Negatu said the average rural household incomes of the
beneficiaries are also expected to increase as a result of the funding.
SIVAP is AfDB's third funded project in Kenya supporting
irrigation after the Small Scale Horticulture Development Project (SHDP) and
the Drought Resilience and Sustainable Livelihood Program.
Cabinet Secretary for Agriculture, Livestock and Fisheries
Willy Bett said the SIVAP will be implemented over a period of six years from
2016 to 2021.
"When fully implemented, it will benefit approximately
10,000 households in the project areas," Bett said.
The UN's Food and Agriculture Organization will provide
technical support to SIVAP in order to ensure that the envisaged outcomes are