Friday, February 23, 2024

Kenya secures Sh.9.5 billion loan from AfDB for emergency food production

President William Ruto’s administration has signed a loan agreement worth Sh9.5 billion with the African Development Bank.

The funds, designated for the Kenya Emergency Food Production Facility (AEFPF-K), aim to enhance agricultural productivity and improve food security in the country.

Our goal is to mitigate the impacts of drought and the Russia-Ukraine war and support farmers and the government with the necessary resources. Let’s work together to achieve a more resilient and food-secure future for Kenya

Director Nnenna Nwabufo.

Agricultural boost

This partnership is expected to support the government in achieving its agricultural production goals.

“We plan to increase production by 1.5 million metric tonnes of cereals and oilseeds between 2023-2025, distribute 65,000 MT of fertilizers and 17,000 MT of seeds, and institutionalize the e-voucher system,” said African Development Bank Director Nnenna Nwabufo.

“Our goal is to mitigate the impacts of drought and the Russia-Ukraine war and support farmers and the government with the necessary resources. Let’s work together to achieve a more resilient and food-secure future for Kenya,” she furthered.

The National Treasury said the loan will support local firms in importing fertilizers to enhance the agricultural sector’s capacity for increased food production.

It will further benefit small-scale farmers by providing certified seeds and affordable fertilizers as well as various stakeholders along the production value chain for wheat, maize, rice among others.

Debt Situation

In light of the acquisition of this loan, concerns have been raised about Kenya’s debt situation.

During a committee hearing, Treasury CS Njuguna Ndung’u faced scrutiny from MPs who highlighted the government’s challenges in paying salaries on time.

However, the Treasury said they are committed to finding a better explanation to convince lawmakers to adopt a new strategy for addressing the country’s debt situation.

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