- Kenya signs Ksh16.4B deal with IFAD to launch INReMP project
- Funds will support climate action and rural development across 10 counties
- The loan carries a 1.41% interest rate with a five-year grace period
- The project aims to address deforestation, climate shocks, and poor rural incomes
- Supports Ruto’s environmental mission of restoring degraded land and planting 15 billion trees
Kenya has bagged a concessional loan worth $126.8 million (Ksh16.4 billion) from the International Fund for Agricultural Development (IFAD) to roll out a fresh environmental and rural transformation project.
The signing took place on Monday, with Treasury CS John Mbadi and IFAD Regional Director Sara Mbago-Bhunu sealing the deal in Nairobi.
“This initiative targets degraded land, strengthens grassroots groups, and promotes eco-friendly ventures,” the National Treasury noted.
The new program, called the Integrated Natural Resources Management Programme (INReMP), will run in 10 counties, including Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.
The focus is on conserving the environment, reversing land degradation, and boosting income for rural households through clean, sustainable practices.
Kenya secured this funding under blended terms, which are more affordable than commercial loans.
The loan terms include: 1.41% interest1.39% service charge5-year grace period25-year repayment window
This deal gives the government more breathing space to implement the project without aggressive debt pressure.
IFAD, a UN agency with a global mission to fight rural poverty, already runs programs in Kenya covering farming, livestock, fish farming, and rural financing.
This new project contributes to a growing list of collaborations between Kenya and IFAD, aimed at enhancing rural livelihoods while addressing climate-related threats.
The INReMP deal fits into President Ruto’s long-term green plan, which includes:
Planting 15 billion trees, reclaiming 5 million hectares of ruined land, securing fair climate financing for Africa
Since 2022, Ruto has been vocal about environmental action, both locally and on the international stage, pushing for more support and fair partnerships.
With this loan, Kenya is not just planting trees — it’s investing in rural resilience, protecting livelihoods, and taking real steps toward climate justice.
