Kenya has signed a $126.8 million concessional loan from the International Fund for Agricultural Development (IFAD) to finance a new programme aimed at tackling environmental degradation, building climate resilience, and improving rural livelihoods across 10 counties.

The loan, equivalent to about KES16.39 billion, will be repaid over 25 years. It comes with a 1.41 percent interest rate, 1.39 percent service charge and a five-year grace period.

According to Treasury Cabinet Secretary John Mbadi, the Integrated Natural Resources Management Programme (INReMP) seeks to improve rural livelihoods and protect natural resources. It has been designed to address the worsening effects of climate change and unsustainable land use in rural areas.

“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,” CS Mbadi said.

The funds will support the rollout of the Integrated Natural Resources Management Programme (INReMP) in Elgeyo Marakwet, West Pokot, Trans Nzoia, Uasin Gishu, Nandi, Kakamega, Kericho, Kisumu, Homa Bay, and Migori.

“[It] will focus on sustainable resource management, strengthening rural institutions, and improving household incomes through environmentally friendly livelihood activities,” he added.

Environment Cabinet Secretary Deborah Barasa, who witnessed the signing, said the programme will improve rural governance, expand policy support, and help communities access long-term income sources that are both climate-resilient and nature-friendly. She further noted that the programme aligns with existing climate projects and will enhance them through new partnerships and a stronger emphasis on sustainable value chains.

“It will scale up the successful approaches under existing IFAD projects in Kenya, with a stronger emphasis on nature-based value chains and enterprises, while taking on a public-private partnership implementation model,” Barasa noted.

The initiative will promote climate-friendly economic activities, boost access to food and water, and strengthen institutional support for sustainable development in the selected counties.

“We are proud to partner with the Kenyan government to tackle rural poverty, promote food security, and build climate resilience,” Mbago-Bhunu, IFAD’s Regional Director added.

IFAD is a specialised agency of the United Nations that works to address poverty and hunger in rural areas of developing countries.

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