Nairobi: The Cabinet Secretary (CS) for Agriculture and Livestock Development, Mutahi Kagwe, has issued a stern warning that donor-funded agriculture projects in Kenya must be managed with the same level of discipline as public debt. He emphasized that many donor facilities are actually loans and need to demonstrate a measurable impact on farmers and the country as a whole.
According to Kenya News Agency, Kagwe, speaking at the Joint National Project Steering Committee (NPSC) meeting for World Bank-financed projects in the agricultural sector, highlighted the need for Kenya to shift away from ‘loose arrangements’. He advocated for well-structured, citizen-owned projects that are rooted in sound policy and aligned with national priorities.
Kagwe stated, “Donor financing is not free money. These are loans, and we must be honest about that. Every facility must align with our agenda and produce results for farmers and this country.” He specifically referenced the recently approved Livestock Value Chain Support Project (LVSP), which aims to enhance dairy productivity, reduce post-harvest losses, and increase farmer incomes through various improvements.
Concerns were raised by Kagwe regarding procurement choices in project plans, such as ice cream makers, milk cans, and motorbikes. He questioned their sourcing and relevance, stating, “We cannot be buying basic items from countries like Poland through ‘tied-aid’ facilities when these can be sourced locally or better aligned to our needs. Procurement must make economic sense and support Kenyan industry.”
Kagwe also urged the National Treasury and Economic Planning Ministry to collaborate closely with line ministries before negotiating external financing. He warned that facilities agreed upon without technical input could lead to misalignment and waste.
In response, Governor Kenneth Makelo Lusaka, Chair of the Council of Governors-Kenya Agriculture Committee, supported the call for strict compliance. He cautioned that some counties might be excluded from projects if they fail to meet performance benchmarks. “Let us change the lives of farmers, but let us also observe compliance. Counties must perform, or they will be discontinued,” Lusaka asserted.
Simultaneously, Baringo Governor Benjamin Cheboi called for accountability in the use of donor resources, emphasizing the need for prudent management to ensure that projects result in tangible benefits at the grassroots level.
