Nairobi — Agriculture Cabinet Secretary Mutahi Kagwe has warned that donor-funded agriculture projects must be treated with the same discipline as public debt, saying many so-called donor facilities are loans that must deliver measurable impact for farmers and the wider economy.
Speaking at the Joint National Project Steering Committee (NPSC) meeting for World Bank-financed agricultural projects, Kagwe said Kenya must move away from "loose arrangements" and instead implement well-structured, citizen-owned projects anchored in sound policy and aligned with national priorities.
"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," Kagwe said.
He cited the recently approved Livestock Value Chain Support Project (LVSP), which aims to boost dairy productivity, reduce post-harvest losses and raise farmer incomes through improved genetics, feeds and fodder, expanded cold-chain infrastructure and stronger farmer organisations.
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However, Kagwe raised concerns over some procurement items appearing in project plans, including ice cream makers, milk cans and motorbikes, questioning both their relevance and sourcing.
"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," he said.
The CS also urged the National Treasury and Economic Planning to work more closely with line ministries before negotiating external financing, warning that facilities agreed without adequate technical input risk misalignment and waste.
Council of Governors' Agriculture Committee Chair and Bungoma Governor Kenneth Lusaka echoed the call for strict compliance, cautioning that counties could be dropped from projects if they fail to meet agreed performance benchmarks.
"Let us change the lives of farmers, but let us also observe compliance. Counties must perform, or they will be discontinued," Lusaka said.
Baringo Governor Benjamin Cheboi backed the push for accountability, calling for prudent use of donor resources to ensure projects translate into tangible grassroots benefits.
The discussions will inform annual work plans and budgets for the 2025/2026 financial year and guide how Kenya deploys external financing to strengthen agricultural value chains. Also present were Garissa Governor Nathif J. Adam and State Department for Cooperatives Principal Secretary Patrick Kilemi.
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