Kenya Takes Ksh.7.5 Billion AfDB Loan To Boost Food Security

By Kepha Muiruri For Citizen Digital

Kenya has secured a Ksh.7.5 billion ($63 million) loan from the Africa Development Bank (AfDB) to boost its food security status.

Proceeds from the credit facility are expected to be deployed in boosting cereals and oil seeds production by over 1.5 million metric tonnes over the next two years.

The loan is part of AfDB’s Africa Emergency Production Facility valued at Ksh.177.5 billion ($1.5 billion) which a continental wide initiative to avert the looming food crisis, escalated by the Russia-Ukraine war.

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The Ministry of Agriculture is expected to use the facility to provide affordable fertilizer and seeds to farmers beginning with the months of October to December which cover the short-rains period.

Additionally, the loan is expected to provide trade finance guarantees and rope in the private sector to support the fertilizer program by ensuring the availability of supplies.

“The government is looking into ways and means of addressing the cost of unga to bring it down so that consumers can afford it, stated Agriculture Cabinet Secretary Peter Munya.

An estimated 650,000 farmers are expected to be direct beneficiaries of the loan while 2.8 million people are expected to be positively impacted by the facility.