NAIROBI, Kenya Dec 17 – Agriculture Cabinet Secretary Mutahi Kagwe has warned that donor funded agriculture projects must be treated with the same discipline as public debt, insisting that many so-called donor facilities are in fact loans that must deliver measurable impact for farmers, and the country in totality.
Speaking at the Joint National Project Steering Committee (NPSC) meeting for WorldBank financed projects in the agricultural sector, Kagwe said Kenya must move away from “loose arrangements” and instead implement well-structured, citizen-owned and driven projects anchored in sound policy and based on 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 pointed to the recently approved Livestock Value Chain Support Project (LVSP), which aims to boost dairy productivity, cut post-harvest losses and raise farmer incomes through improved genetics, feeds and fodder, expanded cold chain infrastructure and stronge organisations.
However, Kagwe raised concern over procurement choices appearing in project plans, including items such as ice cream makers, milk cans and motorbikes, questioning their sourcing and relevance.
“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.
Kagwe also urged the Treasury to work closely with line ministries before negotiating external financing, warning that facilities agreed without technical input risk misalignment and waste.
The Governors Agriculture Committee Chair, Governor Kenneth Lusaka echoed the call for strict compliance, cautioning that some counties risk being dropped 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,” the Bungoma Governor said.
Governor Benjamin Cheboi (Baringo) backed the push for accountability, calling for prudent use of donor resources to ensure projects translate into tangible benefits at the grassroots.
Discussions at the meeting will shape annual work plans and budgets for the 2025/2026 financial year and set the direction for how Kenya deploys external financing to strengthen agriculture value chains.
