The Kenyan government is seeking private sector investment to finance 61% of the Ksh.598 billion National Irrigation Sector Investment Plan (NISIP) 2025–2035. The plan aims to expand irrigation and strengthen Kenya's food security. Water, Sanitation and Irrigation Cabinet Secretary Eric Muriithi stated that public financing alone cannot meet the cost of implementing the 10-year plan.
The NISIP targets the expansion of irrigation to more than 1.5 million acres. Muriithi called on commercial banks, development partners, equipment suppliers, and agribusinesses to invest in the sector. He made the call during the Eastern and Southern Africa Private Sector Forum on Irrigation in Nairobi.
The forum brought together representatives from 39 governments and private sector players to identify barriers and risks limiting private investment in irrigation. Muriithi emphasized that the NISIP is an instrument for rallying the whole sector, including government, donors, commercial banks, equipment suppliers, and agribusinesses.
The government is working with the World Bank and International Finance Corporation (IFC) to implement the Kenya Resilient Irrigation for a Sustainable Economy (K-RISE) programme. World Bank Eastern and Southern Africa Division Director Qimiao Fan stated that the programme will provide financial solutions to address challenges facing irrigation investment.
K-RISE will use three financing instruments to attract private capital. These include the Results-Based Finance Facility, which will provide rebates and grants to irrigation equipment dealers based on verified sales and installations. The Risk Sharing Facility will provide first-loss and partial credit guarantees to banks, microfinance institutions, and SACCOs offering irrigation-specific loans.
A Patient Capital Facility will support suppliers and financiers requiring longer repayment periods for irrigation investments. The government has identified 10 irrigation schemes for a pilot programme covering about 14,819 acres and 52,115 farmers. These schemes produce various crops, including rice, maize, horticultural crops, vegetables, pulses, potatoes, onions, and avocados.
The government also plans to strengthen farmer cooperatives and establish direct links with processors, exporters, and other buyers to improve market access and returns for farmers. This move aims to enhance the livelihoods of farmers and contribute to Kenya's food security.
Key points
- The Kenyan government seeks private sector investment to finance 61% of the Ksh.598 billion National Irrigation Sector Investment Plan (NISIP) 2025–2035.
- The NISIP targets the expansion of irrigation to more than 1.5 million acres.
- The government is working with the World Bank and International Finance Corporation (IFC) to implement the Kenya Resilient Irrigation for a Sustainable Economy (K-RISE) programme.
