Donor funds must deliver impact to citizens, says Kagwe

Agriculture Cabinet Secretary Mutahi Kagwe. [Boniface Okendo, Standard]

Agriculture Cabinet Secretary, Mutahi Kagwe has warned that donor-funded agriculture projects must be treated with the same strength as public debt, because they are loans that must deliver measurable impact for farmers and the country.

Kagwe said that 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 made the remarks yesterday during a Joint National Project Steering Committee (NPSC) meeting for World Bank financed projects in the agricultural sector.

During the meeting, the CS made reference to the recently approved Livestock Value Chain Support Project (LVSP), which aims at boosting boost dairy productivity, cut post-harvest losses and raise farmer incomes through improved genetics, feeds and fodder, expanded cold-chain infrastructure and stronger farmer organisations.

But he was concerned 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 has also urged the National Treasury to work closely with line ministries before negotiating external financing, warning that facilities agreed without technical input risk misalignment and waste.

Council of Governors Agriculture Committee Chair, Governor Ken Lusaka of Bungoma also called 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,” Lusaka said.

On his part, Baringo Governor Benjamin Cheboi 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 are expected to shape annual work plans and budgets for the Financial Year 2025/2026 and set the direction for how Kenya deploys external financing to strengthen agriculture value chains.

Meanwhile, the Ministry has said that Kericho will host the National Farmers Awards and Celebrations on Friday, which will be implemented in partnership with county governments and bring together farmers, agribusiness leaders, innovators, policymakers and development partners.

The awards will recognize every link that keeps agriculture moving from soil to shelf, with honours spanning individual farmers, seed growers, Agro-dealers, Micro, Small and Medium Enterprises (MSMEs) millers, manufacturers and county value chains.