Agriculture and Livestock Cabinet Secretary Mutahi Kagwe has cautioned that donor-funded agricultural projects should be managed with the same rigor as public debt, noting that many so-called donor facilities are, in reality, loans that must deliver measurable benefits to farmers and the country at large.
Speaking during the Joint National Project Steering Committee (NPSC) meeting for World Bank–financed agricultural projects, Kagwe emphasized the need for Kenya to abandon “loose arrangements” in favor of well-structured, citizen-driven initiatives 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 tangible results for farmers and for the country,” Kagwe said.
He cited the recently approved Livestock Value Chain Support Project (LVSP), which seeks to enhance dairy productivity, reduce post-harvest losses, and increase farmer incomes through improved genetics, better feeds and fodder, expanded cold-chain infrastructure, and stronger farmer organizations.
However, the Cabinet Secretary expressed concern over certain procurement items listed in project plans—such as ice cream makers, milk cans, and motorbikes—questioning both their relevance and sourcing.
“We cannot be procuring basic items from countries like Poland through tied-aid arrangements when they can be sourced locally or better aligned with our actual needs.
Procurement must make economic sense and support Kenyan industry,” he said.
Kagwe further urged the National Treasury and Economic Planning to work closely with line ministries before concluding external financing agreements, warning that facilities negotiated without adequate technical input risk misalignment, inefficiency, and waste.
