The European Commission said the loan will focus on Kenya’s small-scale agriculture and be used to provide finance, training, and market integration.
Kenya gets €104 million loan from the EU
The European Commission in Brussels signed a funding agreement with the Kenyan government worth €104 million to help small-scale agriculture projects in the country, in a statement released on Tuesday.
It said the financing will focus on supporting Kenya’s small-scale agriculture in areas such as access to finance, training, and market integration.
The EU Commissioner for International Cooperation and Development, Neven Mimica signed the agreement with President Uhuru Kenyatta during the EU-African, Caribbean and Pacific (ACP) Joint Parliamentary Assembly in Nairobi on Monday.
First loan of its kind from EU to Kenya
This is the first EU-funded project and it aims to provide medium-sized water and sanitation facilities for 400,000 people in arid and semi-arid lands of Kenya through the climate-proof water supply programme. The project cost is €20 million and employ and benefit women. It will also make ensure systems are in place to ensure the sustainability of the infrastructure.
A second €50 million project will provide better access to finance, training and market integration to small–scale farmers, letting graduate from subsistence farming.
The EU promises to also assign €34 million to a programme targeting 12 counties in the country for legal empowerment and aid delivery in Kenya. The project will tackle how the marginalization of communities can be linked to their exposure to crime, including radicalization.
In total these projects are worth €104 million. They will have a tangible impact on Kenyan small-scale farmers and Kenyans generally according to Mimica.
Farmers risk losing their crops or cattle during drought in dry parts of rural Kenya and the climate-proof water supply programme as well as the support to market integration of farmers will help solve these problems