Agriculture Cabinet Secretary Mutahi Kagwe has warned that donor-funded agriculture projects must be managed with the same discipline as public debt, stressing that most donor financing comes in the form of loans that must deliver tangible returns to farmers and the wider economy.
Speaking at a Joint National Project Steering Committee (NPSC) meeting for World Bank–financed agricultural projects, Kagwe cautioned against what he described as “loose arrangements” in the design and implementation of donor-funded programmes.
He said Kenya must move away from fragmented and poorly aligned projects and instead pursue well-structured initiatives anchored in sound policy and national priorities.
“Donor financing is not free money. These are loans, and we must be honest about that,” Kagwe said. “Every facility must align with our agenda and produce results for farmers and this country.”
The Cabinet Secretary emphasized that externally financed projects should be citizen-owned, farmer-driven and focused on measurable impact, including increased productivity, higher incomes and stronger value chains.
He noted that failure to enforce discipline in donor-funded programmes risks burdening the country with debt without delivering commensurate benefits at the grassroots.
Kagwe cited the recently approved Livestock Value Chain Support Project (LVSP) as an example of the kind of focused investment Kenya should pursue.
The project aims to boost dairy productivity, reduce post-harvest losses and increase farmer incomes through improved livestock genetics, better feeds and fodder, expanded cold-chain infrastructure and stronger farmer organisations.
However, he raised concern over some procurement items appearing in project plans, questioning their relevance and sourcing.
“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,” Kagwe said. “Procurement must make economic sense and support Kenyan industry.”
He also urged the National Treasury and Economic Planning to work more closely with line ministries before negotiating external financing agreements. According to Kagwe, facilities agreed upon without adequate technical input from implementing ministries risk being misaligned, inefficient and wasteful.
The Council of Governors’ Kenya Agriculture Committee Chair, Bungoma Governor Kenneth Makelo Lusaka, echoed the call for accountability, warning that counties that fail to meet agreed performance benchmarks risk being dropped from donor-funded programmes.
“Let us change the lives of farmers, but let us also observe compliance. Counties must perform, or they will be discontinued,” Lusaka said.
Baringo Governor Benjamin Cheboi supported the push for stricter oversight, calling for prudent use of donor resources to ensure projects translate into real benefits for farmers at the grassroots.
The meeting brought together national and county leaders, including Garissa Governor Nathif Jama Adam and Principal Secretary Patrick Kilemi of the State Department for Cooperatives. Discussions are expected to shape annual work plans and budgets for the 2025/2026 financial year and guide how Kenya deploys external financing to strengthen agricultural value chains.
