Donor-funded agriculture projects are loans, not free money, CS Kagwe warns
By Kenneth Mwenda, December 16, 2025Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe has warned that donor-funded agriculture projects must be treated with the same discipline as public debt.
Speaking at the Joint National Project Steering Committee (NPSC) meeting for World Bank-financed agricultural projects on Tuesday, December 16, 2025, Kagwe said many so-called donor facilities are in fact loans that must deliver measurable results for farmers and the country.
“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 called for moving away from “loose arrangements” and instead implementing well-structured, citizen-driven projects anchored in sound policy and based on national priorities.
Kagwe highlighted the recently approved Livestock Value Chain Support Project (LVSP). The project aims to boost dairy productivity, reduce post-harvest losses, and raise farmer incomes through improved genetics, feeds and fodder, expanded cold chain infrastructure, and stronger farmer organisations.
Kagwe flags procurement concerns
However, the Cabinet Secretary raised concerns over procurement choices appearing in some project plans. Items such as ice cream makers, milk cans, and motorbikes were questioned for their sourcing and relevance. Kagwe criticised the use of “tied-aid” facilities, pointing out that some goods were being imported from countries like Poland despite being available locally.
“Procurement must make economic sense and support Kenyan industry,” he said.
Kagwe also urged the National Treasury to consult line ministries before negotiating external financing. He warned that facilities agreed without technical input risk misalignment and waste.
The call for accountability was echoed by county leaders. Governor Kenneth Lusaka, chair of the Kenya Governors’ Agriculture Committee, warned that counties failing to meet performance benchmarks risk being dropped from projects.
“Let us change the lives of farmers, but let us also observe compliance. Counties must perform, or they will be discontinued,” Lusaka said.
Governor Benjamin Cheboi of Baringo supported the push for prudence in the use of donor funds, stressing that projects must deliver tangible benefits at the grassroots level.
The meeting, which also included Governor Nathif Adam of Garissa and PS Patrick Kilemi from the State Department of Cooperatives, focused on shaping annual work plans and budgets for the 2025/2026 financial year. Discussions are expected to guide how Kenya deploys external financing to strengthen agriculture value chains across the country.