The ADF Finances Smallholders Farm Improvement in Kenya
Tunis, 31 May 2006 – The Board of Directors of the African development Fund approved a loan of UA 22.98 million and a grant of UA 1.15 million (US$ 35 million cumulatively) to finance the Kimiraoluch smallholder farm improvement project in Kenya.
The objectives of the project are to develop sustainable environmentally friendly smallholder irrigation schemes along the shores of Lake Victoria and to increase household income and food security through irrigated smallholder agriculture.
The project comprises three components: (i) Irrigation System Development and Management; with two subcomponents, Formation of Water Users Associations (IWUA). Irrigation infrastructure development, Environmental mitigation and supervision of scheme construction (ii) Marketing and Extension, with three subcomponents, support to farmers, support to extension workers and development of market linkages and (iii) Project Coordination and Management. The capacity building of local service providers will ensure sustainable support to farmers.
The project cost is estimated at UA 27.77 million The ADF loan will be utilized to finance the construction of irrigation schemes and its development, formation of Water Users Associations, marketing and extension support, and support project management. The ADF Grant will fund the costs of environmental mitigation, and monitoring and health and social infrastructure to reduce the incidence of water-borne diseases.
The project will cover two districts of Homa Bay and Rachounyo which have a total of about 400,000 households. About 40% of the households are women headed households based on "clan elders", which is important for mobilizing villagers, conflict resolution and are perceived as main representatives of villages.
The Bank‘s operations in Kenya commenced 1967. To date, the Bank’s cumulative commitments in Kenya amount to UA 698 Million with a total disbursement of UA 447 Million.
* UA 1 = US $ 1.44085 as at 30/04/2006