Abu Dhabi firm inks deal to expand Galana-Kulalu irrigation project

-On completion, the project could be the biggest in East and Southern Africa, meeting 41 percent of Kenya’s annual maize consumption demand

-Aspects to be implemented under PPP models include crops production, and construction of Galana Dam to support 350,000 acres for food production

Kenya has signed a deal with Abu Dhabi’s Al Dahra agribusiness company to expand the Galana-Kulalu irrigation project. President William Ruto witnessed the signing of the MoU at State House, Nairobi, on Wednesday last week.

“Irrigation is a key pillar of our food security value chain. Our plan is to ensure increased agricultural production and productivity to feed the nation,” the President said.

The Galana Kulalu Food Security project is located in the coastal region within Kilifi and Tana River counties.

The $52,670,000 (Sh6.79bn) project by the government, in partnership with the private sector, is expected to end Kenya’s perennial maize shortage. The National Irrigation Authority is the implementing agency.

“We are building on the Comprehensive Economic Partnership Agreement between Kenya and the United Arab Emirates to initiate development, including irrigation projects that impact the lives of Kenyans,” Ruto said.

The Galana project has faced challenges in implementation and completion timelines. In 2019, the project stalled after the government terminated the initial contract.

Maize is the staple food in Kenya, with an annual consumption of 48 million bags.

On completion, the project is expected to meet the country’s 41 percent annual maize consumption demand. It is also set to be the biggest in east and southern Africa and a major milestone for Kenya in attaining food security.

Last December, Irrigation PS Ephantus Kimotho said the government was in talks with Al Dahra to lease farmland to the company as part of plans to boost Kenya’s food security.

He said the company would invest about $800 million (Sh103 million) to farm 200,000 acres of land at Galana. “We are still negotiating, but we might soon sign a memorandum of understanding,” Mr Kimotho told Bloomberg, indicating that the deal was on.

In January 2023, the President issued a directive for the Galana project to move forward through Public-Private-Partnership (PPP) models. Some 10,000 acres are already developed, with an additional 10,000 acres slated for the medium term.

The aspects to be implemented under PPP models include crops production, and construction of Galana Dam to support another 350,000 acres for food production in the long term.

China Road and Bridge Corporation (CRBC – Kenya) submitted a Privately Initiated Proposal (PIP) to construct the Galana Dam, disclosed the National Irrigation Authority.

“Their PIP was approved to move to the Project Development Phase, according to the PPP Act 2021,” the agency said.

The dam is designed to hold 306 million cubic meters of water and would be crucial in supporting agricultural activities on another 350,000 acres designated for food production.

The authority said Selu Ltd submitted a PIP to undertake production and, after it was approved, to move to the Project Development Phase, embarking on trials on the already developed 10,000 acres.

“Their proposal was successfully evaluated and negotiations concluded. Drafting of the project agreement is ongoing. Once finalised, the agreement will be initialised, presented to the PPP committee for approval, and then to the Attorney General for signing and roll out,” the authority said.