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Agriculture sector receives loan from afdb

Agriculture sector celebrates 63m€ from AfDB

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In the middle of last month Kenya confirmed the approval of a 63 million Euro loan from the Africa Development Bank. The loan will work towards increasing access to cereal and oil seed production. Hopes are that the increase will be over 1.5 million metric tons over the coming two years.

The loan fell under the AfDB’s $1.5 billion African Emergency Food Production Facility. A collective effort to work against the looming food crisis that has been seen turn rampant due to the war in Ukraine.
According to a statement to newsrooms the loan will support the Ministry of Agriculture, Livestock, Fisheries and Cooperatives (MoALFC). Furthermore, it will allow the government to provide affordable fertilizer and seeds prior to the October-December short rains.

High costs of commodities such as maize flour have been a major issue to Kenyans and this new influx of funds should help mitigate that.
“The government is working to reduce the cost of ‘unga’ (maize flour) to make it affordable to all” said Agriculture CS Peter Munya.

Additional benefits of loan from AfDB

An additional component of the project is provision of trade finance guarantees. Working as An effort to push the private sector and ensure sufficient volumes of fertilizer are available to farmers. Collectively the project is will benefit the entirety of communities, focusing on women and children

The importance of the agriculture sector in Kenya is directly seen in the population it affects. Employing 70 percent of the rural population and accounting for 65 percent of export income as much as its GDP has declined.
The past years have been tough on Kenya as well as other countries in East Africa specifically. From battling the effects of COVID-19, the war in Ukraine and more uniquely locust-swarms and an increasing battle with drought. This has increased the already heavy burden of food security and quality of life.

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