The Public Debt and Privatization Committee probed the use of Government acquired loans to finance projects under the Ministry of Agriculture and Livestock Development’s State Department for Livestock Development and State Department for Agriculture.

In a meeting held on Thursday, August 29, 2024, the Principal Secretary, State Department of Livestock Development, Mr. Jonathan Mueke was asked to outline the implementation status of De-Risking, Inclusion and Value Enhancement (DRIVE) of pastoral economies project where a World Bank IDA loan of the Kshs.16.082 billion was acquired for its implementation.

According to the PS, the five-year project which is now entering implantation year-three targets 21 Arid and Semi-Arid Lands (ASAL) counties and aims at protecting them against drought risk and upgrading livestock value chain by mobilizing private investments.

“We have two implementing partners of the project; ZEP-RE which is implementing DRIVE Component 1 with funding of Kshs.8.615 billion and Kenya Development Corporation (KDC) which implements DRIVE component 2 part 1, with funding of Kshs.4.995 billion. State Department for Livestock Development is the implementer of DRIVE Component 2 part 2 which involves supporting management of the project and guiding day-to-day operations of DRIVE project with funding of Kshs.2.872 billion,” PS Mueke told the Committee.

The Committee, chaired by Hon. Abdi Shurie (Balambala), raised concerns on the rate of absorption questioning whether it was really necessary to borrow the loan and if there is value for money.

“We have noticed that some loans were not worth borrowing. When will all the borrowed money be utilized and, have Kenyans gotten value for this borrowed money or would we have achieved results using the locally available loans?” Vice Chairperson, Hon. (Dr.) Makali Mulu asked.

During the second session, the Principal Secretary for Agriculture, Dr. Kipronoh Rono apprised the Committee on the use of USD.275 million acquired in June 2022 for International Development Association for the National Agricultural Value Chain Development Project.

According to PS Rono, by June 2024 cumulative expenditure for the project amounted to Kshs.472.98 million which translates to an absorption rate of 49 percent of the disbursed funds of Kshs.11, 103.39 million.

He added that the second loan of EURO.30 million was taken to facilitate the programme to Build Resilience for Food and Nutrition Security (BREFONS) in the Horn of Africa projects.