Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has issued a sharp directive, insisting that all donor-funded agricultural projects must be viewed and managed as public debt, and not as “free money.”

Speaking at the Joint National Project Steering Committee (NPSC) for World Bank-financed agriculture projects in Kilifi, Kagwe stressed that Kenya must move away from “loose arrangements” and guarantee that every facility produces tangible, 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.

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Kagwe took particular aim at project procurement processes, questioning the relevance and sourcing of items like ice cream makers, milk cans, and motorbikes in plans for the Livestock Value Chain Support Project (LVSP).

He criticized the practice of using ‘tied-aid’ facilities to buy basic goods from countries like Poland, arguing that procurement must be economically sound and support local Kenyan industry.

“We cannot be buying basic items from countries like Poland through ‘tied-aid’ facilities, when these can be sourced locally or better aligned to our needs. Procurement must make economic sense and support the Kenyan industry,” he said.

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The Cabinet Secretary also urged the National Treasury to consult closely with line ministries before negotiating external financing deals, warning that technical misalignment and waste are inevitable when agreements are struck without expert input.

The call for accountability received strong backing from the governors present. Council of Governors Agriculture Committee Chair, Governor Ken Lusaka (Bungoma), cautioned that counties face discontinuation from projects if they fail to meet strict performance benchmarks.

“Let us change the lives of farmers, but let us also observe compliance. Counties must perform, or they will be discontinued,” Lusaka said.

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Baringo Governor Benjamin Cheboi reinforced the message, calling for prudent resource use to ensure donor funding translates into grassroots benefits.

The meeting’s discussions will determine the annual work plans and budgets for the 2025/2026 financial year, setting the strategy for deploying external financing to strengthen Kenya’s agriculture value chains.

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A photo of Agriculture CS Mutahi Kagwe/ X Account