Press release number: IFAD 19/03

Rome, 26 February 2003 - A loan agreement was signed today at the headquarters of the International Fund for Agricultural Development (IFAD) by the Permanent Secretary of the Ministry of Finance Joseph Mbui Magari and by Mr. Lennart Båge, President of IFAD. The loan, in an amount of USD 16.7 million, will support the financing of the USD 25.7 million ‘Mount Kenya East Pilot Project for Natural Resource Management’.

Bordering the Mount Kenya National Park and Forest Reserve, the project area (covering Embu, Meru Central, Meru South, Mbeere and Tharaka) is characterised by its unique ecology and its religious and cultural importance. Poverty and environmental degradation are closely linked in the area: deforestation and inappropriate agricultural practices have lead to land degradation, erosion and a heavy silt load in the rivers coming off the mountain. Uncoordinated use of water close to mountain sources and lack of investment in sanitation have lead to declining water flows during dry periods and poor water quality. Erosion is thought to contribute to the greater frequency of drought and flooding in the area. Together with environmental degradation, the fragmentation of farm plots and the breakdown in the coffee sector as a result of declining global prices have impoverished the rural people living on the slopes of Mount Kenya.

The overall goal of the ‘Mount Kenya East Pilot Project for Natural Resource Management’ is to reduce poverty by promoting the conservation of natural resources, better water management and improved agricultural practices. Through support to the local initiatives already emerging, the project will support better natural resource management in river sub-basins through a combination of measures aimed at rationalising water use, afforestation and improved agricultural practices to reduce erosion. The project will support river sub-basin committees to formulate investments and regulations for the sustainable management of water resources as well as private and publics lands. Water management activities are aimed at improving water flow and quality, while agricultural activities will be focused on reducing erosion from farmer plots and raising production. About360 000 people living in these districts will directly benefit from the project. Populations living in lower areas who need water will benefit directly benefit. Water resource management; environmental conservation; rural livelihoods; community empowerment and project management – are the five main components of the project.

With this project, IFAD will have financed 12 loan projects in the Republic of Kenya, for a total loan amount of USD 121 million and seven grant projects for a total of about USD 18 million.

---

IFAD is a specialized agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. Since 1978 IFAD has financed 628 projects in 115 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.9 billion in loans and grants. Through these projects, about 250 million rural people have had a chance to move out of poverty. IFAD makes the greater part of its resources available to low-income countries on very favorable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.