Kenya and IFAD Launch $126.8M Climate-Resilience Project to Boost Rural Livelihoods

The International Fund for Agricultural Development (IFAD) and the Government of Kenya have signed a transformative US$126.8 million agreement to co-finance a comprehensive investment project aimed at building resilience and improving livelihoods for over two million rural Kenyans. The new initiative—the Integrated Natural Resources Management Programme (INReMP)—is set to run over eight years, expanding upon the achievements of previous smaller-scale IFAD interventions in the country.

Focusing on the critical Cherangany Hills and Mau Forest, two of Kenya’s most important water towers, INReMP is designed to empower rural communities to manage natural resources more sustainably while safeguarding their future against climate change impacts.

Project Goals: Food Security, Climate Resilience, and Sustainable Livelihoods

INReMP’s core mission is to enhance food, nutrition, and income security for vulnerable populations by promoting sustainable ecosystem practices. With a sharp focus on women, youth, and marginalized groups, the programme will support efforts to combat the severe degradation that has undermined agriculture, water access, and livelihoods in these ecologically vital areas.

According to Sara Mbago-Bhunu, IFAD Regional Director, “Natural resource management is linked to livelihood activities, and agroforestry can be sustainable and provide multiple benefits. INReMP will scale up interventions that have already shown impact in our past projects in Kenya.”

Climate and Environmental Challenges

Kenya's agricultural sector—responsible for 33% of GDP and employing 53% of the population—is under increasing pressure from climate change and unsustainable land-use practices. The country ranks 52nd globally in climate vulnerability, with projections of temperature increases between 1.5°C to 2.5°C by 2046–2065, alongside unpredictable rainfall, droughts, and floods that are already affecting crop yields and natural resources.

The Cherangany Hills and Mau Forest—two of five major water towers in Kenya—are particularly at risk. Rural populations residing in these regions face rampant deforestation, soil erosion, and water scarcity. Over-exploitation and poor land management further intensify these problems.

Multi-Level Interventions for Lasting Impact

INReMP addresses these issues through a multifaceted approach, including:

• Restoration of Ecosystems: Supporting sustainable management of forests, wetlands, rangelands, and arable lands.

• Conflict Mitigation: Reducing natural resource-based conflicts through equitable access and community engagement.

• Climate-Proof Infrastructure: Investing in irrigation, renewable energy, and water management systems that are resilient to future climate variability.

• Livelihood Enhancement: Promoting climate-smart agriculture and income-generating activities such as:

  • Dairy and poultry farming

  • Apiculture (beekeeping)

  • Horticulture

  • Agroforestry

Hon. FCPA John Mbadi Ng’ong’o, Cabinet Secretary of The National Treasury and Economic Planning, emphasized, “This programme is not just about conserving the environment, it’s about securing the livelihoods of our rural communities, restoring their natural resources, and building resilience for future generations.”

Broad-Based Financial Support and Future Partnerships

The total cost of the INReMP initiative is estimated at US$262.8 million, with contributions from a diverse range of stakeholders:

• IFAD: US$126.8 million

• Green Climate Fund: US$40 million

• Government of Kenya: US$23.5 million

• Global Environment Facility (GEF): US$7.14 million

• Private sector: US$10.1 million

• Project participants: US$8 million

Additionally, a US$47 million financing envelope remains open to attract new investors and development partners committed to climate action and rural transformation.

A Legacy of Impact and Collaboration

This project builds on a strong history of IFAD engagement in Kenya. Since 1979, IFAD and its partners have implemented 21 development projects, mobilizing over US$1.2 billion in investments and reaching more than 4 million households. INReMP continues this legacy with a sharpened focus on resilience, climate adaptation, and community empowerment.

By integrating environmental restoration with socio-economic upliftment, the INReMP initiative is set to become a landmark in Kenya’s development journey—creating a model for climate-resilient rural economies that others across the continent can emulate.