Kenya, Hungarian Bank Sign Tied-aid Credit Agreement to Upgrade Ahero Irrigation Scheme

 


A Tied-aid Credit Agreement on the Rehabilitation and Upgrading of Pumping Station in Ahero Irrigation Scheme, Kisumu, was signed by Mr Kornél Kisgergely, President and CEO of EXIM Bank of Hungary, and Prof. Njuguna Ndung'u, Cabinet Secretary for National Treasury and Economic Planning, on behalf of the Government.

A tied-aid credit agreement was signed by Mr Kornél Kisgergely, President and CEO of EXIM Bank of Hungary, and Prof. Njuguna Ndung'u, Cabinet Secretary for National Treasury and Economic Planning, on behalf of the government, for the rehabilitation and upgrading of a pumping station in the Ahero Irrigation Scheme in Kisumu.

This is a significant win for the State Department of Irrigation because the deal aims to reduce the nation's rice deficit and increase the amount of land under irrigation.

Mr. Ephantus Kimotho, PS for Irrigation, described the agreement's signature as yet another significant step towards putting Kenya's Rice Surplus Plan into action and strengthening the country's farming system's resilience to climate change.

In the Kobongo extension area, the rehabilitation adds 1,000 acres to the paddy rice producing area and lowers the yearly operating costs of electric pumps by Ksh.15 million, with a small maintenance cost for the solar power system.

An additional Ksh.80 Million in income for farmers in the expansion area will result from increased production of raw materials for the agro-processing of rice value chains, which would ultimately lead to the establishment of 7,500 direct jobs and 15,000 indirect jobs.

Senior government officials, including PS State Department for Blue Economy and Fisheries Betsy Njagi, NIA CEO Eng. Charles Muasya, MBS, and Hungarian Minister for Foreign Affairs and Trade, H.E. Péter Szijjártó, CS Mining, Blue Economy, and Maritime Affairs, H.E. Salim Mvurya EGH, and others, witnessed the signing of the agreement.

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