Business

UK group, KDC enter Sh41b deal to deliver climate-smart farming

Thursday, November 30th, 2023 03:08 | By
KDC Director General Norah Ratemo. PHOTO/Print

Kenya Development Corporation (KDC) and United Green, a British based private strategic investment group yesterday signed a Memorandum of Understanding (MOU) to develop an advanced $275 million (Sh41.9 billion) climate smart agri-food systems investment in Kenya.

Investment, Trade and Industry Cabinet Secretary Rebecca Miano (pictured) who witnessed the signing ceremony said the partnership will deliver agri-fintech services for rural communities, high productivity climate-smart farming and state-of-the-art agro-processing facilities, creating new markets for at least 100,000 rural households and providing 1.5 million school meals per annum over the next five years.

Trade deficit

The project will also create 2000 direct employment and 5,000 indirect jobs and reduce Kenya’s dependence on importing food commodities by about $200 million (Sh30.6 billion) annually, thus reducing Kenya’s trade deficit, she added.

“Kenya needs a champion organisation to provide leadership and prudent investment, to develop inclusive, scalable, market-based, environmentally sustainable and high productivity agri-food systems. This project has an incredible alignment to the Government of Kenya strategy and with the national Government’s Bottom-up Economic Transformation Agenda (BETA) Flagships,” Miano said.

Speaking during the MoU signing KDC Director General Norah Ratemo said the partnership with the United Green Group is a short in the arm for the government’s efforts to adapt to climate change and address food security in Kenya.

“At KDC we are committed to fostering resilience and adaptation across the agricultural sector. We continue to work closely with the Government of Kenya, development partners, and private sector stakeholders to implement innovative solutions that will enable our farmers to thrive in a changing climate,” he said.

The UK High Commissioner to Kenya Neil Wigan said the investment will support the Kenyan Governments’ strong commitment to agricultural transformation by increasing productivity and output, enhancing livelihoods as well as strengthening Kenya’s food security in the face of global threats.

United Green Chief Investment Officer Neil Carter said the partnership with KDC will deliver real-world solutions to address the impacts of climate change and deliver regional food security.

“We are also proud to be working with key development partners who are assisting to build a sustainable and innovative business in the sector together,” Carter said.

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