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THE SIGNING OF TIED-AID CREDIT AGREEMENT ON THE REHABILITATION AND UPGRADING OF PUMPING STATION IN AHERO IRRIGATION SCHEME, KISUMU COUNTY

The Cabinet Secretary for National Treasury and Economic Planning Prof. Njuguna Ndung’u and Mr. Kornél Kisgergely, President and CEO of EXIM Bank of Hungary signed a Tied-aid Credit Agreement on the Rehabilitation and Upgrading of Pumping Station in Ahero Irrigation Scheme, Kisumu County on March 27, 2024.

In attendance was the Hungarian Minister for Foreign Affairs and Trade H.E. Péter Szijjártó, CS Mining, Blue Economy and Maritime Affairs H.E Salim Mvurya EGH, PS State Department for Blue Economy and Fisheries Betsy Njagi, PS State Department for Irrigation CPA Mr. Ephantus Kimotho, CBS, NIA CEO Eng. Charles Muasya, MBS and other senior government officials.

The Government through Bottom Up Economic Transformation Agenda (BETA) has prioritized Food Security. It seeks to bring an additional one (1) million acres under irrigation by 2027.

In order for NIA to realize its mandate of providing irrigation infrastructure and irrigation water management services in Ahero Irrigation Scheme, it plans to introduce the use of solar Photo Voltaic system to reduce the cost of operation and maintenance and also improve efficiency within the existing irrigation systems to enhance production and reduce the demand for electricity from the national grid.

The rehabilitation of Ahero Irrigation Scheme will bring on board an additional 1,000 acres of land under paddy rice production in Kobongo expansion area.

The rehabilitation and upgrading of the pumping system is projected to reduce the cost of operation of electric pumps by Kshs.15, 519,367.14 annually with a marginal expense on maintaining the solar power system. The savings will be channeled towards improving irrigation water management within the scheme.

The improved water reliability will increase area under irrigation, increase crop productivity and the eventual income from farming activities.

Enhanced production of raw materials for agro-processing of rice value chains will ultimately translate to creation of 7,500 direct jobs and 15,000 in-direct jobs and increased income to farmers by additional Kshs. 80,000,000 in the expansion area thus contributing positively to the economy.