MPs question use of Ksh.16 billion World Bank loan for livestock insurance scheme

On Thursday, the committee invited Livestock PS Jonathan Mueke to update on the status of the Ksh.16.082 billion World Bank loan to fund the De-Risking, Inclusion and Value Enhancement of Pastoral Economies (DRIVE) project.

The DRIVE project is a Horn of Africa initiative that seeks to shield pastoralists against the severe drought by providing them with the necessary support and resources such as insuring their livestock, accessing financial services and equipping them with financial knowledge.

In particular, the legislators raised concerns about whether Kenyans are getting value for money and whether it was necessary to borrow the loan when the country is undergoing a fiscal crisis. 

"As a committee, we have noticed that some loans we have borrowed were not worth borrowing. When will all the borrowed money be utilized, and have Kenyans gotten value for this borrowed money, or would we have achieved results using the locally available loans?”  Makali Mulu, the Committee Vice-Chairperson, asked.

In response, PS Mueke said that the project is being implemented in phases as the government is funded by other partners aside from the World Bank. 

“We have two implementing partners of the project: ZEP-RE, which is implementing DRIVE Component 1 with funding of Ksh.8.615 billion, and Kenya Development Corporation (KDC), which is implementing DRIVE Component 2 Part 1 with funding of Ksh.4.995 billion," the PS said. 

"State Department for Livestock Development is the implementer of DRIVE Component 2 part 2, which involves supporting the management of the project and guiding day-to-day operations of the DRIVE project with funding of Ksh.2.872 billion,” he added. 

During the afternoon session, Agriculture PS Kipronoh Rono appeared before the Committee to appraise them of the Ksh.35.4 billion (USD 275 million) acquired in June 2022 from the International Development Association for the National Agricultural Value Chain Development Project. 

The PS said that the government had spent Ksh.5.4 billion towards the project which translates to 49 per cent absorption rate as of June 2024. 

He added that the State acquired a second loan of Ksh.4.2 billion to facilitate a program meant to address climate change and food insecurity known as Build Resilience for Food and Nutrition Security (BREFONS). 

Launched in 2023, the Drive project seeks to combat climate shocks for pastoral communities in Kenya, Ethiopia, Somalia and Djibouti. 

According to the government. it is expected to assist over 250,000 households which translates to 1.6 million pastoralists and their dependents over a five-year period. 

In Kenya, over 150,000 pastoralists are expected to benefit from the project across the Arid and Semi-Arid Lands (ASALs).