DRSLP is financed by two entities. These are the Government of Kenya (GoK) contributing 10.5 % of the project cost and the African Development Bank (AfDB) with a loan covering 89.5% of the total project cost.
The Government seeks to promote economic transformation for shared growth through formulation, implementation and monitoring of prudent economic and financial policy at National and County levels of Government.
After the IGAD Heads of States and Governments Summit of September 2011 which agreed on the need for a common funding to address drought and other disasters in the Horn of Africa (HoA), the government of Kenya wrote a concept which was submitted to the African Development Bank for consideration.The concept was approved by the Bank’s Board of management in August 2012 with the project finally getting approval for financing in November 2012.
Through The National Treasury, the government borrowed funds from the African Development Bank (AfDB) to finance the DRSLP project.
It is important to note that the contribution from the Government of Kenya goes beyond the 10.5% funding . The government funds the recurrent costs of the project and any other financial commitments not captured in the initial project costs.
The overall Bank Group Vision for Agriculture and Rural Development is to strive to become the leading development finance institution in Africa, dedicated to assisting African regional member countries in their poverty reduction efforts.
This Vision focuses on the central goal of poverty reduction and, therefore, on agriculture and rural development as a prime building block, given the dominant role agriculture plays in most regional member countries (RMCs), as the key employer of the people and the main contributor to GDP, rural transformation, and economic growth.
More specifically, the Bank’s vision for the agriculture and rural development sector is to assume a leading catalytic role, within the next decade, in supporting the technological, institutional and policy changes that would trigger a lasting transformation of the rural economies of RMCs by empowering their rural populations to improve their productivity and real incomes in an equitable and environmentally sustainable manner. Hence, the thrust of the vision is client-focus, with “people-centered development” as the principal theme.
The overarching objective of the African Development Bank (AfDB) Group is to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction.
The Bank Group achieves this objective by:
- Mobilizing and allocating resources for investment in RMCs; and
- Providing policy advice and technical assistance to support development efforts.
Africa has embarked on a process of economic transformation. This process has seen solid and sustained growth over a decade, but it has been uneven and without a sufficiently firm foundation, and it is not—by any estimation—complete.
The Bank’s vision is thus Africa’s vision, and its future is Africa’s future. The goal of a regionally integrated and economically diverse Africa—determined to include young and old, women and men, rural and urban communities alike, while being increasingly green—will establish Africa as the next global emerging market. The African Development Bank will be its development voice and its development partner of choice.