NAIROBI — In a major strategy shift aimed at insulating its agricultural sector from climate shocks, the Kenyan government is leaning heavily on private capital to underwrite a Sh598 billion ($4.6 billion) decade-long expansion of its agricultural water infrastructure.
Under the newly unveiled National Irrigation Sector Investment Plan (NISIP) 2025–2035, the state is calling on private investors, commercial banks, and global agribusinesses to fund 61 per cent of the total outlay. The ambitious plan seeks to increase Kenya’s total irrigated farmland past 1.5 million acres by 2035, transitioning the national food basket away from unpredictable rain-fed agriculture.
The capital drive was formally launched during the Eastern and Southern Africa Private Sector Forum on Irrigation 2026, held in Nairobi on October 5–6. The two-day summit brought together government representatives, commercial lenders, equipment manufacturers, and institutional investors from across the region to address market failures, credit risks, and regulatory hurdles that have historically deterred private debt and equity in agricultural water assets.
“The policy direction is unequivocal: we are shifting irrigation from a state-funded public utility model into a commercially viable, investor-led asset class,” said Water, Sanitation, and Irrigation Cabinet Secretary Eng. Eric Mugaa during the forum. “By pairing private capital with government-backed de-risking frameworks, we are creating a transparent and bankable environment for long-term agricultural investment.”
To de-risk the sector and catalyze private credit, the government is collaborating closely with the World Bank and the International Finance Corporation (IFC) under the Kenya Climate Resilient Irrigation Scale-Up (K-RISE) program. K-RISE will introduce structured credit guarantees, blended finance vehicles, and performance-based instruments to lower capital costs and mitigate systemic agricultural lending risks.
The blueprint targets five core investment pathways, including farmer-led micro-irrigation, commercial agribusiness concessions, high-performance public schemes, and climate-resilient water infrastructure in Arid and Semi-Arid Lands (ASALs). Beyond bolstering food security, state economic planners project that the expanded acreage will generate thousands of rural jobs, boost farm-gate incomes, and expand export market access for high-value agricultural commodities.
“Unlocking private capital for irrigation requires overcoming systemic hurdles around land tenure, water rights, and upfront equipment costs,” noted Qimiao Fan, World Bank Divisional Director for Eastern and Southern Africa. “Through K-RISE and NISIP, we are establishing financial mechanisms specifically designed to crowd in commercial banks, technology providers, and private equity into Kenya’s water-agri ecosystem.”
