Kenya has entered a transformative deal worth KSh 40 billion to revive the Galana Kulalu Food Security Project, a long-stalled initiative aimed at turning the country’s agricultural landscape from rain-fed farming to a more reliable, large-scale irrigation system. The agreement, signed with Chinese and UAE partners, will fund the construction of a crucial dam, signaling a strategic shift to safeguard the nation’s food security in the face of recurring droughts and rising food inflation.
A Fresh Start for Galana Kulalu
The new deal, signed in Kilifi on Tuesday, represents a major turning point for the troubled project, which has faced years of delays, financial struggles, and corruption scandals. The initiative, originally launched in 2014, had been plagued by mismanagement under the first contractor, Israeli firm Green Arava, which caused its early phases to fail despite billions in investment. Now, with new partners and a fresh approach, the government is determined to make the project a success.
At the heart of the deal is a trilateral agreement between the Kenyan government, China Communications Construction Company (CCCC), and the UAE, aimed at mitigating financial risks by sharing costs and resources. President William Ruto has emphasized that this phase will focus on building the dam first to ensure a consistent water supply, which was a critical shortcoming in the original plan. This partnership is expected to help secure a more sustainable future for agriculture in Kenya, which has long relied on erratic rainfall patterns.
Key Project Details
The KSh 40 billion investment will be used for the dam’s construction, the installation of a vast irrigation system, and the financing of the overall project. According to the National Irrigation Authority (NIA), the dam will have a storage capacity of 305 million cubic meters and will supply one billion cubic meters of water annually. This will enable the irrigation of 300,000 acres of land, benefiting farmers across the region, and provide safe drinking water to 70,000 households in Kilifi and Tana River counties.
Additionally, the financing model introduced in this new phase brings a commercial angle to the project through the creation of a Water Purchase Agreement Framework. The Kenyan government will contribute equity through the National Infrastructure Fund, while the returns for the investors will come from the sale of water to large-scale commercial farms, including those operated by UAE-based agribusinesses. This approach aims to prevent the project from becoming a financial burden on taxpayers.
In his remarks, President Ruto highlighted the importance of this project as a critical step in reducing the country’s reliance on unpredictable rainfall and boosting agricultural productivity. “By strengthening agricultural productivity, we will stabilize food prices and reduce imports,” he stated, underscoring the broader economic benefits that the project is expected to bring to the country.
The stakes are high for this ambitious plan, but the Kenyan government, in partnership with Chinese and UAE firms, is determined to turn the page on Galana Kulalu’s troubled past and create a sustainable future for the country’s agriculture.
