Galana Kulalu: All You Need to Know About Kenya’s KSh 12.5 Billion Food Project, Its Financiers
- National Treasury Principal Secretary (PS) Chris Kiptoo revealed the new investor funding the Galana-Kulalu irrigation scheme
- The PS noted that the multi-billion shilling project will provide hundreds of jobs to Kenyans if well harnessed
- He pointed out that PPPs are a feasible and sustainable funding option, since the government lacks resources
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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.
A private investor has injected KSh 12.5 billion into the Galana-Kulalu Food Project that aims to increase maize output and improve food security through massive irrigation.
Source: Twitter
National Treasury Principal Secretary (PS) Chris Kiptoo noted that through SELU Ltd, the investment is designated for the development of internal farm roads, the extension of irrigation systems, and the construction of storage facilities.
The PS noted that this would enhance the seamless movement of goods and inputs within the project area and beyond.
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How many acres at Gulana Kulalu will be irrigated?
According to Kiptoo, the first phase of the project targets irrigation of 20,000 acres, with an average expected output of 70 bags of maize per acre annually.
"Around 1.4 million bags of maize, valued at about KSh 5.6 billion, are expected to be delivered annually," the PS stated while touring the Galana-Kulalu Food Security Project, as reported by the state newspaper MyGov on Tuesday, August 19.
He revealed that the project's Phase 1B, which will cover 1,700 acres and increase the total area planted with seed maize to 3,200 acres by 2025, has already started.
"Next year, expansion plans aim to increase by 4,500 acres, with a long-term objective of reaching the 20,000-acre target," he said.
The PS noted that there are 1.5 million acres of land in the larger Galana-Kulalu block that can be used for irrigation, which would provide hundreds of jobs to young men and women.
"If properly harnessed, it has the potential to provide thousands of jobs for young people, boost foreign exchange earnings, and significantly increase farm incomes," Kiptoo explained.
Source: Twitter
Is Galana-Kulalu under PPP?
Kiptoo praised Galana-Kulalu as a prime example of a public-private partnership (PPP) achievement in Kenya.
He pointed out that PPPs are a feasible and sustainable funding option because Kenya cannot expand its infrastructure on a massive scale using only public funds.
Al Dahra, the National Irrigation Authority (NIA), and the Agricultural Development Corporation (ADC) signed a memorandum of understanding (MoU) to conduct feasibility studies for the conversion of 180,000 acres into diversified agricultural enterprises, including value chains for meat and fodder.
"This project will be supported by a proposed 306 million-m³ dam that will supply 200,000 acres with gravity-fed irrigation via an estimated 60 kilometers of canals," the PS added.
Why did Ruto revoke Galana land subdivision?
As previously reported by TUKO.co.ke, President William Ruto toured the project extensively in January.
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During his visit, he revoked the project's planned subdivision into a settlement project.
The president added that to bring an additional 350,000 acres of land for food production, the government would build a dam.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
