Kenya inks US$800M deal with UAE’s Al Dahra to expand Galana-Kulalu irrigation project

KENYA – Kenya has inked a US$800 million (KES103 billion) deal with Al Dahra, an Abu Dhabi-based agribusiness firm, to expand the Galana-Kulalu Irrigation Project in an effort toward achieving food security in the country.

The partnership aims to introduce advanced irrigation technologies and sustainable farming practices across an additional 200,000 acres within the complex to significantly enhance Kenya’s maize production and address the nation’s perennial shortages.

The deal, witnessed by President William Ruto at State House in Nairobi on February 12, investment is part of a broader plan to lease agricultural farmland, as announced by Irrigation Principal Secretary Ephantus Kimotho in December 2022.

The US$52.67 million (KES6.79 billion) project, located in the coastal region spanning Kilifi and Tana River counties, is set to become the largest irrigation scheme in East and Southern Africa.

Once completed, it is expected to meet 41% of Kenya’s annual maize consumption demand, which stands at 48 million bags. Maize is a staple food in Kenya, and the project is seen as a critical milestone in the country’s journey toward self-sufficiency in food production.

Historically, the Galana-Kulalu Food Security Project has faced numerous challenges since its inception, including delays and the termination of a contractor in 2019. The new partnership with Al Dahra signals a renewed commitment to the project’s success.

President Ruto emphasized the importance of irrigation in Kenya’s food security strategy, stating, “Irrigation is a key pillar of our food security value chain. Our plan is to ensure increased agricultural production and productivity to feed the nation.”

He also highlighted the role of the Comprehensive Economic Partnership Agreement (CEPA) between Kenya and the United Arab Emirates (UAE) in fostering development initiatives that directly impact Kenyans’ lives.

Eng. Eric Mugaa, the Cabinet Secretary Ministry of Water, Sanitation and Irrigation said that the Government of Kenya is committed to addressing food security through strategic partnerships with the private sector.

“We are pleased to collaborate with Al Dahra and believe this project will be a game-changer for enhancing Kenya Food Security Agenda and reduce the national food deficit. This is one of Kenya’s largest Foreign Direct Investments,” Mugaa noted.

On his part, Arnoud van den Berg, Group CEO of Al Dahra said that the partnership with the Government of Kenya is a significant milestone for Al Dahra.

We are excited to contribute to Kenya’s agricultural development and food import substitution through our innovative farming practices and extensive experience in large scale irrigated farming. The project is expected to have a positive impact on the Kenyan people, surrounding communities, and the agricultural sector as a whole. It will create jobs, support local businesses, and foster sustainable agricultural practices,” Berg said.

Public-private partnership drives progress

The Galana-Kulalu project is being implemented through a Public-Private Partnership (PPP) model, a directive issued by President Ruto in January 2023. The National Irrigation Authority (NIA), the agency overseeing the project, has already developed 10,000 acres, with plans to expand to an additional 10,000 acres in the medium term.

In a significant development, China Road and Bridge Corporation (CRBC – Kenya) has submitted a Privately Initiated Proposal (PIP) to construct the Galana Dam, which is designed to hold 306 million cubic meters of water.

The dam will support agricultural activities on an additional 350,000 acres earmarked for food production. The NIA confirmed that CRBC’s proposal has been approved and is now in the Project Development Phase, in line with Kenya’s PPP Act 2021.

Selu Ltd, another private entity, has also submitted a PIP to undertake production on the developed 10,000 acres. After successful evaluation and negotiations, the project agreement is currently being drafted and will undergo approval by the PPP Committee and the Attorney General before implementation.

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