The Irrigation Mega Dams Kenya programme advanced this week following high-level talks between senior government officials and the World Bank aimed at aligning financing, project preparation, and private sector participation ahead of a scheduled 2026 groundbreaking for six priority dams.
The engagement brought together the Principal Secretary for Irrigation, CPA Ephantus Kimotho, and the Principal Secretary for Water and Sanitation, Julius Korir, with a World Bank delegation led by Gillian Rogers, the institution’s Principal Country Officer. Discussions focused on project structuring, risk mitigation, and mobilising institutional capital for irrigation and water infrastructure.
The World Bank reaffirmed its status as a long-standing development partner in Kenya’s water and irrigation sectors. Its support includes the National Irrigation Sector Investment Plan, the Mwache Dam Project in Kwale County, national WASH programmes, and regional collaboration under the Horn of Africa Initiative.
Nineteen Dams in Pipeline, Six Ready for 2026
During the meeting, the State Department for Irrigation reported progress on a pipeline of 19 mega dams. Six have reached “project-ready” status and secured land for dam construction and downstream irrigation infrastructure. These are:
- Galana
- Lowaat
- Radat
- High Grand Falls
- Basilinga
- Thuci
The six priority projects are planned for groundbreaking in 2026 and are being structured on a model in which agricultural off-takers will develop irrigation schemes and pay water tariffs. Officials said the approach aims to strengthen financial sustainability and reduce fiscal pressure.
Private Capital Mobilisation and Market Structuring
To transition the initiative into a bankable programme, PS Kimotho outlined four interventions targeting private and institutional capital. These include technical advisory for transaction preparation, structured market sounding via investor engagement, credit enhancement tools, and the use of capital market instruments such as project note issuance.
According to the Ministry, the objective is to align the Irrigation Mega Dams Kenya programme with global blended finance practices, enabling participation from Development Finance Institutions (DFIs), pension funds, insurance pools, and regional capital markets.
Ensuring Bankability Through SPVs and Guarantees
A key discussion theme involved coordinated project structuring through state-owned Special Purpose Vehicles (SPVs) supported by Viability Gap Financing (VGF) and credit enhancement mechanisms. Revenue streams are expected to be anchored on water tariffs and land leases.
PS Kimotho proposed establishing a joint working group between the Ministry, the World Bank, and IFC Kenya to accelerate transaction preparation and investor interface work.
Holistic Water and Sanitation Coordination
The State Department for Water and Sanitation outlined complementary areas for collaboration, including technical assistance for project preparation, funding for Non-Revenue Water (NRW) reduction, and improving social and climate resilience outcomes across the broader water sector.
Reducing NRW remains a key efficiency objective for utilities globally, improving service delivery, operational performance, and long-term water security.
Strategic Outcomes
Officials stated that the Irrigation Mega Dams Kenya initiative is expected to contribute to multiple national priorities, including food security, multi-use water storage for climate adaptation, hydropower-linked components under select dams, agricultural value chain expansion, and improved regional water security within the Horn of Africa.
In addition, the programme is positioned to support Kenya’s medium-term planning frameworks by reducing weather-related agricultural losses, stabilising irrigation-dependent production, and enabling smallholder and commercial farming integration. Officials noted that the dams could also strengthen livestock resilience in arid and semi-arid counties, where drought cycles remain a major driver of vulnerability and food insecurity.
The initiative aligns with Kenya’s broader transition toward climate-resilient, multi-sector water investments backed by blended finance structures. The talks form part of the ongoing alignment between development partners and the Government of Kenya on the implementation of the National Water Investment Plan and the National Irrigation Sector Investment Plan, both of which prioritise coordinated infrastructure delivery, expanded private sector participation, and sustainable financing models.
