Selu Africa Limited is set to make a significant contribution to Kenya’s agricultural sector by investing over Ksh117 billion ($880 million) in the Galana-Kulalu Food Security Project. This ambitious investment will be executed over a ten-year period and is poised to transform the region’s agricultural landscape.
Initial Investment and Project Phases
According to Selu Africa Limited’s Chief Executive Officer Nicholas Ambanya, the company plans to initially invest $80 million (approximately Ksh10.6 billion) within the first three years. This initial phase will focus on developing 20,000 acres of land for irrigation.
“We look forward to injecting $80 million in the first three years of this project to develop 20,000 acres of land. Following this, we will invest an additional $800 million over seven years, bringing the total to $880 million over ten years to commercialize a total of 200,000 acres,” stated Ambanya.
Final Stages of Acquisition and Start of Operations
Selu Africa Limited is currently in the final stages of acquiring a lease and other necessary government authorizations. Once these formalities are completed, the company will commence full-scale farming operations.
“What we were doing today was bringing in some of our potential investors to appreciate the infrastructure the government has put in place and the work we have been doing, particularly in major sectors such as the bridge and the dam, to prepare for the start of the project,” Ambanya added.
Infrastructure Development
The project includes the construction of essential infrastructure such as a dam and a bridge within the 1.7 million-acre Agricultural Development Corporation (ADC) farm, which is situated in Tana River and Kilifi Counties. This infrastructure is crucial for the success of the irrigation and transportation of the anticipated massive harvests.
Additionally, Selu Africa Limited is leveraging the existing infrastructure laid down by the government and other development partners to facilitate the project.
Power Supply Strategy
To ensure a reliable and cost-effective power supply, the Korean Solar Power Consortium will install a solar plant to supplement grid power, with diesel generators as a standby source. This multi-faceted approach aims to reduce the overall cost of operations on the farm.
“We will have three sources of power in this project: solar, grid, and diesel. We prioritize solar because we want to go green and lower energy costs. This will be backed up by the grid, with diesel as a standby,” Ambanya noted.
Crop Production and Value Chains
The primary crop to be grown on the farm will be maize. However, Selu Africa Limited also plans to develop other value chains alongside maize to diversify production and enhance food security.
Overcoming Past Challenges
When asked how the company expects to succeed where others, such as the Israeli firm Green Arava, failed, Ambanya explained that the previous contract was focused on infrastructure development rather than farming.
“The government contracted the Israeli firm not to farm but to develop infrastructure, test its efficacy, and then hand it over as a model farm to the private sector,” Ambanya clarified.
Conclusion
Selu Africa Limited’s substantial investment in the Galana-Kulalu Food Security Project marks a significant step towards enhancing Kenya’s agricultural output and ensuring food security. With strategic infrastructure development, a reliable power supply strategy, and a focus on sustainable farming practices, the project is poised to become a cornerstone of Kenya’s agricultural future.
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