THE agriculture sector has received a boost following the signing of a Sh4.9 billion loan between Africa Development Bank and the government.

The funds will be used to reduce the effects of drought on agribusiness in Baringo, Marsabit, Isiolo and Turkana.

The long term loan which is to be repaid over forty years will be used to fund stablisation of water resources, set up irrigation schemes,construct abbatoirs and develop trade centres and markets for the agricultural produce from the target areas.

"These funds will help us address the impact of adverse weather conditions on agriculture. The funds will be used to develop measures to mitigate against weather related disasters," said Finance minister Njeru Githae.

The ADB said the project is part of a wider funding programme for the horn of Africa mooted in September 2011 in a heads of states meeting held in Nairobi that focused on drought. Other loan recipients are Djibouti and Ethiopia.

Separately Kenya also received a Sh82.7 million grant from Japan to improve the water supply system in Narok county.

"I understand that Narok whose population is fast growing is a water stressed town which has witnessed inter ethnic conflicts over water in the past," said Ambassador of Japan to Kenya Toshihisa Takata.