The development of the one million acre irrigation scheme will be undertaken under the public-private partnership.
The government will invest US$1.4bn in infrastructure development with US$2.9bn coming from the private sector.
In the 2013/2014 financial year, the government allocated US$42mn to the first phase of the project.
The project is aimed at increasing the country’s food security by breaking away from the rain-fed agriculture, while it is also expected to create more than two million jobs across Kenya.
The National Irrigation Board said that once completed the project would see 500,000 acres of land put to maize production, 200,000 acres to sugar cane, 150,000 acres to beef and game animals, 50,000 acres to horticulture, 50,000 acres to dairy animals while a further 50,000 acres will be dedicated to growing fruits such as mangoes and guavas.
The irrigation scheme is in Kilifi and Tana River counties and derives water from the Galana/Sabaki River, the second largest in the country.