Climate Change and the Kenyan Private Sector

This briefing note outlines the risks and opportunities presented by climate change for the Kenyan private sector. It highlights the economic vulnerability of sectors like agriculture and tourism, discusses the role of the Kenya Private Sector Alliance (KEPSA) in supporting businesses, and provides practical strategies for adaptation and mitigation to enhance competitiveness and sustainability.

• Climate change poses significant economic risks to Kenya, particularly for sectors reliant on natural resources such as agriculture and tourism. Some estimates indicate that droughts and flooding cost Kenya approximately 2.4 per cent of its GDP annually.
• The Kenyan private sector is specifically vulnerable to climate change due to its reliance on hydroelectricity, which accounts for more than half of the country's installed electric power capacity, as well as its dependence on export-oriented crops like tea, coffee, and horticulture for foreign exchange earnings.
• The Kenya Private Sector Alliance (KEPSA) supports businesses through the Climate Business Information Network (CBIN) and by representing private sector interests in the development of the National Climate Change Action Plan 2013-2017 (NCCAP), the Climate Change Policy, and the Climate Change Bill.
• Private sector adaptation and mitigation strategies can be integrated into core business operations to create value. Examples include East Africa Breweries switching to drought-resistant sorghum, Safaricom using solar energy for cell towers, and Kenafric reducing electricity consumption through process improvements.
• Innovation in products and services offers commercial opportunities, such as the production of energy-efficient cookstoves and lights, sustainable energy technologies, and mobile applications like Kilimo Salama, which uses M-Pesa to pay insurance claims to farmers affected by weather extremes.
• Various support mechanisms exist for Kenyan businesses, including the Climate Innovation Centre (CIC) at Strathmore Business School in Nairobi, the Africa Enterprise Challenge Fund's RE-ACT window, and the Centre for Energy Efficiency and Conservation managed by the Kenya Association of Manufacturers (KAM).

APA

Murphy, D. (2014). Climate Change and the Kenyan Private Sector. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Climate-Change-and-the-Private-Sector.pdf

Chicago

Murphy, Deborah. Climate Change and the Kenyan Private Sector. Climate and Development Knowledge Network, 2014. https://cdkn.org/sites/default/files/files/Climate-Change-and-the-Private-Sector.pdf.

Wikipedia

{{cite report |last1=Murphy |first1=Deborah |title=Climate Change and the Kenyan Private Sector |publisher=Climate and Development Knowledge Network |date=April 2014 |url=https://cdkn.org/sites/default/files/files/Climate-Change-and-the-Private-Sector.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{murphy2014climate, author = {Murphy, Deborah}, title = {{Climate Change and the Kenyan Private Sector}}, institution = {Climate and Development Knowledge Network}, year = {2014}, month = apr, url = {https://cdkn.org/sites/default/files/files/Climate-Change-and-the-Private-Sector.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }