Climate Change and the Kenyan Private Sector

The document highlights that Kenya's economy is highly exposed to climate change, with droughts and flooding estimated to cost approximately 2.4% of GDP annually. It argues that the private sector can mitigate risks and gain competitive advantages through resource efficiency, renewable energy, and product innovation. The Kenya Private Sector Alliance (KEPSA) is identified as a key entity supporting firms in managing these risks and accessing opportunities, such as those outlined in the National Climate Change Action Plan 2013-2017 (NCCAP).

• Climate change poses significant economic risks to Kenya, particularly for sectors reliant on natural resources like agriculture and tourism. Some estimates indicate that droughts and flooding cost the country about 2.4 per cent of GDP per year.
• Kenya's private sector is specifically vulnerable due to its reliance on hydroelectricity, which accounts for over half of the installed electric power capacity, and export-oriented crops such as tea, coffee, and horticulture.
• The National Climate Change Action Plan 2013-2017 (NCCAP) identifies the primary climate impacts for Kenya as sea level rise, flooding, water scarcity, and drought.
• Private sector adaptation and mitigation can be integrated into core business strategies through operational changes, product innovation, and social investment. Examples include East Africa Breweries using drought-resistant sorghum, Safaricom using solar energy for cell towers, and Kilimo Salama providing weather-indexed insurance via M-Pesa.
• The Kenya Private Sector Alliance (KEPSA) supports businesses through the Climate Business Information Network (CBIN) and by advocating for private sector interests in the NCCAP and emerging climate legislation.
• Several support mechanisms exist for Kenyan firms to adopt green technologies, including the Climate Innovation Centre (CIC) at Strathmore Business School and the Africa Enterprise Challenge Fund's RE-ACT window, with funding from the UK, Denmark, and Sweden.

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} }