Climate Proofing Your Business

This briefing note provides guidance for businesses in Kenya on how to assess and manage climate-related risks to build resilience and identify opportunities. It outlines the economic impacts of climate change on various sectors, provides examples of corporate adaptation strategies, and suggests a framework for climate-proofing business operations.

• Kenya faces high exposure to climate risk, with mean annual temperatures increasing by 1.0° Celsius since 1960 and shifts in rainfall patterns, particularly more rainfall during the short rains from October to December. The economic cost of droughts and flooding is estimated at approximately 2.0 per cent of GDP annually.
• Climate change impacts vary by sector: agriculture (which represents about 20 per cent of Kenya's GDP) is highly sensitive; trade and manufacturing are vulnerable to disruptions in water, energy, and transport; and tourism is threatened by impacts on wildlife and coastal facilities.
• Climate risks can be direct, such as property damage from flooding and increased insurance premiums, or indirect, such as rising commodity prices and workforce health issues due to heat-related illness.
• Some Kenyan businesses are already implementing adaptation measures, often driven by cost savings rather than explicit risk management. Examples include East Africa Breweries using drought-resistant sorghum, the Kenya Tea Development Agency using drought-resistant tea varieties, and the Kilimo Salama index-based micro-insurance product for farmers.
• Climate-proofing a business involves assessing current and future risks and adjusting decisions to account for losses and opportunities. Recommended actions include protecting long-term assets, diversifying supply chains and customer bases, increasing insurance coverage, and positioning for future policy.
• The Kenya Private Sector Alliance (KEPSA) maintains an inventory of fifteen publicly available climate risk assessment tools to help the private sector protect their bottom line.

APA

Climate and Development Knowledge Network (2014). Climate Proofing Your Business. https://cdkn.org/sites/default/files/files/Climate-Proofing-Your-Business.pdf

Chicago

Climate and Development Knowledge Network. Climate Proofing Your Business. 2014. https://cdkn.org/sites/default/files/files/Climate-Proofing-Your-Business.pdf.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Climate Proofing Your Business |date=April 2014 |url=https://cdkn.org/sites/default/files/files/Climate-Proofing-Your-Business.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetwork2014climate, author = {{Climate and Development Knowledge Network}}, title = {{Climate Proofing Your Business}}, institution = {Climate and Development Knowledge Network}, year = {2014}, month = apr, url = {https://cdkn.org/sites/default/files/files/Climate-Proofing-Your-Business.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }