Climate Proofing Your Business

The document outlines the necessity for businesses in Kenya to 'climate-proof' their operations by assessing risks and implementing adaptation measures. It highlights that climate change impacts—such as temperature increases and rainfall changes—affect all economic sectors, with droughts and flooding estimated to cost Kenya approximately 2.0 per cent of GDP annually. The briefing provides a sector-specific matrix of risks and opportunities and shares examples of Kenyan companies already adapting through supply chain diversification and innovative insurance products. It advocates for the use of risk assessment tools and calls for government leadership in demonstrating climate resilience.

• Kenya's exposure to climate risk is high, with mean annual temperatures increasing by 1.0o Celsius since 1960 and shifts in rainfall patterns, particularly more rainfall during the short rains from October to December.
• The economic impact of droughts and flooding in Kenya is estimated at about 2.0 per cent of GDP per year.
• Climate change affects all economic sectors in Kenya, with agriculture being particularly sensitive as it represents roughly 20 per cent of the national GDP.
• Different sectors face specific climate risks and opportunities: agri-business faces reduced crop yields but may expand into new areas; energy faces reduced hydropower but gains in wind and solar; and transportation faces infrastructure damage from sea-level rise and flooding.
• Some Kenyan businesses are already implementing adaptation measures, often driven by cost savings rather than explicit risk management, such as East Africa Breweries using drought-resistant sorghum and the Kenya Tea Development Agency using drought-resistant tea varieties.
• The Kilimo Salama initiative demonstrates a technological approach to climate risk through an index-based micro-insurance product using weather stations and SMS-based mobile technologies via Safaricom and M-pesa to distribute payouts to farmers.
• Climate-proofing a business involves assessing current and future risks and taking low-cost measures such as diversifying supply chains and customer bases, protecting long-term assets, and increasing insurance coverage.

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} }