Policy and Regulatory Barriers in Kenya’s National Climate Change Action Plan: Areas for Private Sector Action

The report analyzes 33 barriers across various sectors in Kenya that hinder private sector action on climate change, as identified in the National Climate Change Action Plan (NCCAP) 2013-2017. Key systemic issues include limited access to affordable long-term finance, high upfront costs for low-carbon technologies, and a lack of information on building business resilience. The document prioritizes six key areas for the Kenya Private Sector Alliance (KEPSA) and the Climate Business Information Network (CBIN) to address through government engagement: establishing a National Climate Fund, providing financial incentives for renewable energy, restructuring the Feed-in Tariff (FiT) policy, streamlining renewable energy approvals, improving energy efficiency standards, and coordinating climate-friendly agricultural programs.

• The report identifies 33 distinct barriers to private sector climate action, with five applying to all sectors and 28 specific to individual sectors such as agriculture, energy, forestry, tourism, transportation, waste, and water.
• Financial constraints are a pervasive barrier across all sectors, characterized by expensive credit from Kenyan financial institutions, risk-averse banks, and a lack of long-term, affordable project finance for low-carbon investments.
• The renewable energy supply sector faces significant regulatory and financial hurdles, including high upfront costs, a Feed-in Tariff (FiT) system that lacks revenue certainty, and overly complex, slow approval processes involving multiple government bodies.
• Energy demand is hindered by a lack of dedicated energy efficiency agencies and the poor enforcement of existing standards, creating a need for labeling schemes for electrical appliances and solar water heating codes.
• In the agricultural sector, the adoption of climate-friendly practices is limited by the high cost of low-carbon technologies, insufficient funding for small-scale farmers, and a lack of awareness regarding climate vulnerabilities.
• The report recommends the establishment of a National Climate Change Fund to centrally manage the mobilization and disbursement of climate finance according to NCCAP priorities.

APA

Murphy, D., & Harris, M. (2014). Policy and Regulatory Barriers in Kenya’s National Climate Change Action Plan: Areas for Private Sector Action. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Policy-Regulation-Review.pdf

Chicago

Murphy, Deborah, and Melissa Harris. Policy and Regulatory Barriers in Kenya’s National Climate Change Action Plan: Areas for Private Sector Action. Climate and Development Knowledge Network, 2014. https://cdkn.org/sites/default/files/files/Policy-Regulation-Review.pdf.

Wikipedia

{{cite report |last1=Murphy |first1=Deborah |last2=Harris |first2=Melissa |title=Policy and Regulatory Barriers in Kenya’s National Climate Change Action Plan: Areas for Private Sector Action |publisher=Climate and Development Knowledge Network |date=April 2014 |url=https://cdkn.org/sites/default/files/files/Policy-Regulation-Review.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{murphy2014policy, author = {Murphy, Deborah and Harris, Melissa}, title = {{Policy and Regulatory Barriers in Kenya’s National Climate Change Action Plan: Areas for Private Sector Action}}, institution = {Climate and Development Knowledge Network}, year = {2014}, month = apr, url = {https://cdkn.org/sites/default/files/files/Policy-Regulation-Review.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }