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

This report identifies policy and regulatory barriers that hinder the Kenyan private sector from implementing the National Climate Change Action Plan 2013-2017 (NCCAP). It analyzes 33 specific barriers across multiple sectors and proposes priority areas for advocacy and regulatory reform to enable climate-compatible development.

• The report identifies 33 barriers to private sector action on climate change, with five affecting all sectors and 28 specific to individual sectors. Common cross-sectoral themes include a lack of adequate information on climate change, limited access to finance for low-carbon actions, and high upfront costs for climate-friendly technologies.
• Financial barriers are pervasive across all sectors, characterized by risk-averse banks that rarely offer affordable, long-term credit and require high collateral. The report recommends establishing a National Climate Change Fund to centrally oversee the mobilization and disbursement of climate finance.
• In the energy supply sector, the Feed-in Tariff (FiT) policy is identified as inefficient and creates revenue uncertainty because it defines a maximum ceiling tariff without a floor. The report suggests restructuring the FiT to provide a fixed price or a narrow margin between floor and ceiling prices.
• Renewable energy project development is hindered by slow, complex approval processes involving multiple government bodies. The report proposes a 'one-stop shop' within the Energy Regulatory Commission to streamline permits and licenses.
• Energy demand is limited by a lack of energy efficiency agencies and the poor enforcement of existing standards. Recommended actions include creating a labeling scheme for electrical appliances and phasing out incandescent light bulbs.
• Agricultural adoption of low-carbon technologies is limited by high costs and a lack of financing for smallholder farmers. The report suggests introducing 0% interest loans for soil conservation practices and amending the Agriculture Act to establish an Agriculture Development Trust Fund.

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} }