Kenya’s National Climate Change Action Plan and the Private Sector

The document outlines the financial requirements for Kenya's transition to a low-carbon economy, estimating that Ksh 1,085 billion is needed for the 2013-2017 National Climate Change Action Plan. It identifies key barriers to private investment, such as arduous project development processes, and suggests improvements including the implementation of the draft Climate Change Bill 2014. While Kenya has a strong track record in renewable energy investment and voluntary carbon markets, the briefing warns that compliance carbon markets are currently limited by oversupply and lack of access to the EU-ETS. It lists several domestic and international funding mechanisms available to Kenyan businesses for clean technology and energy efficiency.

• Implementing Kenya's National Climate Change Action Plan (NCCAP) from 2013 to 2017 requires an estimated investment of Ksh 1,085 billion from public and private sources.
• The private sector, including international investors, has already contributed more than US$2.8 billion toward renewable energy production in Kenya.
• Private sector investment in climate action is hindered by a long and arduous project development process and poorly implemented or suboptimal policy incentives.
• Kenyan banks have historically avoided climate-related investments due to a lack of experience and limited awareness of potential returns, though donor support is helping them better understand risk profiles.
• Kenya is ineligible to supply Certified Emission Reductions (CERs) to the EU-ETS compliance market because it is not classified as a least developed country and lacks a bilateral agreement with the EU.
• The compliance carbon market is currently unattractive for project developers due to a global oversupply of credits, with CER prices falling to approximately US$ 0.55 per tonne in early February 2014.
• Kenya was the world's fourth largest supplier in the 2012 voluntary carbon market, providing over 4 million tonnes of offsets, primarily for REDD projects and clean cookstoves.

APA

Murphy, D. (2014). Kenya’s National Climate Change Action Plan and the Private Sector. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Financing-Private-Sector-Climate-Change-Action.pdf

Chicago

Murphy, Deborah. Kenya’s National Climate Change Action Plan and the Private Sector. Climate and Development Knowledge Network, 2014. https://cdkn.org/sites/default/files/files/Financing-Private-Sector-Climate-Change-Action.pdf.

Wikipedia

{{cite report |last1=Murphy |first1=Deborah |title=Kenya’s National Climate Change Action Plan and the Private Sector |publisher=Climate and Development Knowledge Network |date=April 2014 |url=https://cdkn.org/sites/default/files/files/Financing-Private-Sector-Climate-Change-Action.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{murphy2014kenyas, author = {Murphy, Deborah}, title = {{Kenya’s National Climate Change Action Plan and the Private Sector}}, institution = {Climate and Development Knowledge Network}, year = {2014}, month = apr, url = {https://cdkn.org/sites/default/files/files/Financing-Private-Sector-Climate-Change-Action.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }