Climate finance landscape in arid and semi-arid counties of Kenya

The report analyzes climate finance in Kenya's arid and semi-arid lands (ASAL), specifically in Turkana, Elgeyo Marakwet, Narok, and West Pokot. It finds a significant misalignment in funding, with over 60% of climate finance directed toward mitigation despite the high vulnerability of these regions to climate-induced droughts and floods. The study identifies severe funding gaps, where actual budgetary allocations for climate action in some counties are as low as 2% to 9% of estimated needs. Key barriers include weak institutional capacity, fragmented governance, and limited access to formal financial markets. The report recommends strengthening county-level technical skills, promoting innovative financing like green bonds and blended finance, and mainstreaming climate priorities into local budgeting to improve adaptation outcomes.

• Climate finance allocation in the studied counties is heavily skewed toward mitigation, with over 60% of funding directed there and only 20–25% (specifically 24% overall) allocated to adaptation.
• There is a severe financing gap for climate action at the county level; for example, Turkana County estimated an annual need of KES 400 million but received only KES 23.2 million (approximately 6%) in the most recent budget cycle.
• The four counties face distinct but severe climate threats: drought is the most widely cited hazard across all, while Elgeyo Marakwet is specifically threatened by landslides and flash floods.
• County governments have institutionalized climate finance through County Climate Change Funds (CCCFs), with Narok allocating 3% and Elgeyo Marakwet and Turkana allocating 2% of their development budgets to these funds.
• Significant barriers to mobilizing climate finance include weak institutional capacity, fragmented coordination between national and local levels, and an uncertain regulatory environment regarding land tenure and resource rights.
• Local government capacity is hindered by an inability to develop "bankable" projects that meet the stringent requirements of international funding sources, as well as inefficient bureaucratic procurement processes.
• Innovative financing opportunities for ASAL counties include green bonds for renewable energy, blended finance for water infrastructure, and Payment for Ecosystem Services (PES) for watershed and rangeland protection.
• Socio-economic vulnerabilities, including high poverty and unemployment, amplify the impact of climate change and marginalize vulnerable groups from climate finance decision-making.

APA

Lutta, A., Kehbila, A., Kisang, O., Osano, P., & Macharia, P. (2025). Climate finance landscape in arid and semi-arid counties of Kenya. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2025/11/imara-climate-finance-kenya-sei2025-054.pdf

Chicago

Lutta, Alphayo, Anderson Kehbila, Obadiah Kisang, Philip Osano, and Pauline Macharia. Climate finance landscape in arid and semi-arid counties of Kenya. Stockholm Environment Institute, 2025. https://www.sei.org/wp-content/uploads/2025/11/imara-climate-finance-kenya-sei2025-054.pdf.

Wikipedia

{{cite report |last1=Lutta |first1=Alphayo |last2=Kehbila |first2=Anderson |last3=Kisang |first3=Obadiah |last4=Osano |first4=Philip |last5=Macharia |first5=Pauline |title=Climate finance landscape in arid and semi-arid counties of Kenya |publisher=Stockholm Environment Institute |date=November 2025 |url=https://www.sei.org/wp-content/uploads/2025/11/imara-climate-finance-kenya-sei2025-054.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lutta2025climate, author = {Lutta, Alphayo and Kehbila, Anderson and Kisang, Obadiah and Osano, Philip and Macharia, Pauline}, title = {{Climate finance landscape in arid and semi-arid counties of Kenya}}, institution = {Stockholm Environment Institute}, year = {2025}, month = nov, url = {https://www.sei.org/wp-content/uploads/2025/11/imara-climate-finance-kenya-sei2025-054.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }