Finance

Realizing Kenya’s climate change goals, including the INDC commitment of a 30 per cent reduction in GHG gas emissions by 2030 from a business as usual scenario, will require substantial financial resources. To be successful, Kenya will need to continue to allocate national and county government resources toward climate priorities, facilitate national and international private sector investment, and attract international climate finance from bilateral and multilateral entities. Actions to facilitate climate finance flows are described below.

National Designated Authority (NDA) for the Green Climate Fund: The National Treasury has been designated as the NDA, or the national focal point, for the GCF.

National Implementing Entity (NIE) for the Adaptation Fund: NEMA is the NIE for the US$10 million Adaptation Fund project that assists vulnerable communities to adapt to climate change.

National Implementing Entity with the GCF: access to GCF funds is through NIEs that are accredited to undertake activities of a certain size. With the nomination of the National Treasury, Acumen Fund of the United States was approved by the GCF as an NIE for micro projects of up to US$ 10 million. NEMA is undergoing the GCF approval process to be accredited as an NIE for micro projects.

Kenya Climate Fund: to be established through the climate change legislation as a financing mechanism for priority climate change actions and interventions.

GCF readiness: assists the Government of Kenya to develop a strategic framework for interaction with the GCF and to develop a pipeline of programme and project proposals. Partners: National Treasury, GIZ and UNDP

County Adaptation Funds: assists county governments to prioritize and mainstream climate change adaptation into planning and to access climate finance. Successfully piloted in Isiolo county and lessons learned are informing implementation in Kitui, Makueni, Wajir and Garissa counties.

Partners: County Governments, NDMA, KMD, UK Met Office, International Institute for Environment and Development, UK Government support through the StARCK+ Programme

Climate Public Expenditure and Budget Review: initial assessment of the government’s climate relevant expenditure and establishment of specific national budgeting and accounting codes for the government’s Integrated Financial Management Information System.

Partners: National Treasury, UNEP, UNDP with UK Government support through the StARCK+ Programme

Joint Crediting Mechanism: signed to enable a low-carbon growth partnership between Japan and Kenya. The partnership will enable mitigation projects in Kenya that generate carbon credits that will be purchased by Japan

Partners: MENRRDA and Government of Japan