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2. How to encourage private sector climate initiatives in Kenya
- Author:
- Judith Mulwa and Marie Ladekjær Gravesen
- Publication Date:
- 07-2023
- Content Type:
- Policy Brief
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- Climate change is a particularly pertinent issue in Kenya because the country’s economy is highly dependent on its natural resource base (such as agriculture and fisheries), which are sensitive to temperature and rainfall variabilities. As a party to the United Nations Framework Convention on Climate Change (UNFCCC), Kenya must work to mitigate and adapt to climate change. This requires significant financial resources. Per the UNFCCC framework, some national climate actions are not expected to receive financing from international financial sources. Therefore, the country must look for innovative ways of domestically sourcing finances for low-carbon development and climate resilience programmes. Kenya has, in this regard, set up and implemented a national climate fund for financing adaptation and mitigation projects, ideally from various sources, including the private sector. This policy brief explores the legal, price-based, property-based, and information-based incentives for private sector investment and engagement in climate adaptation and mitigation in Kenya. The analysis is based on desk research and 51 stakeholder interviews from identified private sector institutions and industries in Kenya.
- Topic:
- Climate Change, Environment, Natural Resources, Investment, and Private Sector
- Political Geography:
- Kenya and Africa
3. Mapping climate adaptation finance in Kenya's devolved governance system: a case of Makueni County
- Author:
- Judith Mulwa and Marie Ladekjær Gravesen
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- These years, countries are coming up with policies, laws and regulations aimed at mobilising finances to fund response measures for climate change adaptation. It is, therefore, imperative that these finances, among others, are mapped out so that we can track the measures that are financed, the types of financing that are used, and ultimately look at whether the available funds are meeting their objectives in the ways that they are being spent. Kenya is among the first countries to develop policies, strategies and institutional frameworks for climate action, creating a policy and legal environment to advance an effective climate change response. And specifically, Kenya’s Makueni County has enacted county-level climate change regulation as part of the implementation of the national agenda on climate change. The Makueni county government and its partners have made significant efforts to build the capacity to integrate climate information into CIDPs and apply it to resilience planning and budgeting processes. Doing so, Makueni County has been able to attract climate finance in the recent past. The integration of climate financing in the budgetary processes and allocation is an important example that other counties and governance institutions could embrace to attract climate financing and to ensure that impact of the financing is felt at community level. This DIIS Working Paper is a first step at exploring these dynamics, looking at the main types of devolved public funds from the Kenyan ministries and at how Makueni has adapted local institutions and policies to meet local needs of financing for adaptation activities.
- Topic:
- Climate Change, Governance, Finance, and Adaptation
- Political Geography:
- Kenya and Africa
4. Devolution of donor funded climate change adaptation finance
- Author:
- Per Tidemand, Andrew Hattle, Esbern Friis-Hansen, Beatrice Sumari, Peter Rogers, Judith Mulwa, and Millicent Omala
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- From 2013-2019 Tanzania received USD 2.0 billion as adaptation-related development finance, whereas Kenya received USD 3.3 billion. Based on the OECD database, this DIIS Working Paper analysis projects based on their financial value, measured as ‘adaptation-related development finance’. This is combined with an analysis of the project documents to measure degree of devolution was developed with three main parameters: the extent to which finance was managed through local government accounts; the extent to which the projects in the respective national budgets were considered devolved; and the use of participatory planning arrangements for management of the funds. Given Kenya’s greater emphasis on devolution, its fiscal strengths, and the autonomy of its counties, when compared to Tanzanian local governments, it was assumed that adaptation-related development finance would be relatively more devolved in Kenya than Tanzania. However, preliminary analysis suggests otherwise. The analysis also suggests that projects classified by development partners as ‘adaptation-related development finance’ in several cases exaggerate levels of funding and only contribute marginally to improved local governance of climate adaption activities.
- Topic:
- Climate Change, Governance, Finance, and Adaptation
- Political Geography:
- Kenya, Africa, and Tanzania