Kenyan companies in high-emission sectors will gain easier access to green financing

Kenyan companies operating in carbon-heavy industries such as transport, waste, energy and agriculture will benefit from easier access to carbon finance.

This follows the signing of a new agreement to increase the availability and mobilization of catalytic carbon and climate finance.

The partnership between KEPSA and EcoSecurities aims, among other things, to support businesses operating in Kenya and across the African continent in the transition to climate-friendly, low-emission economic development.

KEPSA Global Director of Youth and Employment, Ehud Gachugu, said Kenya has significant potential to leverage carbon finance to accelerate decarbonization efforts and enable the development of sectors such as clean energy and climate-smart agriculture, creating new, sustainable economic opportunities for the country.

EcoSecurities will now become KEPSA’s preferred carbon asset management partner to unlock the potential of carbon finance in Kenya

“This collaboration will enable our private sector to effectively leverage carbon markets, supporting sustainable economic growth and helping us meet our climate commitments,” Gachugu said.

The agreement comes as part of Kenya’s efforts to achieve its climate goals, including reducing greenhouse gas emissions by 32% by 2030.

Under the agreement, private sector companies operating in critical sectors such as heavy industry, transport, waste, energy and agriculture will be able to access carbon finance through the rapidly expanding Art. 6 and voluntary carbon markets.

Kenya insists on reforms tailored to emerging carbon financing needs.

The recent amendment to the Climate Change Act (2023) and the introduction of the Carbon Markets Regulations (2024) are among efforts to encourage carbon finance as a tool to stimulate sectors such as clean energy and climate-friendly agriculture.

Deputy Secretary for Environment, Climate Change and Forestry Faith Njeri, who spoke on behalf of Principal Secretary Festus Ngeno, said carbon market initiatives should be aligned with Kenya’s development priorities and contribute significantly to poverty reduction, gender equality and social inclusion.

“The partnership between EcoSecurities and KEPSA is a great example of how we can leverage collaboration to drive impactful climate action. By working together, we can mobilize resources, share expertise and scale projects that deliver real, tangible benefits for our people and our planet,” said Faith.

EcoSecurities CEO Pablo Fernandez said they will use the full potential of carbon markets in a way that ensures sustainable economic development