- Climate change is costing Kenya 3 to 5 per cent of GDP.
- Kenya faces an 87 per cent climate funding gap.
- KDC plans to launch a green fund for sustainable businesses.
Kenya is rethinking its funding for green energy after the country’s estimates suggested a drop in its Gross Domestic Product owing to climate change.
The estimates indicate the country is losing between 3 percent and 5 percent of its Gross Domestic Product due to climate change, a phenomenon reshaping the world’s landscape.
Global experts warn that if governments fail to invest more in environments supporting green innovations, the coming years may present serious problems, considering the world is currently under siege.
“The world needs about $4 trillion annually to combat emerging climate change challenges, while Kenya requires about $62 billion every year. Out of the $62 billion required, Kenya, through the National Treasury, can only raise about 13 percent of the necessary resources, leaving an 87 percent funding gap,” said the global climate change experts.
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Following the realisation, the country’s Development Funding Institutions (DFIs) are now being called upon to step in and prioritise green initiatives.
The country’s single largest DFI, the Kenya Development Corporation (KDC), has announced plans to establish the country’s first green fund in the coming months, offering critical solutions to environmentally friendly businesses that have long lacked access to funding.
According to the National Treasury, funding has been the missing link, and the entry of cooperative societies and DFIs will play a critical role in accelerating growth and providing a platform for more institutions to contribute to the country’s development.
Environment and Climate Change Principal Secretary (PS) Eng. Festus Ng’eno insisted governments can no longer ignore climate change, as these changes are now informing policy directions.
Consequently, access to funding, as noted by KDC Director General Norah Ratemo, presents a panacea for the fast evolving changes that demand apt investments in innovations, especially regarding carbon emissions.
She notes that despite great ideas existing, the funding gap has been the missing link.
The key speakers, alongside key industry players, spoke at the KDC new products and services launch as well as the sustainability and green financing strategy event in Nairobi.
By John Majau
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