Kenya’s climate change goals serve as a symbol of tenacity in a world beset by environmental issues. Kenya has become a regional leader in the battle against global warming thanks to its unwavering commitment to lowering carbon emissions, developing renewable energy, and encouraging climate resilience. The nation’s hopes for the climate, however, are threatened by severe financial obstacles that lay under the surface of these commendable ambitions.
Kenya’s climate change adaptation goals integrate climate activities into strategy development, budgeting, and execution. It has been in place since 2013 and consists of two 5-year plans (2013-2017 and 2018-2022). This strategy offers the idea that Kenya’s climate change interventions are competent since it is supported by a national climate change mitigation policy.
The Climate Change Act 2016 also describes the institutional structures and supervisory responsibilities for administering and directing the nation’s climate change action programs. An in-depth examination reveals that Kenya’s present expenditure strategy will not enable it to achieve the environmental objectives set forth in Vision 2030, the nation’s long-term economic strategy for growth.
One cannot stress the importance of addressing climate change in Kenya. A nation’s agriculture, water supplies, and way of life are all significantly impacted by rising temperatures, changing weather patterns, and environmental degradation. The obstacles Kenya faces on its journey to climate resilience are numerous and complicated, despite the country’s persistent commitment to navigating this dangerous terrain and charting a sustainable future.
The money spent on adaptation is insufficient: Other development partners have reiterated that Kenya’s high spending on climate mitigation presents the country with the biggest obstacle to achieving its climate targets. This strategy runs counter to the nation’s major emphasis on adaptation. The country’s adaptation plan is expected to cost Ksh.6,775 billion (USD 48 billion) to achieve between 2020 and 2030. Additionally, according to the data that is currently available, just a third of the funding needed for investments connected to climate change adaptation was generated in 2018 (Ksh. 243.3 billion, or USD 1.7 billion). This equals a Ksh 486.6 billion (USD 3.5 billion) yearly resource shortfall.
According to budget projections for the fiscal year 2023–2024, the nation will spend 49% more on debt repayment, debt servicing, and pensions than it did the year before. Only 51% (Ksh. 1.93 trillion) of the expected Ksh. 3.79 trillion will be left for the national and county program budgets to be implemented.
Towns require greater funding for climate change: The second problem, according to the World Bank, is the underinvestment in local efforts to combat climate change. A commitment to combating climate change is demonstrated by the executive order creating a State Department for Environment and Climate Change within the Ministry of the Environment. Nevertheless, given that counties bring service delivery closer to citizens, this concentration should also be at the county level.
The central government still has a larger proportion of financial resources, even in areas where responsibilities have been devolved, hence the counties’ percentage of total government spending has decreased. Due to insufficient unbundling activities, there is an overlap in responsibilities, indicating that intergovernmental fiscal relations systems have not been implemented effectively. Locally driven efforts to increase climate resilience are a terrific concept, nevertheless, the Budget Policy Statement 2023 falls short because the majority of the suggested initiatives are focused on the national level.
An excessive emphasis on renewable energy: The third issue raised by the study is that Kenya’s climate change financing goals unfairly favor the renewable energy industry while underfunding other crucial industries such as agriculture, forestry and land use, transportation, and water management. The negative consequences of climate change on the sector could undo the progress made over the previous ten years because agriculture is essential for economic development, employment, and the alleviation of poverty.
The National Treasury reiterates that major efforts will be required to align all sectors and that existing financing unfairly favors some industries, which will only partially solve climate challenges. In 2018, the private sector spent Ksh 98.9 billion (USD 979 million) on climate-related projects, with 34.4% of that amount coming from Kenyan companies using their own cash and 65.6% coming from international private enterprises sponsoring domestic projects.
What can Kenya do, though, to lessen the financial difficulties posed by its climate change goals? It is admirable that Kenya is steadfastly committed to combating climate change through audacious targets and sustainable solutions. Enhancing the monitoring and reporting of climate money is the first step. This will make it easier to determine whether or not money is filling gaps and addressing climate needs. resulting in wise investment scaling up or down depending on need.
Ministries, state departments, agencies, and counties in Kenya can use a combined financial management and information system to report on climate-related expenses on a regular basis. A unified system will enhance reporting between players at all levels since coordination among actors is essential to the successful implementation of the national strategy.
