Establishing a Strong Legal Backbone: Kenya has established a robust legal framework for carbon markets through its Climate Change Act CAP 387A. The 2016 Act was amended in 2023 (Amendment Act No.9 of 2023) to provide for legal and institutional arrangements for carbon markets. Further, to operationalize the Act, Kenya developed the Climate Change (Carbon Markets) Regulations, 2024 to provide for a framework for development and implementation of carbon projects in both compliance and voluntary carbon markets. These regulations clearly define participation rules, approval processes, environment and social safeguards, benefit-sharing mechanisms, and integrity requirements, providing a solid foundation for market activities. Further, in compliance to the Climate Change Act CAP 387A, the country is developing 3 other regulations to fully operationalize the cooperative approaches. These are – National Carbon Registry regulations, Carbon Trading Regulations and Non Market Approaches Regulations.
Further, on 12th June, 2024 vide a Gazette Notice No. 7621 of 2024, the Cabinet Secretary for Environment, Climate Change and Forestry gazetted the National Environment Management Authority (NEMA) as the Designated National Authority (DNA) for market mechanisms and any other mechanisms deriving from Article 6 of the Paris Agreement as per the provisions of section 8 (2A) of the Climate Change Act, Cap 387A, Laws of Kenya. The DNA undertakes its mandate with the technical advisory support of the Multi-Sectoral Technical Committee on carbon markets which was also gazetted as per the provisions of Regulation 9 of the Carbon Markets Regulations. This gazettement was done on 22nd November 2024.
Focusing on Governance and Community Benefit: Implementation efforts have centered on ensuring effective market governance and investor certainty. A key priority has been aligning project pipelines with Article 6 principles while guaranteeing that community benefits remain central to all carbon market activities, ensuring local populations share in the rewards.
Shifting the Project Pipeline: With clear rules now in force for both Article 6 cooperative approaches and voluntary activities, Kenya’s project pipeline is shifting towards higher-integrity methodologies. This is particularly evident in all mitigation sectors namely energy, transport, agriculture, forestry and land use, Industrial Processes and Product Use and Waste Management. The current project pipeline covers a wide range these sectors including clean energy generation, energy efficiency in both domestic and industrial sectors, electric mobility, nature-based solutions and waste to energy solutions all under closer host-country oversight to ensure transparency, additionality, and durable outcomes.
Unlocking Results-Based Finance: The regulatory clarity is designed to catalyze investment by unlocking results-based and blended finance for bankable projects. This requires an emphasis on stronger due diligence, robust Monitoring, Reporting and Verification (MRV) systems, and environment and social safeguards to attract credible capital that delivers high quality high integrity carbon credits.
Kenya is positioning itself as open for high-integrity climate investment under clear rules, with credibility, sustainability, and community benefits at the heart of its approach.
Focal Points and Assistants
