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  • Writer's pictureAnzetse Were

The Green Investment Opportunity in Kenya: Insights and Projects

On April 25th, FSD Kenya launched the results of the county green finance assessment on the green investment opportunities that exist across 10 counties in Kenya. This assessment is the first of its kind. Anzetse Were designed, led, co-authored and supervised the assessment. 

During the launch, Governors and Deputy Governors from several counties spoke and received the reports on behalf of their counties. Key remarks were delivered by Peter Odhengo representing the Principal Secretary of The National Treasury Kenya, Dr Chris Kiptoo, and Leigh Stubblefield the UK Deputy High Commissioner and Development Director to Kenya.

The assessment was done with the approval of The National Treasury and Economic Planning and in partnership with Agusto & Co.; the Capital Markets Authority; ADA Consortium and the Nairobi Securities ExchangeThe 10 counties assessed are Embu, Kirinyaga, Kisumu, Laikipia, Nairobi City, Makueni, Nandi, Taita-Taveta, Vihiga, and Wajir.

Anzetse Were engages Her Excellency Cecily Mbarire EGH, Governor of Embu County and key county officials on the county green finance assessment. She is seated next to the CEO of FSD Kenya, Tamara Cook.

Key Findings

  • The economic and fiscal profile of counties assessed revealed strengths and challenges. Strengths documented in the assessment include stable political environments in the counties; youthful populations; high mobile banking penetration levels and a market with the presence of alternative financing options. Shared challenges include that most counties assessed represent a relatively low contribution to Kenya’s GDP as individual units and have fairly undiversified economies. They also all demonstrate a significant dependence on the exchequer, have low own source revenue and low compliance with the Public Finance Management Act. 

  • In terms of the credit risk profiles of the counties assessed, they fall within the range of medium to high-risk profiles with limited financial flexibility and low fiscal autonomy including a high level of pending bills. 

  • The assessment of the overall status of green finance capabilities demonstrated a presence of climate change laws in all counties assessed, and the presence of additional county laws to support implementation of green activities (such as acts related to water and sanitation, waste management etc). There is also a growing knowledge on climate finance and sustainable practices but this needs to be strengthened. Further, counties have expressed an openness to creative green financing structures and have the opportunity to deepen access to the FLLoCCA county climate funds. 

  • The top green finance sectors for the 10 counties assessed include: Agriculture and livestock; Water and sanitation; Public infrastructure; Waste management; Renewable energy; Healthcare; Eco-Tourism; Green buildings and housing; Forestry; Natural resource management; Urban development; and Green trade and industrialisation.

Aggregated analysis demonstrates that green finance potential in counties also resides in county clusters:

Here is a snapshot of the types of green investment opportunities that were unearthed in the counties assessed:

The insights from the assessment will be actioned through the County Green Project Preparation Facility, which Anzetse Were also designed. Priority green projects will be prepared through the facility to access the green finance market through a range of instruments as detailed below:

FSD Kenya has selected PwC Kenya to manage the facility. The United Kingdom has pledged £ 6.6 million to initiate the development of 50 green investment projects through the facility among other activities.

Click on the image to read the summary insight report below:

Specific reports and factsheets for the counties below:


Embu County


Kirinyaga County


Kisumu County


Laikipia County


Makueni County


Nairobi City County


Nandi County


Taita-Taveta County


Vihiga County


Wajir County


Watch the Livestream of the Launch Below:


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