A recent World Bank report highlights that major corporations including Netflix, Apple, and Shell are actively participating in Kenya’s burgeoning voluntary carbon market. This engagement underscores Kenya's position as a significant player in Africa’s carbon credit landscape, second only to the Democratic Republic of the Congo in issuance volumes.
View of a tree nursery in Kenya. Hongera Reforestation Project, DGB.
In 2022, Kenya issued 11 million voluntary (verified) carbon market (VCM) credits, showcasing the country's rich potential in climate finance, driven by projects that reduce emissions and promote sustainable development. Notably, these initiatives largely focus on forestry and land use, with significant contributions from local organisations like Wildlife Works Carbon and the Northern Rangelands Trust.
These projects often involve combatting deforestation and fostering sustainable grassland management, which is crucial in reducing CO2 emissions. Moreover, community-focused credits, particularly those linked to improved cookstoves, also play a pivotal role in Kenya’s carbon credit output.
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However, transparency issues persist, particularly concerning the pricing of these credits, which are typically negotiated bilaterally and remain undisclosed. This lack of clarity poses challenges in gauging the true market value of the credits.
The increased awareness of the environmental impact of various industries is driving the demand for carbon credits, which is a significant source of revenue for Kenya. This growing trend is supported by Kenyan President William Ruto and was a key topic at the recent COP28, emphasising the need for transparent and high-integrity carbon markets.
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In response to these needs, Kenya is advancing regulatory measures, including a proposal that mandates private companies to contribute 25% of their carbon credit revenue to the government. This initiative is complemented by plans to establish a national carbon registry to enhance market transparency and accountability.
As Kenya continues to attract global attention from tech giants to oil majors, its VCM is set to play a crucial role in the global efforts for nature conservation, turning environmental challenges into opportunities for sustainable development.
At DGB Group, part of our nature-restoration mission is rooted in the Mt Kenya and Aberdare regions, where our energy-efficient cookstoves serve a bigger purpose than mere tools in the kitchen. These stoves represent practicality and sustainability that are key to local traditions, designed to specifically address the needs of the communities we support. Our cookstoves not only reduce firewood use and indoor air pollution but also help conserve the surrounding forests by minimising deforestation. They translate into significant time and cost savings for those who traditionally gather firewood, like women and children, while fostering cleaner living conditions. Moreover, by manufacturing these stoves locally, we are able to offer numerous employment opportunities within the community.
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Our Hongera Reforestation Project, also in Kenya, represents a major initiative to rejuvenate areas previously diminished by human activities such as illegal logging, agricultural encroachment, development, construction, and firewood harvesting. This large-scale reforestation project focuses on replanting trees to revive these degraded lands. The project aims to restore natural ecosystems, protect biodiversity, enhance water security, and improve the overall quality of life for local populations.
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