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  • 25 Oct, 2025
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Climate

AI-Enabled Climate Risk Financing In Kenya

AI-Enabled Climate Risk Financing In Kenya

The integration of AI-powered parametric insurance in Kenya's agricultural sector is transforming how smallholder farmers manage climate risks. By using satellite data, IoT sensors, and predictive algorithms, insurers can automate risk assessment and enable faster, more accurate payouts tied to climate triggers such as drought or rainfall deficits.

Kenya’s Climate Shift: Clean Energy, Carbon Markets & ESG Developments

This report provides a weekly overview of key developments in Kenya’s clean energy transition, carbon credit market, and ESG efforts. It analyzes policy shifts, project highlights, innovation trends, and sustainability challenges shaping Kenya’s green economy. Aimed at decision-makers, researchers, and investors, it delivers actionable insights for driving climate-resilient growth.

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Fraud risks in carbon markets and mitigation strategies

This study highlights widespread fraud risks in Africa’s carbon credit markets, including data manipulation and greenwashing, as exposed in the $100M C-Quest Capital scandal. It emphasizes weak regulation, lack of oversight, and community harm, while recommending stronger verification, transparency, and tech-enabled solutions to build credibility and investor confidence.

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Opportunities and Threats in Kenya's emerging carbon trading landscape

Kenya's carbon trading landscape offers vast potential through renewable energy, carbon farming, and blockchain transparency. However, regulatory uncertainty, limited capacity, and risks of fraud and exclusion pose challenges. Strategic policies and inclusive practices are essential to ensure equitable, efficient, and sustainable growth in the carbon credit market.

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Carbon farming and its profitability for local farmers

Kenyan farmers can boost profits and fight climate change through carbon farming, which enhances soil health and earns income via carbon credits. While promising, challenges include high startup costs, limited awareness, market access, and land tenure issues. Demand for credits is growing, creating new opportunities for sustainable agriculture.

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How carbon credits are being used to fund solar and wind projects in rural Kenya

Carbon credits are funding solar and wind projects in rural Kenya, reducing upfront costs, attracting investors, and supporting climate goals. Initiatives like SunCulture and KenGen show strong potential for sustainable energy access and community development. This presents a major opportunity for Kenya to expand renewable energy, empower communities, and attract climate-aligned investment.

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KENYA'S CARBON CREDIT INITIATIVES

Kenya leads Africa's carbon credit market with a strategic approach that transforms environmental conservation into economic opportunity. Through 20 diverse projects in forestry, clean energy, and agriculture, Kenya aims to generate 300 million carbon credits annually by 2030, potentially worth KSh700 billion, while ensuring local communities receive 25% of all revenues.

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