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This report explores how Green FinTech is helping Kenya adapt to climate change through tools like parametric insurance, carbon wallets, and green bonds. Highlighting innovations by firms such as Pula, M-Kopa, and Equity Bank, it shows how digital finance is driving climate resilience and sustainable development.
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Green FinTech can play a crucial role in scaling climate adaptation in Kenya by providing innovative financial solutions that promote climate resilience and sustainable development. By merging digital technology with climate adaptation, solutions like climate-smart Agri-insurance, blockchain-powered carbon wallets, and tokenized green bonds are helping mobilize capital, reduce risk, and unlock new revenue streams in Kenya and beyond. This report explores the potential of Green FinTech in Kenya, highlighting startups and financial tools that merge fintech and climate resilience, and showcasing fresh approaches to addressing climate change.
In Kenya, climate risks, especially in agriculture (which accounts for approximately 25% of GDP), underscore the need for scalable, data-driven insurance and financing models. The evolving regulatory environment (e.g., Carbon Markets Regulations, digital payments framework, IRA sandbox) and improved connectivity provide fertile ground for Green FinTech solutions.
Climate change poses significant risks to Kenya's economy, with estimated losses of up to 2.6% of GDP by 2030.
Climate Risk in Kenya: In Q1 2025, agriculture contributed approximately 19.1% to Kenya’s total GDP at constant prices; Eastern/Southern Africa face drought risks; parametric crop insurance uptake is growing.
FinTech Growth: Kenya leads Africa in mobile money; M-Pesa covers 80% of adults; digital insurance and microloans are on the rise.
Green FinTech Pioneers:
Tera (Kisumu): Converts sugarcane bagasse to biochar; issued credits via blockchain registry “Riverse”; target 450K t biochar by 2030.
Pula, ACRE Africa: Weather-indexed crop insurance with parametric payouts.
M-Kopa Solar's Green Bonds: M-Kopa Solar has issued over $10 million in green bonds, financing solar energy projects that provide clean energy to off-grid households and reducing carbon emissions.
Equity Bank's Climate-Resilient Savings: Equity Bank's climate-resilient savings product has helped over 100,000 customers save for climate-related emergencies and access credit for climate-resilient agricultural practices.
Agri-Insurance: Startups like Pula and Agricultural Insurance Company of India (AICI) offer index-based insurance products that protect farmers against crop failures and livestock losses due to climate-related events.
Carbon Wallets: Safaricom's carbon credit platform allows individuals and businesses to trade carbon credits, promoting sustainable practices and reducing greenhouse gas emissions.
Green Bonds via Blockchain: M-Kopa Solar has issued green bonds using blockchain technology to finance solar energy projects, providing clean energy to off-grid households and reducing carbon emissions.
Climate-Resilient Savings: Equity Bank's climate-resilient savings product allows customers to save for climate-related emergencies, such as droughts or floods, and provides access to credit for climate-resilient agriculture practices.
Digital Climate Information Platforms: aWhere provides hyper-local weather forecasts and climate data to farmers, enabling them to make informed decisions and adapt to climate change.
Green Credit Scoring: Credit info has developed a green credit scoring system that assesses borrowers' environmental and social risk profiles, enabling lenders to make informed decisions and promote sustainable practices.
Sustainable Investment Platforms: Nabo Capital offers a sustainable investment platform that allows individuals and institutions to invest in ESG-compliant assets, such as green bonds and impact funds.
Mobile-based Distribution is Critical: Integration with Mobile Network Operators (MNOs), facilitates distribution, data collection, and automatic premium/payment flows via mobile money.
Regulatory & Ecosystem Enablers: IRA’s sandbox and Carbon Markets Association of Kenya CAMAK/CMA frameworks allow experimentation; digital registry for carbon credits and clearer ESG tax incentives strengthen investor confidence.
Develop ESG guidelines and regulations to encourage Green FinTech innovation and investment in Kenya.
Establish a Green FinTech hub to foster collaboration, knowledge sharing, and innovation among startups, financial institutions, and regulators.
Provide capacity building and training programs for financial institutions, startups, and regulators to enhance their understanding of Green FinTech and ESG principles.
Encourage investment in Green FinTech through incentives, such as tax breaks, subsidies, or grants, to support the growth of innovative startups and financial products.
Invest in blockchain-enabled carbon wallets, tokenized green bonds, and interoperable data platforms (e.g., weather stations, IoT sensors) to enhance transparency, financing access, and accurate climate modeling for Kenyan sustainability projects.
Tera / “Riverse” Blockchain Registry press releases, 2025
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