Kenya is in the process of setting up a Green Investment Fund in partnership with the World Bank.
In a statement, Principal Secretary State Department for Investment Promotion in the Ministry of Trade Abubakar Hassan on Wednesday, October 9, revealed that the government is in the process of setting up the Kenya Green Investment Fund in line with the Kenya Kwanza’s green transition agenda.
The Kenya Green Investment Fund which will be set up will have an initial seed capital of US$ 40 M (Ksh5.1 billion), according to the PS.
According to the state department of Investments, the initiative will help to define, structure, and package investment-grade green opportunities, aiming to attract the necessary investments into Kenya’s green growth sector.
PS Abubakar noted that the Fund is pursuant to President William Ruto‘s directive to develop a tool to incentivize pooling of green foreign investors.
“In line with our green transition agenda and pursuant to President William Ruto’s directive to develop a tool/vehicle to incentivize pooling of green foreign investors, in order to de-risk Kenya private sector investments in Green investment opportunities through equity co-investments,” said the PS in a statement.
While revealing details of the Fund, PS Abubakar said that the government is planning to scale it up to US$200 M seed capital.
Kenya Green Investment Fund
He met the Qatar Investment Authority Chief Investment Officer in charge of the African Region to pitch the Kenya Green Investment Fund while seeking a partnership to scale it up.
“Today accompanied by Kenya Ambassador to Qatar, I represent the CS Salim Mvurya to pitch the Green Fund to the Qatar Investment Authority (Sovereign Wealth Fund with almost US$ 500 B in Assets Under Management) Chief Investment Officer in charge of African Region, Mr. Faisal Thani Al -Thani seeking a partnership to scale up the Fund to US$200 M,” he added.
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This comes after President Ruto in September called on African leaders to attend the United Nations climate change conference later in the year in a united voice.
Ruto made the remarks during an Extraordinary Meeting of the Committee of African Heads of State and Government on Climate Change (CAHOSCC) on the sidelines of the 79th Session of the United Nations General Assembly in New York.
Ruto at UNGA
The head of state, who is also the CAHOSC chair, said Africa’s agenda at COP29 in Baku, Azerbaijan, should be to push for a new and equitable climate financing mechanism, noting that the new financing must match the urgency and scale of the climate crisis and adequately address the needs of Africa and other developing nations.
Ruto further said Africa must push for an increase in global investment in energy transition from the current 3% to effectively support climate adaptation.
The President said meaningful investments in Africa’s resources, whether in renewable energy, sustainable agriculture, green transport or nature-based solutions, are key to ensuring effective climate adaptation.
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“Today, we are aligning our position for the COP29 in Baku, Azerbaijan, in November. This meeting serves as a strategic step in our preparations,” he said.
“These investments will enable low carbon, climate-resilient development, not only for Africa but also for the global community.”
Green Climate Fund
Apart from the Kenya Green Investment Fund, Kenya is a beneficiary of the Green Climate Fund (GCF), a global fund created to support the efforts of developing countries to respond to the challenge of climate change.
GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change.
It seeks to promote a paradigm shift to low-emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts.
The National Environment Management Authority (NEMA) got accredited as an Implementing Entity under Direct Access with Green Climate Fund (GCF) in March 2016.
NEMA is one of the 33 institutions globally authorized to carry out GCF projects.
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