Kenya to roll out fiscal incentives to boost green financing

Kenyan Coat of arms
Coat of arms

Kenya will roll out new fiscal incentives to attract private capital into projects that promote climate resilience alongside just and inclusive recovery from COVID-19 pandemic, Ukur Yatani, National Treasury and Planning cabinet secretary said in Nairobi during a virtual Kenya-European Union (EU) green diplomacy conference on Tuesday.

The conference was held to discuss cooperation to advance green transition and sustainable recovery in East Africa’s largest economy. Yatani said the Kenyan government will incentivize the private sector to invest in the green economy through tax waivers and friendly regulations.

Yatani said that Kenya has in the past decade developed policy and legislative tools to facilitate the mobilization of funds from diverse sources and implement green projects across key sectors of the economy.

He said the National Treasury has created a system for monitoring, coding, tracking and reporting green funds in order to enhance transparency and accountability. And the establishment of the Kenya Green Investment Bank is in the works to facilitate mobilization of additional funds to support climate change adaptation at the grassroots level.

Yatani said Kenya will operationalize the Nairobi International Financial Center Authority to make Nairobi a formidable center for attracting green investments and green private capital into the region.

The government will eliminate cumbersome regulations that have stalled investments in green projects, adding that green debt swap will enhance re-directing of savings towards low-carbon emission initiatives.

Yatani said the launch of sovereign green bonds slated later in the year will stimulate investments in projects that strengthen climate resilience among local communities.

Patrick Njoroge, Governor, Central Bank of Kenya said that financial institutions have been encouraged to invest in projects that promote environmental sustainability and a speedy recovery from the pandemic. Enditem

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