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Kenya has steadily positioned itself at the forefront of climate action in Africa by moving towards a structured legal and institutional framework for carbon and climate finance. The key constraint across emerging economies has been the absence of clear host-country frameworks capable of giving investors confidence in how projects are approved, governed and monetised. Kenya is increasingly addressing that gap through a framework that brings greater clarity on project pathways, stakeholder requirements, benefit-sharing obligations and regulatory oversight, creating a more defined basis for investor participation.
For venture capital and private equity investors, the opportunity does not follow automatically from the existence of a carbon markets framework. Rather, it follows from understanding what the framework enables, where the institutional machinery is still bedding in, and identifying and capturing the opportunities emerging within it.
This article considers the opportunities arising from Kenya’s increasingly mature carbon market framework, the key legal and regulatory considerations relevant to investors, and the associated risks that may influence investment outcomes.
Click here to download and read the full article.
Should you have any questions regarding Kenya’s carbon market economy, please do not hesitate to contact Dominic Rebelo, Kabu Karanja or Eden Gatuiku.
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This article was first published in AVCA’s Legal and Regulatory Bulletin, Issue 12.