Through the Sustainable Inclusive Business (SIB-Kenya), the Kenya Private Sector Alliance (KEPSA) has released a report dubbed “Change the Story: Developing a Local Carbon Market in Kenya”. The report describes the current situation, and reflects on the opportunities for a Kenyan carbon market.
This report is limited to the role of the Kenyan private sector in the voluntary carbon market (VCM) with a focus on nature-based solutions (NBS) in addressing global warming, biodiversity loss and deforestation. It is part of the Change the Story project by SIB-Kenya which focuses on NBS because of the extra benefits they provide to the conservation of biodiversity, the protection of landscapes, and community development.
The report shows massive potential for carbon sequestration, with growing global demand. However, the export-focused policy in Kenya leaves Kenyan companies in the dark about domestic offsetting options. Notwithstanding the ongoing debate about the benefits of the growing market for carbon credits, Kenya has virtually no legal framework that would restrict credits to be issued or bought, no taxation of credits nor the introduction of a mandatory carbon emissions market. Alternatively, the government has been noted to be strongly in favour of an active role of the private sector in reforestation and afforestation initiatives.