The government has committed to climate financing by setting up a local financial programme to cushion Kenyans from the effects of climate change.
Announcing the 10-year programme dubbed the Financing Locally-Led Climate Action Programme, National Treasury and Planning Cabinet Secretary Ukur Yatani said that the programme will demonstrate the country’s concerted effort towards climate action.
In its 2022/2023 budgetary allocations released on Thursday, the government has set aside Sh6.1 billion to the programme.
“This will show our commitment in addressing climate change. The programme will support local communities to build their resilience and adapt to the effects of climate change in all the 47 counties,” said the CS.
Mr Yatani also announced that the government has finalised the drafting of a long-term low emission strategy which will help in guiding a low carbon climate resilience development path.
Cognisant of the challenge that is climate financing, the government has since set up a Climate Finance Mobilisation Strategy that will focus on that setback.
In the private sector, the government will promote its investments especially those in green projects and programmes.
To incentivise the private sector to go green on their products, a policy dubbed the National Policy Framework on Green Fiscal Incentives and the development of carbon will be fast-tracked.
Acknowledging the risk of climate change in other areas such as the banking sector, the CS, while reading the budget, said the Central Bank of Kenya has since issued a detailed guidance on climate-related risk to all commercial banks.
“Banks are now required to integrate climate-related risks into their overall risk management frameworks,” said the CS.
The country is yet to meet its 10 per cent minimum forest cover target as the latest economic survey released last year showed the cover was only at 7.2 per cent.
“The government is revitalising efforts to meet this important target through resource mobilisation with partners, and engagement with counties to dedicate more areas and resources under the forestry regimes, as well as tackling the catchment degradation that has contributed to the rising lakes phenomenon,” said the CS.
A further Sh147 million has been set aside for climate-smart agriculture in the 2022/2023 financial year.
The impacts of climate change are already being felt in the country, with drought in some areas.
To cushion that, Sh850 million has been set aside for drought resilience and sustainable livelihood, as well as an additional Sh178 million for ending drought emergencies in the country.
