NAIROBI, Oct. 3 (Xinhua) -- The Kenyan government is turning to the private sector to mobilize financing for the country's green transition, senior officials said Thursday.
Prime Cabinet Secretary Musalia Mudavadi, who is also the cabinet secretary in the Ministry of Foreign and Diaspora Affairs, emphasized the importance of industry in scaling up green financing, especially given the current financial pressures on public funds and limited external support.
Speaking during the launch of the Absa Kenya Foundation in Nairobi, the Kenyan capital, Mudavadi said that Kenya aims to partner with the private sector to fund climate action initiatives.
The commercial Absa Bank Kenya will contribute 1.5 percent of its annual earnings to the foundation, starting with 500 million shillings (about 3.88 million U.S. dollars) as seed funding toward transformative projects that will be implemented through strategic partnerships to address major societal and environmental issues.
Kenya needs 65 billion dollars from 2020-2030 to implement its climate strategies outlined in the Paris Agreement, but currently faces an annual funding gap of 1.53 billion dollars, according to the Ministry of Environment, Climate Change, and Forestry.
Mudavadi highlighted the need for private sector investment in areas such as renewable energy, reforestation, and marine conservation, stressing that joint efforts could significantly boost climate resilience.
Mudavadi was echoed by Aden Duale, cabinet secretary in the Ministry of Environment, Climate Change, and Forestry, who said Kenya has developed a comprehensive strategy to promote climate financing by leveraging partnerships with businesses across key sectors like agriculture, manufacturing, new energy, transport, and tourism.
Duale urged the financial services sector, including banks, microfinance institutions, insurance, and pension funds to invest in green projects to build a sustainable, prosperous, and resilient future for local communities.
