As climate change continues to affect Kenya through prolonged droughts, devastating floods, rising temperatures and declining agricultural productivity, billions of shillings are being invested to help the country adapt and build resilience.
These investments come from dozens of climate financing mechanisms that support projects ranging from renewable energy and sustainable agriculture to forest restoration, water conservation and climate-smart infrastructure.
Whether you are a clean-tech startup, a non-profit organisation (NGO), or a community-based enterprise, this guide breaks down the primary climate funds available in Kenya, categorised by focus area.
What Is Climate Finance?
Climate finance refers to financial resources dedicated to helping countries reduce greenhouse gas emissions (mitigation) and prepare for the impacts of climate change (adaptation).
The funding may take several forms, including:
- Grants
- Concessional loans
- Equity investments
- Technical assistance
- Guarantees
- Results-based payments
1. Green Climate Fund (GCF)
The Green Climate Fund is the world’s largest dedicated climate fund established under the United Nations Framework Convention on Climate Change (UNFCCC).
The fund supports the following focus areas:
- Climate adaptation
- Renewable energy
- Sustainable transport
- Climate-smart agriculture
- Water security
- Disaster resilience
- REDD+ carbon projects
In Kenya, it operates through accredited entities such as the National Treasury, the National Environment Management Authority (NEMA), KCB Bank, and Equity Bank.
GEF provides grants and co-financing for initiatives addressing biodiversity loss, land degradation, and climate change.
2. Global Environment Facility (GEF)
The Global Environment Facility has financed environmental projects in Kenya for more than three decades.
It provides grants and co-financing for initiatives addressing biodiversity loss, land degradation, and climate change.
Below is a comprehensive list of the Global Environmental Facility priority funding areas:
- Biodiversity conservation
- Freshwater ecosystems
- Food security
- Land degradation
- Forests
- Sustainable cities
- Ocean health
- Chemicals and waste
The Global Environmental Facility also lists countries, youth, women, civil society, indigenous peoples, and the private sector as key stakeholders.
It provides the following funding programs:
I. Least Developed Countries Fund (LDCF)
The Least Developed Countries Fund (LDCF) was established in 2001 under the United Nations Framework Convention on Climate Change (UNFCCC) and is managed by the Global Environment Facility (GEF) to help the world’s least developed countries adapt to the impacts of climate change.
It finances projects that strengthen resilience in vulnerable sectors such as agriculture, water resources, disaster risk management, infrastructure, ecosystems and food security, while supporting countries in implementing their National Adaptation Programmes of Action (NAPAs) and National Adaptation Plans (NAPs).
The fund also helps build national and local institutional capacity, encourages innovation and private-sector participation, and promotes policies that integrate climate adaptation into development planning.
As of mid-2024, the LDCF had approved 423 adaptation projects worth nearly US$2.1 billion in grants, directly benefiting more than 74 million people and improving the climate resilience of over 14 million hectares of land.
II. Special Climate Change Fund (SCCF)
The Special Climate Change Fund (SCCF) was established in 2001 under the United Nations Framework Convention on Climate Change (UNFCCC) and is managed by the Global Environment Facility (GEF) to help developing countries adapt to the impacts of climate change.
Unlike the Least Developed Countries Fund, the SCCF is accessible to all developing countries, with a particular focus on supporting Small Island Developing States (SIDS), promoting climate adaptation technologies, innovation and private-sector engagement.
The fund finances projects that strengthen resilience in sectors such as agriculture, water resources, disaster risk management, climate information systems, public infrastructure, coastal management and health, while encouraging the integration of climate adaptation into national development planning.
Since its inception, the SCCF has approved more than US$405 million in funding for over 100 projects across more than 100 countries, benefiting millions of people and advancing climate-resilient technologies and sustainable land management.
III. Global Biodiversity Framework Fund (GBFF)
The Global Biodiversity Framework Fund (GBFF) was established by the Global Environment Facility (GEF) in 2023 following the adoption of the Kunming–Montreal Global Biodiversity Framework at the Convention on Biological Diversity (COP15).
The fund is designed to help developing countries finance projects that conserve biodiversity, restore degraded ecosystems and strengthen national biodiversity policies, governance and resource mobilisation.
It also places a strong emphasis on supporting Indigenous Peoples and local communities, with a target of directing at least 20% of its funding to biodiversity actions led by these groups.
Since its launch, the GBFF has attracted hundreds of millions of US dollars in pledges from donor countries (including Austria, Canada, Denmark, France, Germany, Japan, and Luxembourg) and is rapidly expanding support.
3. Adaptation Fund (AF)
The Adaptation Fund finances projects that help vulnerable countries adapt to climate change.
Kenya has used Adaptation Fund resources to support projects involving:
- Water harvesting
- Drought resilience
- Climate-smart agriculture
- Ecosystem restoration
- Community resilience
The National Environment Management Authority (NEMA) serves as Kenya’s National Implementing Entity for Adaptation Fund projects.
4. Climate Investment Funds (CIF)
The Climate Investment Funds (CIF) is one of the world’s largest multilateral climate finance mechanisms. Established in 2008 at the request of the G8 and G20, it pilots and scales low-carbon, climate-resilient solutions across low- and middle-income countries, including in Sub-Saharan Africa.
CIF operates in Kenya primarily through two main vehicles: the Scaling up Renewable Energy Program (SREP) and the Clean Technology Fund (CTF).
SREP targets technical, financial, economic, and social barriers in geothermal power using concessional lending. A key example is the Menengai geothermal project, where SREP absorbs exploration drilling to verify steam availability, thereby unlocking co-financing from multilateral development banks and private investors.
Through dedicated private sector channels, CTF injected $30 million into Kenya to scale up innovative investments in renewable energy technologies.
5. Financing Locally Led Climate Action (FLLoCA)
FLLoCA is Kenya’s flagship devolved climate finance programme.
Rather than funding projects directly from Nairobi, the programme empowers county governments and local communities to identify and implement climate adaptation priorities.
Co-funded by the Government of Kenya, the World Bank, and international partners like Denmark and Sweden, the programme runs from 2021 to 2027 to build grassroots climate resilience.
Some of the projects covered by the fund include:
- Water pans
- Irrigation schemes
- Boreholes
- Flood control
- Climate-smart agriculture
- Community forests
6. County Climate Change Funds (CCCFs)
Kenya’s County Climate Change Funds (CCCFs) are a groundbreaking devolved finance mechanism designed to deliver climate adaptation resources directly to vulnerable local communities.
Originally piloted in 2011 in Isiolo County, the mechanism expanded to four additional dryland counties (Garissa, Kitui, Makueni, and Wajir) and served as the foundational model for Kenya’s nationwide Financing Locally-Led Climate Action (FLLCA) program.
County governments enact CCCF legislation mandating a fixed percentage of their annual development budget (typically 1% to 2%) to be set aside for local climate adaptation.
Below is the allocation formula for this fund:
70% is earmarked directly for community-prioritised investments at the ward level.
20% is allocated for larger county-level investments.
10% covers administration, capacity building, and participatory planning costs.
