The Kenyan government has unveiled an ambitious plan to raise Ksh100 billion through green and climate bonds by the year 2027, signaling a major shift in how the country intends to finance agriculture and climate-smart development. The initiative, spearheaded by the National Treasury, aims to attract both local and international investors while supporting sustainable farming and environmental conservation.
According to documents seen by Mkulima Digital, the government plans to issue the bonds at attractive below-market interest rates ranging between 4 and 6 per cent. The bonds will have repayment periods of between five and ten years, making them appealing to long-term investors seeking stable and environmentally responsible investment opportunities.
What makes the initiative unique is that the bonds will be backed by revenues generated from carbon credits. This means Kenya hopes to monetize climate-friendly activities such as tree planting, conservation farming, renewable energy adoption, and reduced carbon emissions. The revenues earned from these activities will help support repayment of the bonds while also encouraging more climate action across the country.
The move comes at a time when Kenya is pushing for greener agricultural practices amid rising concerns over climate change, drought, and food insecurity. Agriculture remains one of the country’s biggest economic pillars, employing millions of Kenyans directly and indirectly. However, unpredictable weather patterns and declining soil productivity have continued to threaten food production.
Through the green financing strategy, the government hopes to channel funds into irrigation projects, sustainable farming technologies, agro-processing, afforestation, and climate resilience programs aimed at improving productivity and protecting farmers from climate shocks.
If successfully implemented, the program could position Kenya as one of Africa’s leading countries in green financing and climate-smart agriculture. Analysts believe the initiative could also open doors for private sector partnerships and strengthen Kenya’s reputation in global climate investment markets.
