Kenya needs about $85 million annually in the short term for green projects in agriculture, transport and manufacturing, and as much as $888 million annually during the following five to 10 years, according to a banking industry lobby.
The financing is needed to counter the effects of rapid climate change that could erase about 2 percent of economic growth if left unchecked, according to a Kenya Bankers Association study. East Africa’s biggest economy plans an inaugural green bond in the first quarter of 2019.
Farming output, which contributed more than 35 percent of gross domestic product in 2017, requires $35.5 million annually in the next two years for climate-smart projects. The amount could rise to $182 million annually in the following five to 10 years, KBA said.
Manufacturers need $44 million annually during the next couple of years, and as much as $107 million per year in the coming decade for renewable energy, waste management and agro-processing, according to the report. Transportation may require $610 million per year for projects including a city rail and a bus rapid-transport system, the lobby group said.