Private sector seeks more incentives to actualise green economy

Lack of appropriate incentives to the private sector will slow Kenya’s dream of a green economy. Industrialist Manu Chandaria says incentives from the Government have not been forthcoming, unlike in China and India that have fully supported private sector growth.

He however urged the private sector to show commitment to better utilise incentives.

“If you get all the incentives but don’t have the will, you won’t have the way,” Chandaria told the forum. He said the Governments of China and India have offered a lot of encouragement to their private sector players to get into green growth.

He was speaking at the Global Green Growth event themed ‘Enabling Green Growth in Africa’. The forum organised by the Kenya Climate Innovation Centre and the Danish Embassy in Kenya provided a platform for the stakeholders to discuss green growth and sustainable development.

Chandaria said the Government of India encourages installation of solar water heating systems in public places and pays off 25 per cent of the cost, noting the support has helped villages have solar heating systems. He urged the State to identify people investing in green growth and incentivise them.

Danish Ambassador to Kenya Geert Aagaard urged the private sector to make more investments in green technology. “Private sector players must know what the next four or five years will look like in terms of cost structure for energy, waste treatment and regulations for polluting the air, soil and water,” he said.

 “The cost of doing nothing will come back to us in terms of higher costs at a later time,” said Aagaard, noting that China, which has been one of the biggest polluters, has realised this and is making the investments in energy efficiency.

Eco-Tourism Kenya Chief Executive Grace Nderitu said Kenya hoteliers want to take part in sustainable environment but find the costs prohibitive. Her sentiments were echoed by Federation of Kenya Employers representative Stephen Obiro, who said the State ought to give the private sector the right “economic incentives”.

“As much as we would like to run away from it, the private sector is in business. They want to get into something that will make business sense to them,” said Obiro.

Dr Alice Kaudia, who spoke on behalf of the Ministry of Environment and Natural Resources Cabinet Secretary Prof Judy Wakhungu, said the State is still committed to making Kenya a green economy.