Debt burden leaves climate-hit counties with less room to respond

A woman fetches water from a shallow well dug into a dry riverbed in Samburu, a routine in Kenya's drought-hit counties where communities travel long distances daily in search of water. [File, Standard]

Kenya's most drought-hit counties face climate shocks as debt pressures limit the resources available for climate action, a new report shows.

The report by ActionAid International found that climate-vulnerable countries spend nearly 25 times more on debt repayments than on climate action, with debt servicing taking up 65 per cent of their combined government revenue.

Titled Debt Fuels the Climate Crisis: How the Finance Flows, the report examined public revenue, debt repayments, national budgets and climate plans across 65 climate-vulnerable countries.

It found that 93.5 per cent of the countries are either in debt distress or face a significant risk of falling into debt distress.

Countries in the Global South are expected to pay about US$8.8 trillion (about Sh1.14 quadrillion) in debt repayments in 2026, compared with the latest available US$39 billion (about Sh5.05 trillion) in grant-based climate finance in 2024.

That means debt repayments are about 225 times higher than climate grants, according to the report.

ActionAid Kenya works in Kajiado, Baringo, Isiolo, Turkana, Marsabit, West Pokot, Wajir, Elgeyo Marakwet and Garissa, as well as farming communities in Kilifi and Taita Taveta.

The organisation said communities in these areas face recurring droughts, changing rainfall patterns and declining livelihoods.

ActionAid Kenya Executive Director Samson Orao said communities facing the worst effects of climate change often have limited access to predictable climate finance.

“Communities experiencing the worst shocks of climate breakdown are contributing the least to global emissions, yet they remain structurally excluded from predictable and accessible climate finance,” said Orao.

“When governments are forced to choose between servicing predatory foreign debt and protecting their citizens from famine and climate displacement, justice fails,” he added.

The report says debt cancellation could create fiscal space for climate action in vulnerable countries.

It estimates that cancelling debt could provide enough resources to fund basic national climate plans six times over. It could also cover current spending on climate, health and social protection twice over.

ActionAid Kenya is calling for debt cancellation, increased grant-based climate finance and changes to global financial flows to increase resources for climate adaptation and locally led solutions.

The organisation also wants women, young people and marginalised groups to have a greater role in climate decision-making and resource allocation.

It called on the Kenyan Government, regional bodies and international financial institutions to create more fiscal space for climate resilience, public services and social protection.