Kenya secures Sh45b funding to support local climate action

Treasury Cabinet Secretary Njuguna Ndung'u. [Edward Kiplimo, Standard]

The National Treasury has secured Sh45 Billion (USD297 million) to finance locally-led climate actions in counties.

Cabinet Secretary of the National Treasury and Economic Planning, Njuguna Ndung'u, said at the COP28 during the Financing Locally Led Climate Action (FLLoCA) side event.

"We have managed," he declared, revealing the diverse sources contributing to this ambitious initiative.

The financial backing includes substantial commitments from different entities, with the World Bank providing USD 150 million, Denmark (Danida) contributing USD 8.9 million, and Sweden (SIDA) pledging USD 14.4 million.

Germany (KFW) is on board with USD 33.7 million, the Netherlands with USD 10 million, and the Government of Kenya allocating USD 5 million.

Additionally, all 47 counties have collectively committed USD 75 million, highlighting a broad-based collaboration.

National Treasury facilitated a significant move by transferring USD 8.9 million to the counties for the FLLOCA County Institutional Support Grant.

The momentum continued at the Africa Climate Summit in September where the President launched the County Climate Resilience Investment Grants of USD66.3 million.

"The imminent implementation of the FLLoCA program by county governments signifies a monumental step forward," affirmed Cabinet Secretary Ndung'u.

He added: "It signifies our collective determination to transform our climate change challenges into opportunities for growth and sustainability."

Against the backdrop of the worst drought in 40 years, impacting over 4 million Kenyans and causing severe consequences, the urgency of effective climate finance strategies became evident.

"It is so critical that we make sure that climate finance reaches vulnerable people on the ground where the devastating impacts are already being felt," emphasised Ndung'u.

Festus Ng’eno, the Principal Secretary of the Department for Environment and Climate Change said: "The program's distinctive feature lies in the participatory climate risk assessment."

Ng’eno explained, "where communities at the ward level identify priority actions for climate funding. This methodology strongly aligns with the Government’s commitment to a transformative bottom-up agenda."

Ng’eno underscored the rapid scaling up of climate finance from different donors, raising an impressive USD 297 Million in just two years, including contributions from County governments.

"This is a positive signal that can further stimulate resource mobilization going forward," he remarked.

Addressing the broader perspective of climate change, Ng’eno stressed the importance of coordination, recognising that climate change transcends sectors and impacts all areas of society. He asserted that effective coordination is crucial for uniting everyone towards a common goal.

Wilber Ottichillo, Governor Vihiga and Chairman of the Environment  and Climate Change Committee, Council of Governors said The FLLoCA Program has emerged as a beacon, designed to encourage cross-agency collaboration and vertical linkages from the community level up to the national level, addressing climate change comprehensively

Ottichillo underscored the important role of financial support in helping communities adapt to climate impacts, preventing climate change from pushing millions into extreme poverty.

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