Carbon Trading in Kenya: Challenges and Opportunities

Purpose: The purpose of the study is to assess the current status of carbon trading in Kenya, identify the challenges inhibiting its growth, and evaluate the opportunities it presents for economic and environmental progress. Methodology: A mixed-methods approach was adopted, combining qualitative interviews with key stakeholders, such as policymakers, carbon project developers, and local community representatives, along with a quantitative analysis of carbon market trends and project performance data. Findings: The findings reveal significant barriers to the effective implementation of carbon trading, including weak regulatory frameworks, limited awareness among local communities, inadequate technical expertise, and challenges related to accessing international carbon markets. Despite these obstacles, the study highlights substantial opportunities, such as leveraging Kenya's abundant renewable energy resources, enhancing community participation in carbon offset projects, and tapping into global demand for certified emissions reductions. Unique Contribution to Theory, Policy and Practice: The study concludes that while carbon trading in Kenya remains underdeveloped, it holds considerable potential to contribute to climate resilience and economic growth if systemic barriers are addressed. Key recommendations include strengthening policy and institutional frameworks, enhancing capacity-building initiatives, improving access to financing for carbon projects, and fostering public-private partnerships to scale up investments in carbon trading. By addressing these challenges, Kenya can position itself as a leader in sustainable carbon market practices in Africa.