Private Sector and Climate Change

The private sector is the driver of Kenya’s economy and is increasingly playing a larger role in enhancing the country’s growth. Corporate leaders play an integral role in engaging on sustainable issues impacting their corporate bottom lines. While a small number of corporates are contributing to global warming and GHG emissions, many companies are playing a vital role in embracing green technologies mitigating and adapting to the impacts of climate change.

Companies are investing in sustainable practices to enhance the triple bottom line of People, Planet and Profit. More businesses are realizing that investing in sustainable practices is good for the economy and their bottom line.

Private sector participation in mitigating climate change is critical and has been acknowledged. According to the Landscape of Climate Finance in Kenya Report, 2020, public resources (from domestic and international providers) totaled KES 144.3 billion (59.4%) while investment from the private sector totaled KES 98.9 billion (40.7%). Of this, the domestic private sector contributed around 14%. This is less than half of the financing that Kenya needs annually to meet its targets set out in Nationally Determined Contributions (NDCs) which is approximately KES 677 billion. This gap can be bridged by mobilizing the private sector to include climate action in business strategy and operations as embedded in the Private Sector Strategy on Climate Change in Kenya.

This is the motive on which KCIC Consulting Limited (KCL) in partnership with Kenya Private Sector Alliance (KEPSA) and Kenya Association of Manufacturers (KAM) rallied corporate leaders in making commitments to climate change by signing a 10-point charter during the 1^st 4CK conference held in 2021 at Strathmore University. The 10-point charter was extracted from the private sector strategy on climate change developed through the GCF’s Readiness Support Project implemented by The National Treasury, FAO, and KEPSA.

The 4CK is a private sector-driven climate change conference that seeks to give the sector a voice in finding solutions for a global crisis. The inaugural conference held on 10^th November 2021, brought together over 50 organizations that made strategic resolutions embedded in the 10-point charter. Some of the notable outcomes of the conference included:

1. Institutionalization of a body to coordinate all climate change activities by the private sector. Climate Business Information Network (CBIN) was created for this purpose and is to be hosted at KEPSA
2. Awareness creation and capacity building of the private sector on existing and potential impact of climate change on businesses
3. Conducting research and sharing knowledge on opportunities presented by climate change to develop adaptation and mitigation solutions
4. Development of green financing services and products
5. Organizing multi-stakeholder policy dialogues and lobbying for friendly policies and regulations that will support private sector engagements on climate change at all levels.