Enabling Conditions in Kenya

Favorable
AMBIGUOUS
UNFAVORABLE

Kenya

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Executive Summary

Kenya has three mangrove projects in the Voluntary Carbon Market (VCM) under the Verra and Plan Vivo standards, including the pioneering Mikoko Pamoja project. Additionally, the country hosts over fifteen other nature-based carbon projects. The Climate Change (Carbon Markets) Regulations, 2024, provide a comprehensive governance framework for developing carbon credit projects under compliance markets, the VCM, and Articles 6 of the Paris Agreement. These regulations require project authorization, adherence to community development agreements, annual social contributions, and robust Measuring, Reporting, and Verification (MRV) processes. Project developers must obtain approval from the Designated National Authority (DNA) and comply with extensive documentation
requirements, including Free, Prior, and Informed Consent (FPIC). A National Carbon Registry will be established in 2025 to track project authorizations, emissions reductions, carbon credit issuance, and benefit-sharing agreements. For land-based projects, including blue carbon projects, at least 40% of annual net earnings must be allocated to the communities involved. The Carbon Credit Trading and Benefit Sharing Bill is currently under discussion to further regulate benefit-sharing and carbon credit trading. Unauthorized carbon trading or misrepresentation may result in fines, imprisonment, or both. Kenya's legal and regulatory framework emphasizes its commitment to transparency, community involvement, and compliance within the carbon market.

In Kenya, mangroves are state-owned public forests managed by the Kenya Forest Service (KFS) or the Kenya Wildlife Service (KWS) in protected areas. Private or community ownership of mangroves is not permitted; however, the Forest Conservation and Management Act of 2016 allows for concessions and co/management agreements. Private entities can obtain concessions for nature-based carbon credit projects by conducting environmental impact assessments, holding public consultations, and developing a concession area forest management plan. Communities can engage in joint management agreements by forming Community Forest Associations (CFAs), creating a Participatory Forest Management Plan (PFMP), and signing a Forest Management Agreement (FMA) with
KFS or KWS. The government implicitly owns carbon rights in mangrove forests, which can be transferred through joint management agreements. Projects like Mikoko Pamoja and Vanga Blue Forest have secured communities' carbon rights via PFMPs, demonstrating pathways for community-based involvement in carbon credit initiatives. These arrangements ensure that communities can benefit from carbon projects while adhering to government regulations.

Overall, Kenya has favorable enabling conditions for the development of blue carbon projects. The country has experience creating blue carbon initiatives and has clear mangrove land tenure and carbon rights. Recent regulations set the requirements for all carbon trading projects, facilitating the participation of these projects in the Voluntary Carbon Market.

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