Working Paper 242
Kenya has strengthened its climate change commitments through ambitious emission reduction targets and sector-specific climate action plans. The achievement of these goals is dependent on whether fiscal policy supports or undermines climate ambition. This paper assesses the coherence of Kenya’s fiscal policy with national climate objectives through an analysis of climate-related fiscal measures from 2015 to 2024. Drawing on policy analysis and stakeholder interviews, it evaluates the extent to which fiscal measures align with, contradict, or remain neutral towards national climate objectives.
The study finds that Kenya’s fiscal framework broadly supports climate action, but remains uneven and inconsistent. While many fiscal measures align with climate priorities, competing socio-economic objectives, and fragmented and unstable fiscal measures, weaken coherence in practice. Public expenditure increasingly supports adaptation, whereas tax measures are more heavily focused on mitigation. The paper highlights the need for more stable, coordinated, and climate-responsive fiscal policies to strengthen Kenya’s transition towards a resilient and low-carbon development.
