Assessment of Nature-Related Financing and Investment Opportunities in Kenya

Realized in East Africa, Kenya

The Kenya Bankers Association (KBA), in line with its Sustainable Finance Initiative (SFI), seeks to explore and identify nature-related financing and investment opportunities for the Kenyan banking sector. Rebel has been asked to write a report that explores the opportunities for nature-related financing and investments and the enabling conditions required to foster a thriving nature-positive economy in Kenya.

The challenge

Home to over 35,000 species of flora and fauna, Kenya has a large diversity of ecological zones and habitats, including forests, grasslands, wetlands, and marine ecosystems, all of which significantly contribute to the country’s economy through agriculture, tourism, fisheries, and energy production. Approximately 42% of Kenya’s GDP comes from natural resources, making the country’s economy highly dependent on the sustainable use and preservation of a healthy environment. At the same time, millions of people are already exposed to the effects of nature and biodiversity loss. Banks can contribute to reversing the trend with financing for projects and companies that contribute to halting and reversing nature loss, however, despite the significant opportunity, a number of risks and barriers continue to hinder the flow of private sector finance.

The report offers an assessment of investable nature-related sectors in Kenya, insights into the availability of financial and investment instruments, and examples of nature-related business models. It also includes an assessment of projects and inspiration to build a pipeline of projects that can contribute to nature-positive outcomes, as well as guidance on nature-related risks and their financial impacts. The findings aim to guide stakeholders – particularly financial institutions – in unlocking the economic potential of nature while contributing to biodiversity conservation and the sustainable management of natural ecosystems.

Based on the recommendations of the report we have developed a Nature Proposition that offers a targeted, action-oriented approach for banks to integrate nature considerations into their decision-making – from strategic planning to internal capacity-building, to doing actual transactions and building up a nature portfolio of loans. We initially target banks in Kenya but are eager to roll-out our work on the African continent.

Impact

The report underscores the vast - yet largely untapped - potential of nature-related finance and investment opportunities, while outlining clear pathways for the financial sector to support the development of a thriving nature-positive economy in Kenya.

Unlocking Kenya’s Potential: Driving Private Capital for Nature and Economic Growth

"Through the study we have showed that with the right enabling environment - spanning supportive policy and regulatory frameworks, financial innovation, and enhanced capacity within financial institutions - Kenya has the potential to become a regional leader in mobilising private capital for nature. The Kenyan financial sector can generate not only strong economic returns but also meaningful environmental impact by restoring ecosystems, reversing nature loss, and setting nature on a path to full recovery by 2050."

Norika Salih