Aligning Kenya’s Financial System with Inclusive Green Investment : Current Practice and Future Potential to Mobilize Investment in a Sustainable Economy

Kenya’s fast-growing economy is the largest in East Africa, and serves as a trade and investment hub for East and Central Africa. While the economy is diversifying, it remains largely dependent on natural resources. Agriculture and tourism account for nearly half of gross domestic product (GDP).This report aims to promote inclusive green investment in Kenya. It focuses on policy, structural, and investment innovations across the economy and financial sector that would increase capital flows that support sustainable development. Inclusive green investment forms an important part of the broad environmental, social, and governance (ESG) considerations that underpin sustainable investment. Green investment supports economic growth in a clean, resilient, and sustainable manner – such as initiatives to encourage more efficient use of resources, reduce pollution, and mitigate environmental damage. Inclusive investment serves not only investors, but the broad interests of society, particularly low-income segments of the population.