Carbon Trading in Kenya and Africa

Kenya’s Carbon Trading Landscape

The Climate Change (Amendment) Act, 2023, enacted in September 2023, mandated environmental impact assessments, community development agreements (CDAs), and registration of projects with a National Carbon Registry Bowman LawMondaq.
Building on this, the Climate Change (Carbon Markets) Regulations, 2024 (effective May 2024) introduced:
- A carbon registry managed by NEMA, the national authority under Article 6 of the Paris Agreement;
- Clear rules for project approval, and differentiated community benefit-sharing: at least 40% of earnings from land-based projects, 25% for non-land-based KilimokwanzaEYMount Kenya Times.

Since 2012, registered carbon projects grew from 8 to 80+ by 2023, generating ~4.5 million credits yearly—valued at around $77 million (nearly 1% of Kenya’s GDP) Mount Kenya Times.
In June 2023, Kenya hosted the world’s largest carbon market auction, selling over 2.2 million tonnes of credits from sectors like reforestation, renewables, and waste management The Star.

Only 38% of Kenya’s carbon projects complete validation due to high transaction costs, complex methodologies, and technical capacity gaps Mount Kenya Times.
Benefit-sharing remains skewed: indigenous communities often receive less than 20% of project revenues, despite stewarding the land Mount Kenya TimesResearchGate.
Some projects have overestimated their emissions reductions, undermining credibility and investor confidence Mount Kenya Times.

Octavia Carbon, a Kenyan start-up, is deploying Direct Air Carbon Capture (DACC) using geothermal steam and basalt storage. Its prototypes capture about 10 tonnes CO₂/year (like 1,000 trees). Plans are underway for a 1,000-ton facility, with ~$3 million in carbon credit contracts secured Reuters.
Koko Networks provides bioethanol cookstoves to Kenyan households. Backed by carbon market revenues and supported by a $179.6 million MIGA guarantee, it’s scaling clean-cooking initiatives and selling credits internationally Wikipedia.
CO2balance, a UK-based consultancy, operates in Kenya through CarbonZero Kenya Ltd, helping develop carbon projects aligned with the SDGs Wikipedia.

The Northern Kenya Rangelands Carbon Project—backed by Meta, Netflix, and British Airways—has generated ~$90 million in sales. Yet, a Kenyan court recently ruled that two conservancies were unlawfully established; Verra is now reviewing their accreditation The Times.
Local communities accuse such projects of disrupting traditional lifestyles, restricted land access, and lacking meaningful consent. For example:

“We are pastoralists, we don’t want to be given restrictions that we can’t move with our animals.”