Kenyan President William Ruto has revealed the nation’s contemplation of entering the green finance arena through the potential sale of sovereign green bonds and engaging in debt-for-nature swap agreements to fund critical climate projects. Speaking on the sidelines of the 28th Conference of the Parties (COP 28) in Dubai, President Ruto emphasized the significance of exploring new avenues to address climate challenges.
“Selling a green bond is the next thing on the horizon,” President Ruto stated during an interview on Saturday. However, he refrained from providing specific details or a concrete timeline for the prospective financial ventures.
In addition to considering financial instruments, the Kenyan government aims to escalate its commitment to renewable energy initiatives. President Ruto disclosed ambitious plans, including the planting of 15 billion trees and the restoration of 10,000 wetlands across the East African nation.
“We are not only supplying energy to our citizens but using green energy to power our industrialization,” President Ruto shared in an interview with Bloomberg TV. “We have huge opportunities in ammonia, fertilizer. We have opportunities in green steel, in many of the other minerals available in Kenya.”
The urgency to address climate change in Kenya is underscored by the World Bank’s warning that failure to mitigate its impact could lead to severe consequences, including a substantial reduction in economic output, setbacks in poverty reduction efforts, and an exacerbation of existing inequalities. The World Bank’s Kenya Country Climate and Development Report projects a potential drop of up to 7.3% in gross domestic product by 2050 under a business-as-usual scenario.
“We must consistently make the decisions that will pull us out of these difficult situations,” President Ruto asserted. “Some of the decisions may not be popular, some may be difficult, but if they are the right decisions, finally, they will pull us out.”
Looking ahead, Kenya envisions a significant boost in renewable energy generation, aiming to increase capacity from the current 3 gigawatts to an impressive 100 gigawatts. This expansion is crucial for powering the envisioned green industrial economy, which includes the manufacturing of ammonia and steel. Notably, approximately 92% of Kenya’s current energy generation is sourced from renewable means, primarily geothermal, hydro, and wind. President Ruto’s ambitious plans align with Kenya’s commitment to sustainable and green development practices as the nation takes decisive steps to combat climate change.
Photo (Bennett Raglin/Getty Images)
December 4, 2023
By: Delino Gayweh
Serrari Financial Analyst
