Kenya has introduced a cap on the amount of carbon emissions credits it will authorize for sale to overseas buyers, unveiling one of Africa’s most detailed rule books for international carbon trading. The country has set a 10 million metric ton budget for international carbon market transactions up to 2030, establishing a ceiling against which every request will be assessed under the nation’s new carbon markets guide.
Released on Monday, the guide creates a framework for approving projects under Article 6 of the Paris Agreement. This article allows countries to trade emission reduction credits to help meet global climate targets. Environment Cabinet Secretary Deborah Barasa stated that the framework introduces a national carbon budget for trading to safeguard Kenya’s Nationally Determined Contribution (NDC).
The Paris Agreement commits countries to keeping the rise in global temperatures by the year 2100 well below 2 degrees Celsius (3.6 degrees Fahrenheit) compared to preindustrial times, with an endeavor to limit them even more, to 1.5 degrees Celsius.
Kenya's carbon budget covers emissions reductions generated in the energy, transportation, industrial processes, and waste sectors. Annual allocations are capped at 1.67 million metric tons of carbon dioxide equivalent. Officials indicated the cap is intended to prevent Kenya from overselling carbon credits that it may later need to meet its own NDC under the Paris Agreement.
The new framework replaces a previously uncertain approval process that involved a three-stage decision pathway: No-Objection, Approval, and Authorization. Environment and Climate Change Principal Secretary Festus Ng’eno noted that the guide establishes a national carbon budget for trading as a binding safeguard and provides state agencies with practical decision-making tools throughout a project’s life cycle.
The guide also introduces a conditional list of priority activities, including renewable energy, transportation, and waste projects. Forests and other land-use projects are currently excluded as the country develops stronger baselines and data to manage reversal risks. Officials stated that inclusion on the priority list does not guarantee approval but is intended to expedite the review of projects aligned with Kenya’s development priorities.
Kenya has emerged as a significant destination for carbon market investments in Africa, attracting funding for clean cooking, renewable energy, mangrove restoration, and forest conservation. The government believes the new framework will enhance investor confidence by making decision-making more predictable, while also protecting climate integrity and ensuring local communities benefit from carbon market projects.
“Predictability, transparency, and institutional coherence are essential to attracting quality investment," Ng’eno said, adding that government decisions will be based on “clear, published criteria designed to deliver national benefits without compromising Kenya’s climate integrity.”