Kenya, classified among the world’s ten mega-biodiverse nations can be a leading example in promoting nature-positive outcomes through the financial sector.

Home to over 35,000 species of flora and fauna, The country 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.

Opportunities for nature-related financing and investments in Kenya include nature-positive finance.

This report explores the opportunities for nature-related financing and investments and the enabling conditions required to foster a thriving nature-positive economy in Kenya. It offers an assessment of investable naturerelated 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.

Nature Positive is a global societal goal defined as

‘Halt and reverse nature loss by 2030 on a 2020 baseline, and achieve full recovery by 2050’.

To put this more simply, it means ensuring more nature in the world in 2030 than in 2020 and continued recovery after that

Though there is no widely agreed-upon definition, for the purposes of this report, finance that contributes to a nature-positive economy is classified as “nature-positive finance” which we define as finance that contributes to halting and reversing nature loss by restoring and enhancing ecosystems with the aim of improving the overall state of nature to full recovery by 2050.

Agriculture, forestry, environmental services, and manufacturing are the most promising sectors.

Four promising sectors and associated nature-related business models have been identified in Kenya: agriculture, forestry, environmental services, and manufacturing. Within these sectors, examples of concrete business models focused on regenerative agriculture, agroforestry, eco-tourism and waste-to-energy are provided to demonstrate the practical application of integrating nature into core business strategies. These models not only enhance environmental outcomes but also offer commercial potential and replicability.