Kenya’s national budget for the 2026/27 fiscal year marked a significant escalation in the government’s financial commitment to addressing climate change, allocating Ksh124.8 billion — approximately $960 million — to climate resilience measures across multiple sectors.
Forest Conservation and Tree Growing at the Core
Within the Ksh124.8 billion climate envelope, Ksh13.4 billion was earmarked specifically for forest conservation. A further Ksh3.2 billion was allocated to tree growing programmes, directly underpinning the government’s flagship 15-billion-tree initiative.
A Policy Contradiction: Solar VAT Exemptions to Expire
The budget’s climate ambition is complicated by a significant policy contradiction. VAT exemptions on clean cooking products and solar energy equipment — measures that have helped expand household access to affordable clean energy — were set to expire on June 30, 2026. Energy access advocates raised immediate alarm about the impact on rural and low-income households.
Accountability Will Determine the Budget’s True Value
Budget watchers and civil society organisations caution that allocations on paper must translate into effective, transparent expenditure on the ground. Environmental accountability groups are calling for robust public reporting on how the Ksh124.8 billion is spent.
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