County Green Investment Facility Launches, Unlocking Climate-Focused Funding for Devolved Projects
NAIROBI — In a significant step toward financing Kenya’s climate action and sustainable development goals, the County Green Investment Facility (CGIF) is now officially operational, marking a pioneering effort to channel dedicated funding into environmentally sound projects at the devolved level. The facility, developed through a collaboration between the Council of Governors, the National Treasury, and development partners including FSD Kenya and the Green Climate Fund, is designed to provide counties with access to concessional loans, grants, and technical assistance for green infrastructure and resilience-building initiatives.
The CGIF addresses a critical gap in sub-national financing by offering a structured mechanism for counties to fund projects that might otherwise struggle to attract commercial investment. Eligible initiatives span a wide range of sectors, including sustainable water and sanitation systems, renewable energy projects like solar mini-grids and biogas plants, climate-smart agriculture, waste-to-resource programs, and ecosystem restoration. The facility will operate through accredited local financial institutions, which will on-lend the funds to county governments or public-private partnerships, backed by a partial guarantee mechanism to de-risk the investments for lenders.
This is a game-changer for implementing our County Integrated Development Plans (CIDPs) with a climate lens, said Governor Anne Waiguru, Chair of the Council of Governors. For the first time, we have a dedicated, scalable instrument that moves us from climate planning to climate investing. County executives for finance and environment have welcomed the facility, noting that it provides a viable alternative to over-reliance on exchequer releases and short-term donor projects, enabling longer-term planning for green growth. The National Treasury emphasized that the CGIF aligns with Kenya’s updated Nationally Determined Contributions (NDCs) under the Paris Agreement.
The long-term success of the CGIF will depend on counties’ capacity to develop robust, bankable project proposals and effectively manage the funds. The facility therefore includes a substantial technical assistance component to help county officers with project preparation, feasibility studies, and financial management. If successfully implemented, the CGIF is expected to catalyze millions of dollars in green investment, creating jobs, enhancing community resilience to climate shocks, and serving as a replicable model for other African nations seeking to decentralize climate finance. Its progress will be closely watched as a test case for translating national climate commitments into tangible, locally-led action.