County Introduces Incentives for Nairobi Renewable Energy Firms

In its newly published Fiscal Strategy Paper for FY 2025/2026, Nairobi City County announced a set of green‑investment incentives aimed at encouraging renewable‑energy businesses. The plan includes tax breaks for companies that adopt sustainable practices, reduced permit fees for developers building eco‑friendly infrastructure, and graduated discounts on land rates for projects installing solar energy systems.
The county is also activating a Green Infrastructure Fund, leveraging its recently enacted Climate Action Act (2024) to mobilize blended finance — combining grants, concessional loans, and private investments — from development partners like the Green Climate Fund (GCF), AfDB, UNEP, and others.Under the same strategy, Nairobi will pursue sustainability‑linked loans from commercial banks, where favorable interest rates depend on meeting agreed environmental, social, and governance (ESG) targets.
Environmental and business stakeholders have welcomed the move. Renewable‑energy companies say the incentives could significantly lower the cost of deploying solar, energy‑efficiency, and green‑building technologies in the city. Meanwhile, analysts believe that the fiscal measures could help Nairobi deepen its clean‑energy economy, reduce emissions, and leverage climate finance more effectively. However, they caution that success will depend on transparent implementation, strong institutional capacity, and regular monitoring of ESG-linked financing.
Looking ahead, the county plans to operationalize the new incentives through a dedicated green‑finance office, which will facilitate applications, monitor performance, and build linkages with global climate‑finance institutions. If fully deployed, the initiative could help Nairobi attract more renewable energy firms, boost green investments, and accelerate its transition toward a more sustainable, low-carbon economy.