County Launches Nairobi Green Finance Initiative

Nairobi County has launched a new Green Finance Initiative aimed at helping businesses transition to environmentally sustainable operations while expanding access to climate-focused investment. The program, announced in late April 2024, positions Nairobi as a pioneer in county-level green financing and seeks to mobilise funds for projects such as clean energy adoption, waste-management innovations, and climate-resilient infrastructure. County officials say the initiative will make it easier for SMEs, industries, and investors to secure green funding through tailored facilities, grants, and future municipal green bonds.
The initiative follows months of assessment conducted in partnership with financial sector institutions, including FSD Kenya, which recently released a county green finance readiness report. The assessment ranked Nairobi among the most prepared counties to implement large-scale green financing mechanisms, citing strong financial systems, a growing clean-energy market, and increased private-sector interest in sustainability. According to officials, the new framework will support businesses implementing solar technologies, water-efficiency systems, sustainable manufacturing, and circular-economy projects.
Business leaders have welcomed the initiative, noting its potential to lower operational costs, attract foreign investment, and create new green jobs. Many SMEs in manufacturing, real estate, logistics, and agribusiness have been seeking affordable financing to comply with rising environmental standards. Environmental experts also praised the county for taking a proactive role in climate-smart development, adding that the initiative could strengthen Nairobi’s position as a regional hub for green innovation. Early pilot projects are already underway, with several enterprises shortlisted for green-grant consideration.
Looking ahead, Nairobi County plans to roll out more funding windows, capacity-building programs, and incentives to encourage broader adoption of green practices. Officials confirmed that feasibility studies for a county-level green municipal bond are ongoing, signalling long-term financial commitment to sustainable development. If successful, the initiative is expected to accelerate Nairobi’s transition to a low-carbon economy while enhancing competitiveness for local businesses in regional and global markets.