The Climate Change Act of Kenya ('Act') was enacted in 2016 to establish a robust legal and institutional framework for mitigating and adapting to climate change. The Act acknowledges the threats to Kenya's environment, economy, and communities caused by the adverse effects of climate change and outlines a coordinated approach to addressing climate change. This article outlines the key provisions of the Act and their implications for businesses operating in Kenya.

National Climate Change Council

 Section 5 of the Act creates the National Climate Change Council, chaired by the President, to 5. Functions of the Council - (1)

• The Council shall advise the Government on all matters relating to climate change.
• Coordinate overall efforts related to climate change, including approving and overseeing the implementation of National Climate Change Action Plans.
• Setting national targets for climate change response
• Providing advice to national and county governments on legislative, policy, and other interventions in addressing climate change.
• For instance, the Council's makeup and mandate reflect a high-level political commitment to climate action.

Climate Change Directorate

Section 7 establishes the Climate Change Directorate in the Ministry of Environment and Forestry, which leads national climate change planning and action. The Directorate has responsibility for:

• Formulating and implementing National Climate Change Action Plans
• Coordinating actions related to climate change between national and county governments
• Advising public and private entities on climate change
• Reporting biennially to Parliament on implementation progress
• Firms must work with the Directorate to ensure that their strategies and activities are in line with national climate plans and to access available support.

National Climate Change Action Plan

 Under Section 13, the Cabinet Secretary appointed to chair the National Climate Change Council must develop 5-year National Climate Change Action Plans, providing key policy and implementation guidance for Kenya's response. The plans must contain:

• Measures to achieve low-carbon climate-resilient development
• Adaptation and mitigation actions across sectors
• Measures to mainstream climate change into sector functions
• Recommendations on policy, legislative, and institutional reforms

Businesses can engage in the development of these plans through the mandatory public consultation processes of Section 24 and find opportunities in their operations and plans to participate in climate-smart agriculture, renewable energy, sustainable transport, and other key sectors.

Duties of Public and Private Entities

Section 23 imposes duties on both public and private entities to:

• Mainstream climate change responses into their functions
•  Report annually to the Directorate on sectoral greenhouse gas emissions and reduction efforts
• Designate a climate change coordinator to liaise with the Directorate

 Hence, companies are now expected to conduct risk and impact assessments of their climate-related implications, design mitigation and adaptation measures, and establish systems for annual reporting.

Climate Change Fund

 Section 25 establishes the Climate Change Fund to support financing priority climate change interventions and actions. The Fund can source monies from the following:

• Appropriations from Parliament
• Donations and endowments
• Proceeds of carbon credits trading
• Climate finance from international sources

 Besides, the companies might get funding for eligible climate projects and earn money by selling carbon credits.

Case Law Implications

In 2022, a Kenyan court, in the case of Save Lamu et al. v. National Environment Management Authority and Amu Power Co. Ltd, stopped the construction of a coal-fired power plant in Lamu County, finding that the project proponents had failed to complete a comprehensive environmental and social impact assessment and failed to adequately consult the local public as mandated by the Climate Change Act and the Environmental Management and Coordination Act.

 This groundbreaking case underlines the significance of sound climate risk appraisal and full and active public participation in approving major approvals under the Climate Change Act. It requires businesses to ensure they have the processes and expertise in place to satisfy these demands.

Conclusion

Kenya's Climate Change Act is the first in Africa to detail how government, the private sector, and

communities can coordinate a response to the climate challenge.

Businesses can contribute to implementing the Act by aligning their strategies with national plans,

measuring and disclosing their climate risks and impacts, accessing and mobilizing climate finance,

and shaping a low-carbon, climate-resilient future for Kenya.