Nairobi Positions as Climate Finance Hub as NIFC and KPMG Strengthen Partnership
Published · 3 min read
Kenya’s Nairobi International Financial Centre and KPMG East Africa held a strategic meeting yesterday to advance collaboration on climate finance and sustainable investment, marking a key step in positioning Nairobi as a regional hub for green capital in Africa.
The engagement focused on renewable energy, carbon markets, and green finance, with discussions covering market structuring, deal advisory, ecosystem mapping, and investment mobilization.
The partnership comes as African nations face a widening gap between climate finance needs and available capital, with current flows meeting only about 25 percent of Sub-Saharan Africa’s annual climate financing requirements.
Addressing Africa’s Financing Gap
Africa needs approximately $277 billion annually between 2020 and 2030 to implement its climate commitments under the Paris Agreement. Yet the continent receives less than 3 percent of global climate finance despite being home to 30 of the 40 most climate-vulnerable countries.
“Purposeful partnerships will be key to closing Africa’s climate financing gap and accelerating a resilient, low-carbon transition,” NIFC stated in announcing the collaboration.
The organization added that the engagement supports Nairobi’s positioning as a regional hub for climate and sustainable finance, driving investor confidence, green capital flows, and bankable project pipelines.
Kenya’s Green Finance Leadership
Kenya has emerged as a leader in climate finance policy across East Africa. In 2023, the country enacted the Climate Change Amendment Act, establishing a framework for carbon trading and developing a national carbon registry.
The country issued its inaugural sovereign green bond, raising over 4.3 billion Kenyan Shillings. Kenya has also removed tax on interest earned from green bonds and signed bilateral carbon credit agreements with Switzerland and Sweden.
A recent study indicated the potential for debt-free financing of more than $1 billion through carbon market mechanisms. At a conservative estimate of $20 per tonne, carbon credit demand could create a market of roughly $20 billion by 2049.
Building Investment Infrastructure
The NIFC-KPMG partnership addresses a persistent challenge in African climate finance. Many projects fall in the “missing middle,” too large for microfinance but too small to attract major institutional investors focused on megaprojects worth $500 million or more.
This segment represents approximately 35 percent of African renewable energy deals. African renewable energy projects currently face financing costs averaging 8.5 to 9 percent compared to 5 to 6 percent in developed markets.
The collaboration aims to help developers move projects from concept to investment-ready status through technical expertise in structuring financing, understanding regulatory frameworks, and managing risk allocation.
Regional Impact and Next Steps
Africa raised approximately $13 billion through sustainable debt instruments in 2024, with most allocation going to renewable energy projects. While Africa’s green bond market accounts for less than 1 percent of global issuances, countries like Kenya are rapidly building market infrastructure to expand this base.
The partnership arrives as Africa prepares for major climate finance events. The Africa’s Green Economy Summit 2026, scheduled for February 24 to 27 in Cape Town, will showcase over 50 vetted African climate projects spanning renewable energy, battery storage, and climate-resilient systems.
The Carbon Markets Africa Summit, scheduled for October 13 to 15 in Kigali, Rwanda, will provide another venue for connecting carbon project developers with investors.
For Nairobi, these events represent an opportunity to consolidate its position as a financial center where climate deals are structured, financed, and executed. The NIFC-KPMG engagement signals that Kenya’s financial infrastructure is becoming competitive in enabling climate-aligned investments at scale.
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