Kenya woos Chinese capital flows to boost green agenda

Published: October 09,2022

Kenya is keen to attract Chinese capital flows in order to boost the country’s green agenda, a governmental official said on Friday.

“We are looking for Chinese investors to establish special purpose vehicles locally that can finance innovative solutions that will accelerate Kenya’s transition towards a green economy,” Oscar Njuguna, acting CEO of the Nairobi International Financial Center Authority (NIFCA) said on the sidelines of the forum on African natural capital in Nairobi, the capital of Kenya. 

He said that the east African nation provides attractive returns to investors who finance projects that are environmentally friendly, specifying that NIFCA provides investors with predictable and preferential tax incentives to finance green projects in areas such as energy and transport sectors.

Kenya has abundant renewable energy resources such as solar and geothermal energy that can be tapped by using Chinese funds, Njuguna said. He revealed that Chinese financiers can also tap into emerging opportunities in East Africa by establishing a presence in Kenya which is a regional hub. “China is an ideal partner for Kenya because it is a global leader in the development and utilization of green projects,” he said. 

Njuguna added that Kenya’s developing nation status means that it can easily transition to a green economy because it is a relatively small contributor to the total global carbon emissions. 

Xinhua