In a landmark effort to unlock Kenya's climate potential and streamline private sector engagement, the Kenya Private Sector Alliance (KEPSA) played a leading role in developing a groundbreaking Model County Environment Bill and comprehensive Guidelines for Issuing County Letters of Support in Carbon Projects. This critical initiative, set to standardize climate action across all counties, will significantly enhance Kenya's ability to attract vital climate finance, foster green investments, and accelerate its transition toward a sustainable, resilient economy.

Dr. Jackson Koimbori, Head of KEPSA Consult and Senior Circular Economy and Climate Change Coordinator, represented KEPSA in a high-level Technical Working Group (TWG) convened in Mombasa from May 26th to 31st, 2025. The group's mission was to draft the Model County Environment Bill and comprehensive Guidelines for Issuing County Letters of Support in Carbon Projects.

During this period, Dr. Koimbori also presented KEPSA's recently published Carbon Market Guidebook for Kenyan Enterprises. Released in 2024, this guidebook serves as a practical resource for private sector players, offering critical insights into Kenya's evolving carbon market and providing guidance on navigating regulatory frameworks and investment opportunities in carbon project development.

The Technical Working Group, led by the Council of Governors and supported by the World Bank’s FLLoCA Program, focused on developing legal and operational frameworks to support counties in implementing Kenya’s Climate Change (Amendment) Act and Carbon Market Regulations of 2024. The initiative aims to create a uniform structure that facilitates private sector participation in carbon projects, ensuring counties are well-equipped to manage their devolved environmental responsibilities.

Throughout the sessions, the group collaboratively worked on drafting key provisions to harmonize the issuance of Letters of Support for carbon projects. These guidelines are intended to balance county development priorities with the need to attract credible private sector proponents, fostering an enabling environment for climate finance and investment.

Dr. Koimbori's presentation highlighted key challenges faced by private sector players in carbon project development, including:

• Navigating complex regulatory frameworks across multiple counties with varying capacities and interpretations.
• Securing timely issuance of Letters of Support, which are critical to project validation and financing.
• Addressing capacity gaps within county governments in understanding and managing carbon projects.
• Mitigating risks related to lengthy approval processes and inconsistent policy enforcement.
• Ensuring clear benefit-sharing mechanisms that incentivize private investments while supporting local communities.

The resulting Model County Environment Bill and Carbon Projects Guidelines will provide counties with a clear legal and procedural framework to implement climate policies consistently, promoting cross-county coordination and reducing regulatory fragmentation. This regional approach is critical to supporting large-scale carbon projects and maximizing their environmental and economic benefits.

KEPSA’s participation underscores the private sector’s vital role in advancing Kenya’s climate agenda by bridging public-private collaboration and advocating for enterprise-friendly climate governance reforms. As the final documents are rolled out nationwide, they will be instrumental in Kenya’s transition toward a green, inclusive, and investment-ready economy.