By: Clarice Wambua, Consultant and Nicole Gacheche, Associate in the Environmental Law Practice at Cliffe Dekker Hofmeyr (CDH) Kenya
In the recent past, climate investment discussions in Kenya have largely centred on the domestic generation of carbon credits geared towards sale in the global carbon markets. However, the country’s new Climate Change (Non-Market Approaches) Regulations, 2026 point to a broader shift in how climate action is being approached, moving beyond carbon-credit generation and introducing a new set of considerations for developers, investors and sustainability-focused organisations.
Gazetted in February 2026, the Regulations operationalise Article 6.8 of the Paris Agreement, creating a formal framework for non-market approaches (NMAs). These are climate initiatives that contribute to mitigation, adaptation and sustainable development without relying on the creation or trading of carbon credits. The framework is supported by the establishment of a national platform through which projects are submitted, assessed and tracked, reinforcing the formalisation of these activities within Kenya’s climate regime.
For organisations already active in areas such as renewable energy, climate-smart agriculture, ecosystem restoration, clean cooking and sustainable waste management, this is more than just another policy development. The Regulations introduce a compliance framework that could apply to projects that have, until now, largely sat outside the carbon market ecosystem. In practice, this means organisations may need to reassess how existing or pipeline projects are structured to ensure they fall within the new regulatory parameters.
One of the more notable shifts is the introduction of a formal approval process. Project proponents must seek authorisation from Kenya’s Climate Change Directorate and demonstrate how their initiatives align with national climate priorities and broader sustainable development goals.
For initiatives looking to be recognised internationally within the wider Article 6.8 framework, expectations extend further. Factors such as scalability, multi-stakeholder collaboration and the ability to attract international support are all likely to shape how projects are assessed.
What this means in practice is that regulatory considerations can’t really be treated as a late-stage exercise anymore. Developers and investors will need to factor in governance structures, stakeholder engagement and compliance requirements much earlier, alongside technical and financial planning. Early legal and governance input can play an important role here in helping to identify risks upfront, avoid delays in the approval process and ensure that projects are structured with long-term compliance in mind.
The Regulations also place stronger emphasis on community participation. Projects involving public land will need to show clear evidence of public participation. Where community land is involved, project proponents are required to obtain free, prior and informed consent (FPIC), ensuring that affected communities have a genuine opportunity to understand proposed activities, consider potential impacts and take part in decision-making.
These obligations are reinforced by existing requirements under Kenya’s Community Land Act. Investment agreements involving community land must secure approval from at least two-thirds of adult community members through a properly convened assembly. While this strengthens protections for communities, it also brings practical considerations around project timelines, consultation processes and stakeholder management into sharper focus, particularly where alignment across large or dispersed communities is required.
Compliance doesn’t stop once approval is granted. Proponents are required to submit annual progress reports throughout the lifespan of a project, creating an ongoing obligation around monitoring, governance and accountability. For many organisations, this will mean putting in place more robust internal systems to track progress and meet reporting requirements over time, rather than treating reporting as an administrative afterthought.
While the new framework introduces additional responsibilities, it also opens up some important opportunities. By providing greater regulatory clarity for non-market approaches, Kenya is creating a recognised pathway for climate initiatives that prioritise resilience, adaptation and sustainable development alongside emissions reduction. That kind of certainty can go a long way in building investor confidence and strengthening the long-term viability of projects seeking international partnerships and support.
More broadly, the Regulations point to where climate action in Kenya is heading. As the country expands its policy toolkit beyond carbon markets, organisations that engage early, invest in strong governance structures and prioritise community participation are likely to be better placed to navigate what’s coming, and to access emerging opportunities linked to international climate cooperation.
For developers and investors, the opportunity isn’t just about compliance. It’s about building climate projects that are more transparent, resilient and genuinely aligned with the long-term expectations of regulators, communities and funding partners alike, while taking practical steps now to ensure those projects are fit for an increasingly structured regulatory environment.
