The US Agency for International Development (USAID) will invest over 200 million shillings ($1.4 million) to support Kenya’s carbon market activation plan, a local media reported.

The carbon market funding will come from the over 5 billion shillings ($35 million) outlay, part of several investments and initiatives to support climate action in Africa, Business Daily reported, citing USAID Chief Climate Officer and Deputy Assistant Administrator Gillian Caldwell.

“These activities will support communities across Africa to build their resilience to climate impacts and sustainably grow their economies,” he said.

In addition, the Power Africa Initiative, which aims at supporting economic growth and development by increasing access to affordable and sustainable power, will invest over 900 million shillings in the African Development Bank’s sustainable energy fund to strengthen access to electricity and 400 million shillings in the African Legal Support Facility to provide counsel to clean energy transactions.

Through Development Innovation Ventures, the US agency will invest almost 220 million shillings to enhance access to clean, green, public transport by supporting Kenya’s BasiGo electric bus transport company to expand to Rwanda.

Kenya is expected to set up a carbon registry shortly to allow trading in carbon credits after President William Ruto signed into law the Climate Change (Amendment) Bill 2023 on September 1.

A designated national authority will be appointed to maintain the national carbon registry, the National Assembly said in its brief to the president.

(Editing by Seban Scaria seban.scaria@lseg.com)