New regulations on climate: What developers, investors need to know



In recent years, climate investment discussions in Kenya have largely focused on generating carbon credits for sale in global markets. However, the new Climate Change (Non-Market Approaches) Regulations, 2026 signal a broader shift, moving beyond carbon trading and introducing new considerations for developers, investors and sustainability-focused organisations.

Gazetted in February 2026, the Regulations operationalise Article 6.8 of the Paris Agreement, establishing a framework for non-market approaches (NMAs) — climate initiatives that support mitigation, adaptation and sustainable development without creating or trading carbon credits.

The framework includes a national platform for submitting, assessing and tracking projects, bringing these activities firmly within Kenya’s climate governance structure.

For organisations involved in renewable energy, climate-smart agriculture, ecosystem restoration, clean cooking and sustainable waste management, the Regulations represent more than a policy update.

They introduce compliance obligations for projects that have traditionally operated outside the carbon market ecosystem. As a result, organisations may need to reassess existing and planned projects to ensure they meet the new requirements.

A key change is the introduction of a formal approval process. Project proponents must obtain authorisation from the Climate Change Directorate and demonstrate alignment with Kenya’s climate priorities and sustainable development goals.

Projects seeking recognition under the wider Article 6.8 framework may also be assessed on scalability, multi-stakeholder collaboration and their ability to attract international support.

This means regulatory compliance can no longer be treated as a late-stage consideration. Governance structures, stakeholder engagement and compliance planning will need to be integrated into project design from the outset. Early legal and governance input can help identify risks, prevent approval delays and ensure long-term compliance.

The regulations also place greater emphasis on community participation.

Projects involving public land must demonstrate meaningful public engagement, while those on community land require free, prior and informed consent.

Existing provisions under Kenya’s Community Land Act further require investment agreements involving community land to be approved by at least two-thirds of adult community members through a properly convened assembly.

Compliance obligations continue throughout a project’s lifespan. Proponents must submit annual progress reports, creating ongoing requirements for monitoring, governance and accountability.

While the framework introduces additional responsibilities, it also offers greater regulatory certainty.



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