Climate Adaptation Economics Kenya Water Sector
Stockholm Environment Institute
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Abstract: This study evaluates adaptation cost methodologies for Kenya?s water sector under climate risk and development uncertainty. It applies three approaches: (1) UNDP?s Investment and Financial Flows (I&FF) to assess national-scale adaptation expenditure gaps; (2) SEI?s adaptation signatures, mapping institutional and project-level readiness; and (3) a WEAP modeling case study in the Tana River Basin that simulates climate and socio-economic scenarios to analyze costs and performance of supply, demand, and ecosystem-based interventions. Findings highlight knowledge gaps in Kenya?s hydrological data and present the costs of adaptation strategies under various water stress projections. The report identifies investment needs, recommends no-regrets strategies, and stresses capacity-building, planning integration, and knowledge-based decision-making as critical for resilience.