Securing Growth: Opportunities For Kenya In A Decarbonizing World
World Bank Group
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Abstract: This edition of the Kenya Economic Update assesses Kenya?s macroeconomic performance in 2022 and explores opportunities for economic transformation within a low-carbon development framework. It highlights that despite global shocks?including drought, inflation, currency depreciation, and geopolitical instability?Kenya maintained resilient GDP growth at 4.8%, with moderate inflationary adjustments and ongoing fiscal consolidation. The report's special focus examines pathways for Kenya to thrive in a decarbonizing global economy, emphasizing investment in clean energy, low-carbon transport, and carbon market mechanisms. It argues for scaling renewable electricity to meet growing demand sustainably, modernizing logistics and mobility to reduce emissions, and leveraging Article 6 of the Paris Agreement for climate finance. The study shows Kenya's unique position as a low-emitter with high green energy potential and calls for policy alignment, public-private financing, and institutional reforms to drive climate-positive development.