Murang'a

Nairobi City

Kisii

Bomet

Vihiga

Nakuru

Kisumu

Bungoma

Wajir

Nandi

Kitui

Busia

West Pokot

Narok

Kwale

Elgeyo/Marakwet

Nyamira

Laikipia

Embu

Nyandarua

Lamu

Garissa

Nyeri

Machakos

Homa Bay

Samburu

Makueni

Isiolo

Siaya

Mandera

Kajiado

Taita/Taveta

Marsabit

Kakamega

Tana River

Meru

Kericho

Tharaka-Nithi

Migori

Kiambu

Trans Nzoia

Mombasa

Kilifi

Turkana

Baringo

Kirinyaga

Uasin Gishu

Kenya

<p>This project aims to unlock investments for gender- and youth-inclusive early-growth adaptation SMEs in Kenya and Uganda by bridging the “missing middle” financing gap that limits their ability to scale climate solutions in the agriculture and water sectors. It supports SMEs providing locally tailored adaptation technologies and services through performance-based grants, business advisory support, and capacity building. By fostering inclusive entrepreneurship and crowding in private capital, it seeks to transform local financial markets and enhance the climate resilience of vulnerable communities, particularly women and youth.</p>

As GCF’s first dedicated livestock programme, DaIMA aims to strengthen climate resilience, reduce emissions across the dairy value chain and improve the livelihoods of dairy farmers in East Africa.

The dairy sector in East Africa, including Kenya, Rwanda, Uganda and the United Republic of Tanzania, faces significant challenges due to climate change. Dairy farming is a major contributor to these countries' greenhouse gas (GHG) emissions, and climate change's effects threaten its long-term sustainability. Many dairy farmers struggle with limited market access, challenges in sourcing local feed and fodder, inadequate extension and financial services, and difficulties in risk management. The sector is further impacted by low livestock genetic potential, herd management issues, animal diseases, insufficient extension support, limited awareness of climate-resilient and low-carbon practices and technologies, rangeland degradation and gender inequalities.

DaIMA has a comprehensive and holistic approach to improve all aspects of the dairy sector, from improving policy, institutional and service delivery environments to building the capacity of smallholder farmers, including women, youth and marginalised groups. It will improve access to finance and innovative technologies offering mitigation and adaptation benefits. As a result, dairy farmers and processors will be encouraged to adopt more efficient, climate-resilient practices that enhance incomes and lower production costs.

Key activities include strengthening national capacities and enhancing an enabling environment for a low-emission and climate-resilient dairy sector, enhancing income and productivity for smallholder dairy farmers, cooperatives and small and medium-sized enterprises (SMEs) by promoting sustainable climate-resilient and low-emission growth pathways, and establishing a Green Dairy Financing Facility in the four target countries to enhance access to finance for dairy value chain actors, including farmers, cooperatives, SMEs and technology providers.

This project scales up access to climate finance in low- and middle-income countries by developing green bond markets that mobilize investment in low-emission development. It supports GCF’s strategic goal of mobilizing private finance through innovative, market-based instruments.

Scaling low-emission development in the participating countries is constrained by limited capital, underdeveloped financial ecosystems, and few instruments to attract private investment. These countries also face acute climate vulnerability and mounting risks to their economic and social systems. Strengthening local capital markets is essential to bridge financing gaps and channel resources toward mitigation priorities.

The project aims to mobilise climate finance in low- and middle-income countries by supporting the development of local green bond markets. Through a dedicated investment fund, capital from development finance institutions and private investors will be used to finance climate mitigation projects, while parallel EU-led facilities support capacity-building and lower borrowing costs for bond issuers.

 GCF will invest EUR 200 million (approximately USD 227 million) in equity through the initiative’s fund to support mitigation projects across ten participating countries. The project will prioritise small-scale, low-carbon energy systems and create investment opportunities in hard-to-abate sectors such as transport, helping to channel private capital toward national decarbonisation efforts.

Kenya is highly vulnerable to climate change and increased climate variability, primarily due to agriculture's central role in the economy. The Lake Victoria Region, comprising 14 counties and collectively known as the Lake Region Economic Bloc (LREB), is a key agricultural hub. The region is experiencing rising temperatures, more frequent and severe droughts, and increased annual rainfall, leading to flooding and runoff.

Local adaptive capacity remains moderately low, as most smallholder farmers operate on marginal land with scarce resources and lack access to risk mitigation measures. Low agricultural productivity exerts pressure on land and natural resources, prompting cropland expansion and ecosystem degradation, leading to increased emissions from deforestation.

This project aims to promote climate-resilient, low-carbon, environmentally sustainable, and financially viable agricultural value chains by expediting the transfer of technology, knowledge, assets, and services. It emphasises empowering agri-food cooperatives as pivotal agents of rural transformation.   Project activities will focus on enabling local government support for adaptation and mitigation, investing in community-led, sustainable agricultural landscape management and restoration, increasing smallholder farmers' resilience, and improving their market access.

The project builds on outcomes from a previous initiative funded by the GCF Readiness Programme that strengthened adaptation planning capacities.

Geography

Kenya

Recent documents

Adaptation Fund

Climate Investment Funds

Green Climate Fund

Global Environment Facility