The funds are now witnessing growth in local investments in sectors such as water, agriculture, and renewable energy National Treasury head of the climate finance and green economy unit and programme coordinator for FLLoCA, Peter Odhengo /HANDOUT Counties are increasingly adopting the National Treasury’s new climate financing model, signalling a shift that could redefine how public funds translate into local investment opportunities across Kenya.
At the centre of this transition is the Financing Locally-Led Climate Action (FLLoCA) programme, a roughly $295 million (Sh38.1 billion) blended fund supported by the government, the World Bank and other development partners. While originally designed to strengthen climate resilience, implementers now say the programme is evolving into a decentralised investment platform spanning more than 45 counties.
According to National Treasury head of the climate finance and green economy unit and programme coordinator for FLLoCA, Peter Odhengo, the funds are now witnessing growth in local investments in sectors such as water, agriculture, and renewable energy. He says that, rather than central government agencies dictating projects, counties and communities are identifying, prioritizing and implementing investments based on local climate risks and economic needs.
“We are deliberately moving from grant-funded activities to projects that can attract private capital, create jobs and deliver long-term economic value at the county level,” said Odhengo. So far more than 2,400 projects at various stages of development, many of which are now being structured with an eye toward financial sustainability and private sector participation.
“This is not just a climate program—it is about building a functioning local climate investment market,” said Odhengo. Under the program, counties receive performance-based grants but must meet strict governance, planning and accountability criteria. Projects are subjected to technical appraisal, procurement processes and financial structuring frameworks similar to those used in large-scale infrastructure investments.