Kenya has imposed a 10 million tonnes of carbon dioxide equivalent (MtCO₂e) ceiling on carbon credits authorized for export through 2030.
The cap, which was unveiled in conjunction with Kenya’s new carbon market rulebook, restricts the annual transfer of authorized international carbon credits to 1.67 million tonnes in the energy, transport, industrial processes and product use (IPPU), and waste sectors.
The Government says the limit will serve as a binding national carbon budget for trading, preventing the country from selling more emissions reductions than it can afford while pursuing its Nationally Determined Contributions (NDCs) under the Paris Agreement.
Earlier, Environment Cabinet Secretary Deborah Barasa said the framework is intended to strengthen environmental integrity while providing greater certainty to investors seeking to develop carbon projects in Kenya.
“It introduces a national carbon budget for trading to safeguard our Nationally Determined Contribution.”
“The guide establishes clear rules that ensure carbon trading supports Kenya’s climate ambitions while attracting quality investment.”
The move comes as Kenya positions itself as one of Africa’s leading carbon market destinations, with projects spanning renewable energy, clean cooking, mangrove restoration and forest conservation attracting millions of dollars in climate finance.
However, policymakers have increasingly expressed concern that unrestricted exports of carbon credits could leave Kenya short of emissions reductions needed to meet its own climate targets, particularly as demand from international buyers continues to rise.
The new framework introduces a structured three-stage approval process comprising No-Objection, Approval and Authorisation, replacing what investors had previously described as an unpredictable approval system.
Authorities say the reforms will improve transparency and reduce regulatory uncertainty for project developers.
Notably, forestry and other land-use projects have been excluded from the initial list of priority sectors while the government develops stronger emissions baselines and monitoring systems to address concerns over data quality and permanence risks.
The export ceiling also provides a foundation for Kenya’s planned domestic carbon exchange, expected to begin operations by March 2027 through a partnership involving the Nairobi International Financial Centre (NIFC), the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE).
The exchange is expected to create a regulated marketplace where carbon credits can be traded locally before reaching international markets.
The policy builds on reforms first proposed in draft carbon trading regulations published in 2025, which envisioned setting national limits on tradable carbon credits to align exports with Kenya’s emissions reduction commitments.
Kenya has steadily expanded its carbon market architecture over the past three years following amendments to the Climate Change Act that established the legal basis for regulating carbon trading and creating a national carbon registry.
The country has since sought to position itself as a regional hub for climate finance while ensuring local communities benefit from carbon projects and national climate goals are not compromised.
