The report also highlighted that reaching the Kenyan government’s ambitious growth target of a 7.5% annual expansion through structural transformation could alleviate some of the predicted climate change-induced economic damages. This could potentially decrease the projected losses to between 2.78% and 5.3%. To accomplish this, the World Bank recommends that Kenya amplify investments in critical sectors such as agriculture, digital infrastructure, energy, transportation, water resource management, livestock feed, tourism, green energy, and e-mobility.
Kenya’s susceptibility to climate change is not solely an economic issue but also poses a significant threat to public health and food security. The country is predicted to see a surge in diseases, with malaria cases projected to increase by 56% and waterborne diseases by 10% by 2050. Additionally, without adaptation measures, an estimated increase in poverty could affect 1.1 million more people by mid-century.
Despite contributing minimally to global emissions, Kenya’s economy is heavily dependent on sectors vulnerable to climate change. The agriculture sector, which made up about 21% of its GDP in 2022, is already grappling with challenges from extreme weather events. With public debt exceeding 10.1 trillion shillings ($66 billion) as of June and a $2-billion eurobond repayment due next year amidst skyrocketing inflation and a plunging currency, Kenya’s financial capacity for addressing these issues is strained.
The World Bank’s report also underscores Kenya’s potential contribution to global emission reduction solutions, noting that over 90% of its power is generated from renewable sources like geothermal wells and hydro-generation. Expanding financial support for a wider range of climate projects could help make these initiatives more bankable and inclusive at the national level.
To tackle the multifaceted threats posed by climate change, the World Bank estimates that Kenya will need approximately $62 billion by 2030 for essential adaptation measures. This highlights the urgent need for comprehensive strategies to safeguard the nation’s economic stability and the well-being of its population against the backdrop of an ever-warming planet. The World Bank advocates for enhancing resilience through domestic resources and expanding private investment in areas like livestock feed, tourism, green energy, e-mobility.
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Source: Economy - investing.com
