Assessment Of County Green Bond Potential In Kenya
FSD Kenya
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Abstract: This report presents the strategic framework and preliminary findings of an initiative by FSD Kenya to assess the potential of sub-national governments in Kenya to access green bond financing. It explores county-level readiness across four pillars: economic and fiscal performance, credit risk (via shadow ratings), green asset and activity mapping, and institutional capacity to issue and manage green financial instruments. Ten counties?Embu, Kirinyaga, Kisumu, Laikipia, Makueni, Nairobi, Nandi, Taita Taveta, Vihiga, and Wajir?were selected based on ongoing climate initiatives, CCCF implementation, regional balance, and expressed interest in green bonds. The report introduces various bond structuring options including single-county, multi-county, and sovereign-linked green bonds. It also identifies use cases for blended finance and debt-climate swaps. Engagement methodology includes capacity building, site visits, asset verification, and stakeholder debriefs. Key partners include Agusto & Co., Nairobi Securities Exchange, CMA, and the ADA Consortium.