In a landmark move aimed at tightening control over carbon trading in Kenya, the government has proposed the establishment of a National Carbon Registry that will formalize and monitor all carbon credit-generating projects. The draft Climate Change (Carbon Registry) Regulations, 2025, published by the Ministry of Environment, Climate Change, and Forestry, seek to usher in a new era of transparency, local empowerment, and environmental justice.
Why the National Registry Matters
The proposed legal framework will require all individuals, organizations, NGOs, companies, and county governments engaging in carbon offset initiatives—including tree planting, clean energy, and ecosystem conservation—to register their projects under a centralised digital platform.
The goal? To bring order to a market that has long been mired in opacity and dominated by foreign entities profiting from Kenya’s natural assets, often without involving local stakeholders.
For years, Kenya’s participation in the global carbon credit market has attracted international interest. However, in the absence of strong regulation, many carbon deals have excluded indigenous landowners, county authorities, and small local investors. This has created widespread discontent and raised concerns about environmental exploitation and economic injustice.
Draft Regulations to Protect Local Interests
The Climate Change (Carbon Registry) Regulations, 2025, were drafted under Section 23G of the Climate Change Act. They aim to operationalize key aspects of the Act by establishing a formal system of oversight. Once enacted, the regulations will:
- Establish a National Carbon Registry overseen by the Climate Change Directorate, working in tandem with the National Environment Management Authority (NEMA).
- Require carbon credit projects to disclose ownership details, benefit-sharing mechanisms, and environmental impact data.
- Impose penalties for non-compliance, including potential de-registration of unapproved projects.
- Empower the Cabinet Secretary to issue operational guidelines and designate roles to other relevant agencies.
According to the draft notice by CS Deborah Barasa, the registry will enhance public access to carbon project information, build confidence in the carbon market, and safeguard community rights.
“The objectives of the Draft Regulations are to provide for the operation and effective administration of the National Carbon Registry and to enhance public confidence and market integrity,” read part of the notice.
What’s Driving the Reform?
Kenya’s entry into the global carbon credit economy has the potential to generate tens of billions of shillings. With a growing number of countries and corporations seeking to offset their emissions, carbon offsets are becoming a hot commodity. Unfortunately, the existing legal vacuum has allowed foreign firms to dominate carbon trading, sometimes striking opaque deals with questionable benefit to Kenyan citizens.
Several cases have emerged in recent years where local communities were left out of multi-year contracts that involved forest protection, wetland preservation, or carbon capture initiatives. In many instances, indigenous landowners had no knowledge or say in how their land was used to generate profit.
The new regulations aim to level the playing field by opening the door for small-scale developers, farmers, and local conservation groups to participate in carbon markets on equal terms.
Impacts for Stakeholders
If enacted, the registry will:
- Formalize project registration: All carbon projects will need prior approval before earning or trading carbon credits.
- Ensure local benefit: Developers will be required to explain how revenue will be shared with communities and counties.
- Promote environmental accountability: Projects must submit periodic environmental performance data for review.
- Boost credibility in the carbon market: With project data publicly available, confidence among global carbon buyers is expected to grow.
Opportunities for Local Communities and SMEs
The proposed regulations are a potential game-changer for community-led projects, especially in forested and arid regions where reforestation, clean cooking, and solar energy initiatives are already underway.
By simplifying access to carbon revenues and reducing dependence on middlemen or foreign brokers, the government hopes to empower local communities economically while meeting Kenya’s climate goals.
Public Participation Invited Before July 15
To ensure an inclusive approach, the Ministry of Environment has opened a public participation window for all stakeholders to review and provide feedback on the Draft Regulations.
“This is therefore to request the public and all persons likely to be affected by the Draft Regulations to submit a written memorandum… on or before 15 July 2025,” the notice read.
Submissions can be made in writing to the Climate Change Directorate and are expected to inform the final form of the legislation before it is gazetted later in the year.
Conclusion: Balancing Profit, People, and the Planet
Kenya’s proposed National Carbon Registry marks a significant step in regulating the country’s carbon economy. By ensuring accountability, transparency, and fair benefit-sharing, the government hopes to align carbon trading with the country’s broader environmental, economic, and social goals.
With billions at stake and the need for climate-smart development more urgent than ever, Kenya’s leadership on carbon regulation could set an example for other African nations looking to protect both local livelihoods and global environmental integrity.