What the Climate Change (Non-Market Approaches) Regulations, 2026 mean for climate projects in Kenya
At a glance
- The Climate Change (Non-Market Approaches) Regulations, 2026 (Regulations) mark an important development in Kenya’s evolving climate change regulatory landscape.
- The Regulations, which were gazetted on 12 February 2026, are particularly significant because they reflect a broader policy shift towards establishing a legal framework for non-market approaches (NMAs) to climate change in Kenya.
- By formally recognising NMAs, Kenya is creating space for climate initiatives that prioritise resilience, sustainable development, technology transfer, community benefits and public-private collaboration without necessarily relying on carbon-credit monetisation.
In Kenyan law, the concept of NMAs is anchored in the Climate Change Act, Cap. 387A, which defines non-market approaches as approaches intended to promote mitigation and adaptation ambition, enhance public and private sector participation in implementing nationally determined contributions (NDCs), and enable co-ordination across instruments and institutional arrangements. The First Schedule to the Regulations identifies a wide range of priority sectors and interventions that qualify as NMAs. These include:
- Adaptation and resilience measures, such as climate-smart agriculture, water resource management, ecosystem restoration and early warning systems.
- Mitigation initiatives, including afforestation and reforestation, sustainable waste management and low-emission transport.
- Clean energy development, including renewable energy projects, mini-grids, energy storage and clean cooking solutions.
The Regulations are broadly framed to apply to “each person engaged in non-market approaches”.
This is particularly significant for developers, investors and organisations involved in climate-related activities that are not structured around carbon-credit issuance or trading in Kenya. As such, initiatives aimed at advancing Kenya’s climate objectives and broader sustainable development goals, including renewable energy, resilience, adaptation, conservation and community-based sustainability initiatives, may fall within the scope of the Regulations, where no carbon credits are generated or traded.
Another central feature of the Regulations is the establishment of the National Non-Market Approaches Platform (Platform), maintained by the Climate Change Directorate (Directorate). The Platform serves as a submission platform for project proposals, public registry of approved projects and information-sharing mechanism for co-operation opportunities.
To obtain approval for projects, proponents are required to submit their proposals in the prescribed form to the Directorate. Projects are assessed against both domestic and international criteria. At the domestic level, key considerations include alignment with the national priorities, contribution to sustainable development, including poverty eradication, effective public participation where proposed projects are on community or public land and the existence of transparency mechanisms. Proponents must also demonstrate that their projects do not involve carbon credit transactions and do not duplicate existing initiatives.
For projects seeking international recognition under Article 6.8, eligibility requires that the proposed non-market approach demonstrates the ability to go beyond Kenya’s NDCs, including through scalable mitigation and adaptation interventions, multi-stakeholder participation from the public, private and civil society sectors and the ability to mobilise international support. Taken together, these requirements create an important due-diligence consideration for NMA project proponents.
The Directorate will, where necessary, constitute a multi-stakeholder committee to review the application. The committee is then required to provide its recommendations within 30 days, after which the Directorate must issue its decision to the proponent within 90 days. Where an application is declined, written reasons must be provided, and the proponent may request a review of the decision.
FPIC, community rights and public engagement
The Regulations establish a set of mandatory safeguards that apply to all NMAs. They require that all projects respect human rights and fundamental freedoms, promote gender equity and consider vulnerable groups, facilitate meaningful public participation, and secure free, prior and informed consent (FPIC) where community land is involved. Conceptually, FPIC originates from international best practice on community and indigenous rights in land and resource governance. In the Kenyan context it aligns closely with constitutional principles of public participation, transparency and protection of community land rights. In practice, FPIC requires far more than formal consultation or a single stakeholder meeting. It demands a genuine, transparent and well-documented process of engagement that enables affected communities to meaningfully understand proposed activities, assess their potential impacts, and influence decision-making.
FPIC is further reinforced by the provisions of the Community Land Act, Cap. 287 (Community Land Act). Section 36 of the Community Land Act imposes specific requirements for investments in community land. It provides that such investments be preceded by a free, open and consultative process involving the relevant community. The Community Land Act further requires that investment agreements address key issues such as environment, social, cultural and economic impact assessments, stakeholder consultations and community participation, monitoring of project impacts and arrangements relating to compensation. Importantly, the act also establishes a threshold for community approval. Any agreements between investors and communities are only valid if approved by at least two-thirds of adult community members at a properly convened community assembly meeting, called to consider the offer and at which a quorum of two-thirds of the adult members of that community is represented.
For proponents, these requirements create important compliance and governance considerations. Projects that fail to demonstrate meaningful community engagement and participation or adequate environmental and social safeguards may face regulatory rejection, delays or disputes. Effective FPIC therefore requires ongoing communication, representative engagement, culturally appropriate consultation methods and documentation demonstrating that affected stakeholders were meaningfully involved throughout the project lifecycle.
Practical implications for climate projects
The Regulations create both opportunities and governance obligations for organisations operating in the climate and sustainability sectors. They provide clarity on the implementation of Article 6 of the Paris Agreement by extending Kenya’s regulatory framework beyond the carbon-market mechanisms established under the Climate Change (Carbon Markets) Regulations, 2024.
The Regulations also create opportunities for projects to be recognised as eligible NMAs within the broader framework of international climate cooperation under Article 6.8 of the Paris Agreement. Projects that relate to renewable energy, ecosystem restoration, sustainable development, and climate resilience will be well-positioned to attract financing opportunities due to the existence of a formal NMA framework that enhances regulatory certainty and investor confidence.
At the same time, the Regulations introduce ongoing governance, reporting and stakeholder-engagement obligations. In addition to seeking project approval, project proponents must submit annual progress reports on the implementation of their projects. Compliance obligations therefore extend beyond the initial project approval stage and require continued oversight throughout the project lifecycle.
Viewed more broadly, the Regulations signal a shift in how climate-related investment and international climate co-operation will be structured in Kenya. By formally recognising NMAs, Kenya is creating additional pathways for climate initiatives centred on resilience, sustainable development, technology transfer, community benefits and public-private collaboration without necessarily relying on carbon-credit monetisation. For investors, developers and organisations operating in the sustainability sector, understanding the scope and practical implications of the Regulations will become increasingly important when structuring projects and assessing long-term project viability in Kenya.
FAQs
What are the Kenya Climate (Non-Market) Regulations?
The Climate Change (Non-Market Approaches) Regulations, 2026 (Regulations) are regulations that were gazetted in Kenya on 12 February 2026 and establish a legal and institutional framework for non-market approaches (NMAs) to climate action in Kenya. Unlike carbon-market mechanisms that focus on generating and trading carbon credits, these Regulations support climate initiatives that advance mitigation, adaptation, resilience and sustainable development outcomes without reliance on carbon-credit transactions. They operationalise Article 6.8 of the Paris Agreement and apply broadly to public and private actors engaged in climate-related activities outside carbon markets.
What is the Kenyan Non-Market Approaches Platform?
The Kenyan Non-Market Approaches Platform is a central co-ordination and governance mechanism established under the Regulations and maintained by the Climate Change Directorate. It functions as a submission system for NMA project proposals, a public registry of approved initiatives, and an information-sharing tool for climate co-operation opportunities.
What is free, prior and informed consent (FPIC)?
Free, prior and informed consent (FPIC) in the Kenyan context is a principle requiring that communities are meaningfully engaged before decisions are made about projects affecting their land, resources or livelihoods. The Regulations particularly reference FPIC by requiring that projects are designed and implemented in a manner that ensures FPIC where projects involve community land. FPIC is reinforced by constitutional principles of public participation and the Community Land Act, Cap. 287 in Kenya. It goes beyond consultation intended to tick a box to structured engagement processes, documented participation and involvement of the community throughout the lifecycle of projects. All project proponents, regardless of their legal status must demonstrate compliance with FPIC.
What bad practices should businesses avoid when obtaining FPIC?
Businesses should avoid treating FPIC as a procedural formality or a one-off meeting. Common bad practices include engaging communities only after key project decisions have already been made; providing overly technical or inaccessible information that local communities cannot understand; excluding women, youth or marginalised groups from consultations; relying solely on local elites; or failing to disclose potential environmental and social risks. Other problematic approaches include compressing engagement into a single meeting, using coercive or misleading messaging, or failing to document engagement processes properly. Such practices can undermine the legitimacy of consent and expose projects to legal disputes or reputational risk.
What should climate project developers in Kenya do now?
Developers should begin by assessing whether their projects fall within the scope of the Regulations, particularly if they involve renewable energy, resilience, adaptation, or community-based climate interventions. Early-stage stakeholder mapping is also critical, especially where community land or vulnerable groups may be affected.
Project proponents should also integrate FPIC-aligned engagement into project design from the outset, rather than treating it as a later compliance step. This includes ensuring clear communication materials, inclusive consultation processes, and proper documentation of engagement activities. In addition, developers should seek legal or climate advisory support before engaging in NMA projects in Kenya to ensure alignment with Kenya’s evolving climate change regulatory landscape.
The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2026 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com.
Subscribe
We support our clients’ strategic and operational needs by offering innovative, integrated and high quality thought leadership. To stay up to date on the latest legal developments that may potentially impact your business, subscribe to our alerts, seminar and webinar invitations.
Subscribe