Perceived Determinants Of Climate Financing In Kenya

Abstract

Climate change is causing increasing worry worldwide, regionally, especially in Kenya. The government's budgetary allotment has consistently been insufficient, forcing the use of alternative funding sources. Dealing with climate change by developing countries is difficulty due to low-income levels far below those of developed countries; this has posed a challenge in financing climate change initiatives in this region. Climate financing initiatives and global participation is key to provide funding to address climate change hazards globally. The major goal of this research was to examine the factors that influence climate finance in Kenya. The study was guided by three particular objectives, which was as follows; explore how media influences climate financing in Kenya, determine the influence of capital strength on climate financing decisions in Kenya, examine the influence of politics on climate financing decisions in Kenya. The theories on which the study was based on include Agenda setting theory, signaling theory and capital structure and stakeholders’ theory. Additionally, descriptive research design was adopted for the study. Senior officers from the 4 GCF accredited institutions and 9 institutions under review for accreditation to lend money for climate financing in Kenya. Primary data was collected using a structured questionnaire comprising of both closed-ended and open-ended questions. The responses were gathered using quantitative data analysis. The study investigated the connection between the climate financing as the dependent variable, and media publicity influences, capital strength, and incentive effects as the independent variables, using a multivariate linear regression model. The study found and concluded that media (p=.038), capital strength (p=.008) and political connectedness (p=.000) significantly and positively influenced the climate financing. The study recommends that in order to improve the media’s role in climate financing, the government should develop and install a customized communication system which would be focused on climate and management of climate projects and this would promote the participation of the stakeholders in financing and managing the climate projects. Further recommends that the government should impose mandatory taxes in all the manufacturing sectors/companies with the aim of mobilizing and reinforcing the resources focused on the management of climate projects. This way the climate capital would be strengthened for climate financing in the near future. Finally, the study recommends that the government should invest in activities that promote the political will and connectedness customized to management of climate projects. The lack of insufficient support by the governments in the world have led to stalled/slow/compromised implementation/management of climate projects.