The Climate Change (Non-Market Approaches) Regulations, 2026 (Regulations) have been gazetted by the Cabinet Secretary for Environment, Climate Change and Forestry, establishing a formal framework for the implementation of non-market approaches to climate action in Kenya. Non-market approaches are defined under the Climate Change Act (Act) as measures that promote mitigation and adaptation ambition, enhance public and private sector participation in the implementation of nationally determined contributions (NDCs), and facilitate coordination across relevant instruments and institutional frameworks. These are contrasted with market-based approaches, which rely on the generation and trading of carbon credits to achieve emissions reductions.
The Regulations align Kenya’s domestic framework with Article 6.8 of the Paris Agreement, which promotes voluntary cooperation on climate action outside market-based mechanisms, and are intended to enhance coordination, transparency and stakeholder participation in the implementation of Kenya’s NDCs.
Key highlights of the Regulations include:
Governance and institutional framework
- Climate Change Directorate (Directorate) – The Directorate established by the Act plays a central role in the implementation of the Regulations including:
- establishing and maintaining the National Non- Market Approaches Platform (Non-Market Approaches Platform);
- reviewing project submissions and making determinations on approvals; and
- coordinating the implementation of non-market approaches in line with national climate priorities.
- The Non- Market Approaches Platform – The Regulations establish a central platform to:
- facilitate submission of non-market approach projects by proponents;
- maintain a public record of approved projects, including their objectives, funding and implementation details; and
- support information sharing and cooperation among stakeholders.
- Ad hoc committees
The Directorate may constitute ad hoc committees to review project proposals, comprising representatives from: the Directorate, relevant county governments, civil society organisations; and research institutions.
Project design and safeguards
The Regulations require that all non-market approaches be designed and implemented in a manner that:
- upholds the human rights and fundamental freedoms;
- promotes gender equality and inclusion of vulnerable groups;
- ensures compliance with environmental laws and impact assessment requirements;
- incorporates public participation; and
- obtains free, prior and informed consent where projects involve community land.
Submission of non-market approaches projects
To implement a non-market approach, a project proponent must follow a structured process set out in the Regulations. This process involves the submission of a project proposal to the Directorate, which may be subject to technical review, and the obtaining of the necessary approvals prior to implementation. Approved projects are recorded on the national platform to promote transparency and facilitate coordination among stakeholders.
Criteria for reviewing non-market approaches:
In assessing proposed non-market approaches, the Directorate will consider whether the project:
- aligns with national climate priorities;
- avoids overlap with market-based mechanisms;
- contributes to sustainable development, including livelihoods and poverty reduction;
- demonstrates public participation, particularly where projects are implemented on public or community land; and
- incorporates transparency and accountability mechanisms.
The Directorate will also assess whether a project is suitable for international recording under Article 6.8 of the Paris Agreement, including whether it:
- contributes to mitigation or adaptation beyond Kenya’s NDC targets;
- facilitates multi-stakeholder participation; and
- enables mobilisation of international finance, technology or expertise.
Reporting on non-market mechanisms
The Regulations provide for reporting obligations to support oversight and accountability. The Cabinet Secretary is required to include information maintained on the national platform in annual reports submitted to Parliament. In addition, project proponents are required to prepare and submit periodic progress reports to the Directorate on the implementation of their non-market approaches, in accordance with the prescribed format.
Priority non-market approaches interventions
Project proponents are expected to align with the priority interventions set out in the Regulations, which include among others: climate-smart agriculture and ecosystem restoration; sustainable waste management and circular economy initiatives; renewable energy and clean cooking solutions; and climate resilience and adaptation measures. These priorities may be updated by the Cabinet Secretary through legal notice.
Conclusion
The gazettement of the Regulations underscores Kenya’s continued commitment to advancing a low-carbon and climate-resilient future, while broadening the country’s climate action framework beyond market-based mechanisms. The Regulations provide greater clarity on the development and implementation of non-market approaches and establish a structured framework for their coordination, approval and oversight.
As Kenya’s climate regulatory landscape continues to evolve, Bowmans will continue to monitor the implementation of the Regulations and provide timely updates on key regulatory and practical developments impacting stakeholders involved in climate action initiatives.
