NAIROBI, Kenya, Feb 16 – Experts are calling for sustained and structured funding for young innovators to strengthen Kenya’s climate resilience, warning that failure to invest could deepen economic losses linked to climate change.
Speaking at Capital FM’s Climate and Sustainability Breakfast held at Karura Forest in Nairobi, policymakers and financiers said climate change is already affecting Kenya’s economy, from food production and insurance pricing to jobs, capital markets and overall competitiveness.
Capital FM Managing Director Symon Bargurei said the climate crisis should be treated as an urgent economic and governance issue.
“Kenya is expected to lose 3–5 percent of its GDP to climate-related shocks annually, including drought, floods and climate-related risks. Across Africa, adaptation costs are projected between 30 and 50 million per year by the year 2030, yet funding remains significantly below what is required,” he said.
He noted that climate shocks are disrupting agricultural productivity, straining public finances and increasing the cost of doing business.
Panelists said food systems remain among the most vulnerable sectors, with recurrent droughts and erratic rainfall pushing up food prices, reducing output and increasing reliance on imports. They argued that supporting youth-led agribusinesses and climate-smart enterprises could strengthen local value chains and cushion communities from supply disruptions.
Beyond agriculture, climate risks are influencing insurance premiums and investment decisions, with insurers adjusting pricing due to higher exposure to floods and drought. Investors are also factoring climate risks into portfolios, raising the risk of higher borrowing costs for countries that lag in resilience efforts.
Youth and Climate Justice expert Paul Kaluki emphasized the need to move beyond short-term grants toward sustainable business models.
“We need to get out of there, bigger cities, going to the communities, if you first build their capacity, give them grants, and then mentor them across the years, you’ll be surprised these young people actually end up creating social enterprises that break the funding cycle,” he said.
“So how do you meet the funding demand? You need to find the people. You need to allow the people the flexibility to design what systems, what projects, and what works they want implemented,” he added.
Village Capital Senior Associate Njeri Wakaba said climate startups require patient capital to test and refine their models.
“Entrepreneurs are the ones who are going beyond theory, and they’re the ones who are building their solutions. So not just policies. A big part of the work that we do at Village Capital is matching entrepreneurs with the right capital,” Wakaba said.
She noted that renewable energy, circular economy and climate-tech ventures often need longer timelines to validate products and reach profitability.
Participants said scaling youth-led climate enterprises could unlock green jobs and position Kenya as a regional leader in sustainable finance and innovation.
They concluded that blending grants, concessional finance and long-term investment will be critical to stabilising food systems, protecting GDP and safeguarding Kenya’s long-term economic future.
