NAIROBI, Kenya, Mar 18 – Kenya’s economy is increasingly at risk, with nearly half of its gross domestic product dependent on natural ecosystems that are under pressure from climate change, pollution and unsustainable land use, a new World Bank analysis shows.
The study, Nature’s Bottom Line: The Economic and Financial Costs of Ecosystem Degradation in Kenya, finds that 44 percent of the country’s GDP comes from sectors heavily reliant on nature, including agriculture, construction and real estate.
“44 percent of Kenya’s GDP comes from sectors that are highly or very highly dependent on ecosystem services,” the report notes, warning that environmental degradation is already translating into financial losses such as reduced crop yields and unreliable water supply.
Water-related ecosystem services, including clean water provision and flood control, have emerged as a major concern, with deforestation and land-use changes disrupting natural cycles and increasing supply risks for agriculture and industry.
The report adds that Kenya is facing “economic water scarcity,” where resources exist but are underutilised due to weak infrastructure and management systems.
It also warns that global sustainability standards could pose new risks to export-driven sectors, with agriculture and other high-impact industries accounting for about 68 percent of GDP.
The World Bank is now calling for coordinated action across government, industry and the financial sector to integrate natural capital into economic planning, including scaling up green finance and promoting conservation-driven investments.
