As climate finance flows increasingly toward the Global South, Africa is positioning itself as the world’s next major carbon frontier. From Kenya’s arid lands to the Congo Basin’s dense forests, the continent holds more than a fifth of the world’s carbon storage potential. Yet the big question remains, who truly benefits?
At the heart of Kenya’s participation is the Kasigau Corridor REDD+ Project, one of the continent’s longest-running carbon offset initiatives. Launched over a decade ago, it covers more than 200,000 hectares between Tsavo East and Tsavo West National Parks. The project aims to reduce deforestation while supporting local livelihoods through carbon credit sales to international buyers.
Tracing the Money
Carbon markets were meant to bridge global responsibility, allowing industrialized countries to offset emissions by investing in sustainable projects in developing nations. However, the transparency of that financial flow is often murky.
In Kasigau, revenue from carbon credits funds water projects, education bursaries, and women’s enterprises. Yet local leaders say that payments can be irregular and difficult to trace beyond project-level reports.
“Communities have seen positive change, but there’s still a need for more transparency about how much money comes in, and where exactly it goes,” says a local conservation officer in Taita Taveta County.
According to the African Carbon Markets Initiative (ACMI), launched at COP27, Africa’s carbon market could grow from $900 million today to $6 billion by 2030 if governance and verification mechanisms are strengthened.
Kenya’s Push for Regulation
Kenya is among the few African countries developing a legal framework to manage carbon trading. The Climate Change (Amendment) Act 2023 gives the government authority to regulate carbon credit projects, ensuring local participation and equitable benefit sharing.
The Ministry of Environment says the upcoming National Carbon Registry will make it easier to monitor carbon projects and prevent double counting of credits, a problem that has dogged voluntary markets globally.
“This is not just about selling credits,” says a senior official at the Climate Change Directorate. “It’s about ensuring communities who conserve forests are compensated fairly and that Kenya benefits as a nation.”
Balancing Growth and Equity
Critics warn that Africa’s growing carbon economy risks becoming another form of exploitation where developed nations “buy their way out” of emissions reductions while African communities bear the ecological burden.
However, experts like Dr. Fatih Birol from the International Energy Agency argue that properly regulated carbon markets could unlock unprecedented green investment, helping countries finance reforestation, renewable energy, and land restoration programs.
“The key is balance, protecting community interests while attracting credible climate finance,” Birol notes.
A Continental Awakening
Across the continent, countries like Gabon, Ghana, and Rwanda are also developing national carbon trading policies. At the same time, civil society organizations are demanding that contracts between governments and investors be made public.
For many Africans, the conversation is shifting from “who pays” to “who benefits.” In a continent that contributes less than 4% of global emissions yet bears the heaviest climate costs, carbon markets could be both opportunity and trap depending on how they are managed.
As Kenya refines its policies and projects mature, the success of its approach could offer a blueprint for the rest of Africa: an example of how to turn green promises into equitable prosperity.
