FLLoCA Program Drives Investment Growth in Counties Across Kenya

The Financing Locally-Led Climate Action (FLLoCA) programme, designed to channel climate financing directly to counties and communities across Kenya, has reported an increase of over 2400 projects at various stages of development across sectors, including agriculture, water, environment, and energy.

Implemented by the National Treasury and Economic Planning, FLLoCA aims to strengthen local climate resilience, enhance county and national capacity to manage climate risks, and deepen community participation by ensuring climate action reaches the grassroots level, with a total funding of approximately USD 295 million, supported by partners including the World Bank, and development agencies from Denmark, Sweden and The Netherlands and has been effective since 2022.

According to Peter Odhengo, Head of the Climate Finance and Green Economy Unit at the National Treasury and FLLoCA programme coordinator, the fund is increasingly unlocking local investment in sectors such as water, agriculture, and renewable energy. He highlighted a major shift in approach, with counties and communities now taking the lead in shaping and implementing projects aligned with their own climate and economic priorities, rather than central government direction.

Odhengo further explained that the initiative is moving away from grant dependency toward investment models designed to attract private capital, generate jobs, and build sustainable economic value at the county level.

Additionally, the program has directly benefited 1 million people, with a combined direct and indirect reach of 2.5 million beneficiaries, 56% of whom are women, through climate-resilient planning, preparation, surveillance, and response initiatives.

On the environmental front, 28,000 hectares of landscapes are now under enhanced conservation on sustainable management, covering both terrestrial and inland water areas. Additionally, 1,238 rural wards are now benefitting from program-funded, functioning resilience investments spanning agriculture, environment, water, and other prioritized sectors. The program, overseen by Kenya’s National Treasury and Economic Planning, underscores the government’s commitment to locally-driven climate action and gender-inclusive development.

Furthermore, the program has played a role in strengthening climate governance across all 47 counties, marking a major shift in how climate action is planned and implemented at the local level.

Key achievements include the establishment of 45 County Climate Change Funds and Climate Change Units, alongside widespread integration of climate priorities into county development budgets and planning frameworks. Counties have also enacted enabling legislation and policies to support climate finance and coordination, with strong institutional performance averaging an 87% assessment score.

At the community level, thousands of local committees are now actively involved in planning and implementing resilience projects, reflecting a deeper push toward inclusive, grassroots-driven climate action across the country.

While Kenya’s Financing Locally-Led Climate Action (FLLoCA) Program has recorded notable gains, it continues to face various implementation challenges. Some of the cited challenges include delays in procurement and project rollout as major constraints slowing down climate investments at the county level. Frequent staff turnover within county administrations has also weakened institutional memory and continuity, while in some regions, political interference has further complicated project delivery.

In addition, gaps in technical capacity among county teams have left some areas struggling to effectively manage increasingly complex climate finance initiatives. At the same time, rising community expectations driven by visible early successes are adding pressure on implementing agencies to accelerate delivery and expand impact, setting a higher bar for the program’s next phase.

Looking ahead, Kenya is setting a bold direction to strengthen its climate finance architecture and position itself as a regional leader.

Central to this vision is the proposed establishment of the Kenya Green Investment Bank, which is expected to mobilize up to USD 100 billion over the next decade to expand access to climate finance nationwide. The government is also moving forward with the Green Fiscal Incentive Framework under Sessional Paper No. 5 of 2024, alongside a Cabinet-approved Green Bonds Framework targeted at unlocking innovative financing mechanisms.

Regionally, Kenya plans to leverage the Africa Green Climate Finance Designated Authorities Network (AfDAN) to boost cross-border climate finance coordination across African Union member states. Additional efforts include setting up a National Climate Change Fund and scaling FLLoCA’s successful approaches across the continent, reinforcing Kenya’s position as a model for locally driven climate action in Africa.

Mark your calendars! The GreenShift Sustainability Forum is back in Nairobi this August. Join innovators, policymakers & sustainability leaders for a breakfast forum as we explore sustainable solutions shaping the continent’s future. Limited slots – Get your early bird tickets now – here. Email info@techtrendsmedia.co.ke for partnership requests.

Go to ECONEWS.co.ke for more sustainability news from the African continent and across the world.

Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke