91-day T-bill8.750%▲ 0.002
182-day T-bill8.851%▼ 0.008
364-day T-bill9.029%▲ 0.002
Central Bank Rate8.75%07/10/2026
Inflation6.8%September 2026
Top MMF yield10.46%Madison
Sources: CBK auction, 2 Nov 2026 value date (change vs 26 Oct); CBK key rates; fund managers' published yields, as at 31 Oct 2026.

How to Get Carbon Credits in Kenya: Registering a Project and Community Benefit Rules

How to Get Carbon Credits in Kenya: Registering a Project and Community Benefit Rules

Updated 31 October 2026

To get carbon credits from a project in Kenya, you register the project with the Designated National Authority (DNA), get a no-objection letter, develop it under a recognised carbon standard, and share benefits with the local community where the law requires. The rules are set by the Climate Change (Amendment) Act, 2023 and the Climate Change (Carbon Markets) Regulations, 2024. This guide explains the steps for farmers, community groups and businesses.

Updated October 2026.

What a carbon credit is

One carbon credit represents one tonne of carbon dioxide (or equivalent) either removed from the air (for example by planting trees) or kept out of it (for example by switching from charcoal to clean cooking). Credits are verified by independent auditors under a standard such as Verra or Gold Standard and sold to companies or governments that want to offset emissions.

Who can earn carbon credits in Kenya?

  • Landowners and farmers planting trees, restoring land or improving soil carbon
  • Community groups managing forests, rangelands or mangroves
  • Businesses running clean cooking, renewable energy, biogas or waste projects
  • Developers aggregating many smallholders into one project

In practice, a single small farm rarely earns enough credits to cover verification costs alone. Most smallholders join a larger project run by a developer who handles the paperwork and shares revenue.

Step-by-step: how to apply for carbon credits in Kenya

  1. Design the project. Decide the activity, area, baseline (what would happen without the project), expected credits and which carbon standard you will use.
  2. Submit a Project Concept Note (PCN) to the DNA using the prescribed form, with minutes approving the project and the prescribed fee. The PCN covers project details, location and GPS points, stakeholders, baseline, expected credits, costs and benefits, the carbon standard, and environmental and social safeguards (including an Environmental and Social Impact Assessment where applicable).
  3. Get a no-objection letter. Under the regulations, the DNA should respond within 14 days if requirements are met.
  4. Sign a Community Development Agreement if the project is on public or community land.
  5. Develop and validate the project under your chosen standard, then monitor, verify and issue credits.
  6. Sell the credits to buyers directly or through brokers and registries.

Community benefit rules

Project type Minimum share to the community
Land-based projects on public or community land At least 40% of the previous year’s aggregate earnings, less business costs
Non-land-based projects At least 25% of the previous year’s aggregate earnings, less business costs
Private projects on private land Exempt from the mandatory share

Analysis by law firm Bowmans summarises these rules. The Community Development Agreement sets out how the money is shared and spent.

Red flags when a developer approaches your community

  • No DNA registration or no-objection letter
  • Pressure to sign quickly, without independent legal advice
  • Contracts that lock land for decades with vague revenue terms
  • No clear statement of the carbon standard or who audits the project

Land deals need care: before signing anything that affects land, do a search as explained in how to do a land search on Ardhisasa.

Is carbon farming worth it?

For smallholders, carbon income is usually a bonus on top of what the trees, crops or livestock earn, not a main income. Projects that also improve yields, fodder or water tend to deliver the most value. Ask any developer for a written estimate of credits, the expected price, the revenue split and when payments start.

FAQ

Who approves carbon projects in Kenya?

The Designated National Authority under the Climate Change Act, which issues no-objection letters for projects.

How much must carbon projects share with communities?

At least 40% of the previous year’s aggregate earnings less costs for land-based projects on public or community land, and 25% for non-land-based projects.

Can a small farmer sell carbon credits?

Usually through a larger aggregated project, because verification costs are high for one farm.

What law governs carbon markets in Kenya?

The Climate Change (Amendment) Act, 2023 and the Climate Change (Carbon Markets) Regulations, 2024.

Related: Kenya lost KSh48bn in forest wealth in five years even as tree cover grew, KNBS says

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About Author

Norah Waceke is a business journalist and editor at Business Radar with more than eight years of experience covering Kenya's economy, companies and markets. She previously worked at one of Kenya's leading digital news platforms, where she reported on business, finance and current affairs. A graduate of Multimedia University of Kenya, Norah focuses on clear, accurate reporting that helps readers understand the money stories shaping their lives and businesses.

More from Norah Waceke · Editorial policy

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