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
- Design the project. Decide the activity, area, baseline (what would happen without the project), expected credits and which carbon standard you will use.
- 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).
- Get a no-objection letter. Under the regulations, the DNA should respond within 14 days if requirements are met.
- Sign a Community Development Agreement if the project is on public or community land.
- Develop and validate the project under your chosen standard, then monitor, verify and issue credits.
- 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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