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Economy

How Kenya Loses Ksh900 Billion Every Year

Judith MwauraBy Judith MwauraApril 24, 2025No Comments3 Mins Read
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Environmental experts have raised the alarm, warning that Kenya may be losing over Ksh900 billion annually due to the worsening effects of climate change.

This huge financial loss could increase to trillions in the coming years if the country does not take immediate and effective action to address the crisis.

According to renowned environmentalist Dr. Kalua Green, both the Kenyan government and its citizens must step up and lead global efforts to combat climate change.

He emphasized that Kenya is among the most vulnerable countries to climate-related disasters, making it crucial for the country to take a leadership role in developing solutions.

Speaking during the launch of the Institute for Sustainability and Climate at the International Leadership University, Dr. Kalua highlighted that Kenya still has the chance to reverse the damage if quick and strategic measures are put in place.

“We are among the most affected by climate change, and that gives us not only the moral responsibility but also the urgency to take charge.

Our institutions have what it takes to develop real and long-term solutions,” he said. His comments follow recent findings that reveal Kenya could be losing close to Ksh900 billion each year—amounting to roughly 3% to 5% of the country’s total economic output (GDP)—due to climate-related issues.

These problems include extreme weather events like floods and droughts, reduced agricultural productivity, destruction of property and infrastructure, and economic instability in climate-sensitive sectors such as farming and tourism.

If nothing changes, experts warn that the country could suffer economic losses of up to Ksh15 trillion by the year 2039.

However, such a disastrous future can be avoided if proper interventions and policies are implemented without delay.

On the government’s part, President William Ruto has unveiled a bold plan to plant 15 billion trees across the country by the year 2032.

This initiative is aimed at turning Kenya into a model for environmental conservation and sustainability on a global scale.

While the programme has sparked hope among many citizens, it has also faced criticism from some political leaders who argue that certain individuals may be using the project to serve personal interests.

Despite this, Environment Cabinet Secretary Deborah Barasa recently stated that reaching the milestone of 783 million trees planted is a clear sign of progress.

In addition to government actions, experts are calling on higher education institutions across Kenya to do more than just teach the science behind climate change.

Universities and colleges are being urged to create practical programs and initiatives that actively help reduce the impact of climate change in the country.

Educational institutions are now seen as vital players in the fight against climate change, not only by raising awareness but also by coming up with innovative solutions that can help Kenya move toward a more sustainable and climate-resilient future.

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Judith Mwaura is a dedicated journalist specializing in current affairs and breaking news. She is passionate about delivering accurate, timely, and well-researched stories on politics, business, and social issues. Her commitment to journalism ensures readers stay informed with engaging and impactful news.

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