Adaptation finance to local food systems in Kenya

Daniel Adeniyi (2023) Adaptation finance to local food systems in Kenya. Discussion Paper 348 ECDPM # 34 p.

The financing landscape for climate adaptation in Kenya is diverse, yet, overall funding is insufficient, while local adaptation demands continue to grow. At the same time, it is unclear how existing adaptation financing reaches food systems at the local level. The paper investigates the mechanism of food system adaptation financing flows to the local level in Kenya and it determines what works and what does not.

Clearly, the availability of, and access to, adaptation finance is constrained by structural, technical, and institutional barriers both nationally and locally. The governance of adaptation finance is marked by horizontal and vertical coordination issues visible among actors. There are diverse institutional and procedural requirements from adaptation financing partners which have resulted in a fragmented adaptation finance landscape, with implications for local-level adaptation. The governance architecture for food system adaptation financing includes both top-down and bottom-up processes. However, decision-making power is mainly held by national and international players, with consequences for local-level adaptation. Nonetheless, there are some initiatives with processes that are characterised by local ownership.

Actors need to improve their coordination to address climate adaptation finance gaps and ensure the delivery of it to the local level in an equitable and just manner. Progress in devolving finance for food system adaptation to the local level will be determined not only by the size of the finance but also by the careful design of the governance mechanisms to allow equitable allocation, subsidiarity, participation, and local ownership. The paper concludes with recommendations for increased local-level adaptation finance for food systems.

Download the paper 

Related: Key elements of the EU-Kenya Economic Partnership Agreement

The EU and Kenya have concluded today the negotiations on an ambitious trade agreement through which they will implement bilaterally the regional Economic Partnership Agreement (EPA) between the EU and the Eastern African Community (EAC).

The agreement, which will bring about an important boost for trade in goods, contains substantial development and cooperation elements and is the first and most ambitious trade deal with a developing country to contain strong commitments on sustainability.

The EU is Kenya’s second largest trading partner, and Kenya’s most important export market. Total trade between the EU and Kenya reached €3.3 billion in 2022, with an increase of 27% compared to 2018.

EU’s imports from Kenya are €1.2 billion and are mainly vegetables, fruits, and flowers. EU exports to Kenya amount to €2.02 billion and are mainly mineral products, chemical products, and machinery. The EU is the first export destination for Kenya, with 16% of its total exports in 2022, followed by Uganda (12%) and USA (8%).

Agriculture, industrial development and diversification of trade

• Provisions on agriculture will aim at sustainable agricultural development, including food and nutrition security, rural development, including the sustainable use and management of natural and cultural resources, and income and job creation in the agricultural sector in Kenya. These measures will guarantee that the EU will not apply export subsidies for agriculture products, even in times of market crisis.
• Provisions on animal and plant health and hygiene (sanitary and phytosanitary - SPS) measures will allow, among others, to address animal and plant health-related trade issues, promote the harmonisation of intra-regional standards in accordance with international standards, and enhance the capacity of Kenya to implement and monitor these measures. Nothing in the agreement changes the way the EU adopts and enforces its food safety rules for imports, which are the same for domestically produced and imported products.
• The EU and Kenya will reinforce joint work on SPS matters and engage in a policy dialogue on agriculture and food security, which will include transparency on their respective domestic policies.
• EU development assistance, through trade capacity-building measures, will support farming and rural employment, and farmers' capacity to comply with agricultural standards. This alignment of standards will make it easier to comply with the requirements necessary to bring those products into the EU and open trading opportunities in the agricultural sector.