6.5 Funding including Climate Funds

The Least Developed Countries Fund (LDCF): The LDCF was established to meet the adaptation needs of least developed countries (LDCs). Specifically, the LDCF has financed the preparation and implementation of National Adaptation Programs of Action (NAPAs) to identify priority adaptation actions for a country, based on existing information. The financial instrument/delivery mechanism used by the LDCF is grants. The Global Environment Facility (GEF) administers the LDCF and Operational Focal Points (OFPs) are responsible for coordination in country. The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point.

The Special Climate Change Fund (SCCF): The SCCF was established to address the specific needs of developing countries under the UNFCCC with respect to covering incremental costs of interventions to address climate change relative to a development baseline. Adaptation to climate change is the top priority of the SCCF and in addition to this, it finances projects relating to technology transfer and capacity-building in the energy, transport, industry, agriculture, forestry, and waste management sectors. The SCCF is administered by the GEF and its financial instrument/ delivery mechanism is grants. The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point.

The Pilot Program for Climate Resilience (PPCR): The PPCR provides funding for climate change adaptation and resilience building. It aims to pilot and demonstrate ways in which climate risk and resilience may be integrated into core development planning and implementation by providing incentives for scaled-up action and initiating transformational change. It is a targeted program of the Strategic Climate Fund (SCF), which is one of two funds within the Climate Investment Funds (CIF) framework. The financial instrument/ delivery mechanism for the PPCR is grants and loans. The CIF Secretariat is housed at the World Bank. The Africa Climate Change Fund (ACCF): the ACCF aims to support African countries transition to climate-resilient and low carbon mode of development, as well as scale-up their access to climate finance. The ACCF serves as a catalyst with a scope broad enough to cover a wide range of climate-resilient and low-carbon activities across all sectors. Priority for funding is given to the following themes: supporting small-scale or pilot adaptation initiatives to build resilience of vulnerable communities; and supporting direct access to climate finance. The ACCF gives grants and launches calls for proposals periodically. The Secretariat is housed at the African Development Bank. The financing of climate action is anchored on the Kenyan constitution.

The Climate Change Act, 2016 requires that deliberate Climate Change considerations are made to ensure mainstreaming in all government plans, policies and programmes, resulting into inbuilt public climate financing of all sectors of the economy. The Climate Change Act, 2016 further created a Climate Change Fund to facilitate climate action. The National Treasury is the National Designated Authority (NDA) for climate finance in Kenya and oversees the implementing entities for various climate finance streams.

The Kenya County Climate Change Fund (CCCF) Mechanism: This improves a County’s readiness to access and disburse national and global climate finance to support community-prioritised investments to build climate resilience, and 5 Counties have so far established CCCFs. The CCCFs are aligned with national priorities set out in Kenya’s National Adaptation Plan (NAP) and enable these County governments to strengthen and reinforce national climate change policies while delivering on local adaptation priorities. The expansion of the CCCF across the country is one of the priorities in the Kenya National Climate Change Action Plan, 2018-2022.

Several areas are recommended for capacity building for the UEP implementation, with the Municipality and departmental upskilling alongside partnerships and institutional structuring. These would support the effective and integrated approach to sustainable and inclusive economic sector development; infrastructure delivery, operation, and maintenance; and climate resilience future-proofing development.

Project implementation

Capacity building in project preparation, project management, and delivery and maintenance from the Municipality, particularly when it comes to revenue generating activities and how to ensure revenue is received and used, is recommended. The need to work with the private sector for the delivery of urban services and projects is increasing in importance and requires knowledge and skills to support effective implementation of market-driven solutions including PPP mechanisms. The UEP promotes an integrated approach to development and there is a need to ensure silo thinking is removed from planning and delivery. This enables an understanding of what needs to come first in the development process, and the wider dependencies and synergies involved. Data and digital tools

Effective data gathering and analysis will support the monitoring of strategic objectives for the Municipality, including UEP project implementation, where capturing stakeholder information can be a key element of this. Data management of Municipality services, such as waste management, public transport service and open space maintenance, will support the Municipality in responding to its resident and business needs as well as monitoring the impact of these services. It is also recommended that digital platforms be developed, with business and community involvement, to better coordinate and deliver in the first instance, boda boda services and support online trading and supply chain linkages.

Climate resilience

It will be important for the Municipality to develop an understanding of climate change impacts across different sectors, and exposure to risks and vulnerabilities. Such knowledge should be mainstreamed throughout services and projects to ensure resilience is embedded. The capacity and capability to access available funds (set out in section 7.4) should be improved.

Building capacity among key planners and decision-makers so that climate change can be more widely integrated into County sector and development plans will help ensure that climate risks are adequately considered, and that the Municipality is well-positioned to identify any potential opportunities arising. Opportunities might take the form of attracting investment for climate-resilient investment programmes, or proactively identifying and supporting new business ventures which respond to changing conditions and consumer demand. More specific recommendations are provided further below in Appendix C.

COVID-19 lessons and emergency response

Strengthening preparedness and emergency response capacity is critical. This means better preparedness in terms of financing, service delivery and business continuity including budgeting for future crises, emergency operations centres, capacity building, drills, and human resources redeployment plans. This capacity building is recommended for KKM, where a cross-sector taskforce would be a recommended structure. Social inclusion

It is recommended that the Municipality and its departments are supported in their understanding and upskilling around social inclusion, including Social Inclusion Awareness Creation for the Municipality and its stakeholders to embed a shift in attitudes and reduce discrimination. This is important to open up socio-economic opportunities and infrastructure and services to all groups, improving social cohesion and addressing the significant outcomes of exclusion. This capacity building within the Municipality would suitably support the better application of inclusive contracts such as the Access to Government Procurement Opportunities (AGPO) policy. More specific recommendations provided further in Appendix D.

Economic opportunities and Value Chains

The Economic Sector Action Plans (Section 4.1) present recommendations around institutional structures and capacity to successfully develop the key sectors and realise the opportunity from the VC projects. Capacity building for the Action Plans incorporates the County’s educational facilities, the County Government and Municipality, the business community, local community and sectoral partners, where an Entrepreneurship Centre is aspired to as local capacity is built.

Considerations for social inclusion have been embedded into the development, design, prioritisation and proposed implementation of the Development Framework and the Economic Development Plan and VC projects. Apart from the specific recommendations for the different projects, key recommendations include:

> Continue supporting and expand local programmes such as

Wezesha, which have contributed to the empowerment and new economic opportunities for women, youth, and other vulnerable groups. > Ensure participation of all in the UEP planning, development, implementation, monitoring and decision-making. Stakeholder engagement should be a live process of the programme. > Commit to always engage SIGs and give them a chance to be informed, to contribute to decision-making, and actively give views on and participate in matters that affect them.

This needs to consider that SIGs are not homogeneous groups and that they face different challenges according to their age, gender, ethnicity, education levels, and ableness. > Always communicate to local residents and adjacent businesses about the implementation schedule of the different projects to mitigate the disruption of socio-economic activities. Provide accessible channels to receive and address complaints. > Ensure all communication is timely, and in formats and languages that are accessible for all. This may include material for visually impaired people (audio, Braille), for people with learning disabilities and literacy difficulties (audio, easy-to-read written material), for people with hearing impairments (written material, Sign Language), and for people with co-ordination difficulties (easy-to-read written material, audio). The material should also consider people with low-literacy levels. > Ensure quotas for PWD (established by the Persons with

Disabilities Act, 2003) are implemented and prioritise SIGs for the programme’s employment and capacity-building opportunities. Ensure all infrastructure adopts inclusive design standards. > For the GBI, involve local community groups, NGOs, agri-businesses and other private companies engaging in corporate social responsibility in the construction phase and for its maintenance. > The introduction of new climate-resilient approaches and technologies that support income generation, such as crops and for farming, should be affordable to avoid exclusion of low-income groups. Green jobs should also be available to

SIGs by providing them with the adequate training. > Establish a Gender and Social Inclusion Implementation

Unit, which will work under the leadership of the UEP implementation manager to ensure inclusivity proposals in the UEP are implemented and monitored.