Kenya sharpens industry focus in new NDC
Kenya’s emerging industrial sector accounts for a modest 5 per cent of the country’s overall CO2 emissions. So why is this sector in the spotlight as the country develops its new climate plan?
Like in many Emerging Markets and Developing Economies (EMDEs), Kenya’s industrial sector is growing fast. As the country updates its Nationally Determined Commitments (NDCs) under the Paris Agreement, prioritizing this sector can put it on a low-carbon trajectory, opening up a host of opportunities, says Gideon Oele, a Director of Industries, State Department of Industry in Kenya’s Ministry of Investments, Trade and Industry.
“As markets increasingly demand low-carbon products, by sharpening the focus on industry in Kenya’s enhanced NDC, we are building a competitive edge, while also addressing the climate crisis,” Mr. Oele said.
Kenya’s Ministry of Investments, Trade and Industry is responsible for providing industrial sector inputs to the NDC enhancement process, which is coordinated by the Ministry of Environment, Climate Change and Forestry. Supporting these two bodies, in December 2024, the Net Zero Partnership for Industrial Decarbonization (NZP-ID) led a three-day workshop to explore the options for industrial decarbonization in Kenya.
Snapshot: Kenya’s industrial sector
Kenya’s industrial sector includes food and beverages, textiles and apparel, chemicals, cement, and building materials – employing around 8 per cent of the labour force. With the government enacting strong regulatory reforms to simplify foreign and local investments, this sector, and its energy needs, are expected to grow fast in the coming years. As a result, this sector will be increasingly important for ensuring job security and economic development. To learn more, the recently published Preliminary Roadmap for Decarbonization analyses Kenya’s emerging industrial sector and presents a preliminary decarbonization roadmap.
Now is the moment
High-level representatives from relevant government departments, including the ministries of environment, energy and industry, joined academics and industrialists for the workshop, which was held in Machakos, on the outskirts of the capital, Nairobi.
The focus was on heavy industries, as the sector’s largest source of emissions is from cement production, which accounted for nearly 97 per cent of all industrial emissions in 2022. Meanwhile, steel production is gaining momentum as the government seeks to capitalize on its natural iron-ore resources.
“The NDC targets being set by Kenya now will guide the country through to 2035. At the same time, industrialists are making investment decisions that will shape the future for decades to come,” Mr Oele said. “This is the critical moment to design the right mix of policies, measures, incentives, finance, and technologies needed to achieve emissions reduction goals,” he said.
“The workshop gave different stakeholders a chance to learn more about the emerging and sometimes complex technologies and approaches of heavy industry decarbonization,” said Tomasz Pawelec, a policy expert with NZP-ID. “It was also an opportunity to discuss the best ways for Kenya to move their growing sector onto a low-carbon pathway,” he said.
For example, using less clinker is a way to reduce emissions from cement production. With Kenya’s abundant natural deposits of volcanic ash, cement producers are already substituting this “greener” substance for clinker.“Sustained support is now needed to advance this kind of innovation,” Mr. Oele said. In addition, the government is also keen to explore options like carbon capture, utilization and storage (CCUS) after participating in a recent UNIDO-supported study tour, he added.
What does it mean when industry is included as part of an economy-wide target?
In its new NDC, Kenya will include a stronger definition of the industrial sector as part of an economy-wide target. This means that emissions reductions are calculated across all major sectors, such as energy, transport, agriculture, and industry, fostering cross-sectoral coordination that maximises national climate impact. This comprehensive approach allows countries to achieve deeper, more balanced reductions across their economies and ensures that all sectors work towards shared climate goals. In Kenya, it will be important that a strong data collection and sharing system underpins the implementation of the economy-wide target. To learn more about including industry in NDCs, check out UNIDO’s new Support Package aimed at guiding EMDEs as they set realistic, industry-specific targets and plans.
Mitigation measures prioritized
As a step towards fostering important solutions like these, workshop participants agreed on five priority measures to be included for the industrial sector as part of an economy-wide NDC goal. “These were specifically for cement, but will be relevant and useful for decarbonizing the entire sector,” said Mr. Pawelec. These measures include continuous energy efficiency improvements, while supporting a shift to alternative fuels derived from waste and hydrogen. Further reducing the clinker-to-cement ratio is also among the priorities, alongside more research, innovation and demonstration of CCUS. Kenya will also explore introducing policies such as green public procurement and requirements for using low carbon materials in public construction.
Seeing is believing
A highlight of the workshop was a visit to the East African Portland Cement Factory, one of the largest cement manufacturers in the country, serving both national and regional markets.
During the cement factory tour, participants saw first-hand how one of the key building materials for our societies is made. “It was very insightful for everyone to see how the process actually works and to discuss the measures that industry is already using to reduce emissions,” Mr. Oele said. “For example, they’re using waste heat for preheating, they’re introducing energy efficient equipment, and of course, they are reducing the amount of clinker by using locally-sourced alternative materials,” he said.
At the site, industrialists also shared some of their challenges, such as the large investments needed to switch to alternative fuels. “This is where the right policies and government incentives can really help, giving the sector confidence to invest,” Mr. Pawelec said.
Leverage South-South knowledge exchange
Following the workshop, participants requested more capacity-building opportunities, especially as industrial decarbonization is an emerging and specialised area. “We are most interested in knowledge-sharing opportunities with countries facing similar challenges,” Mr. Oele said. “This can inspire innovative solutions and regional collaboration,” he said.
In the immediate-term, the NZP-ID team will continue to provide any support needed to strengthen the industrial sector elements as Kenya finalizes and submits its NDC. Further to this, NZP-ID will also support the country to develop a cement sector decarbonization roadmap. Part of this work will involve designing a robust emissions monitoring and reporting system. The team will also look into knowledge-sharing opportunities for countries facing similar circumstances.