The objective of this report is to conduct a preliminary options analysis of financing instruments suited to the Kenya context which can help Kenya, over time, to reduce the gap between the financing needs for climate and nature action and the actual funding the country can leverage from the government’s budget, development partners and capital markets. The long-term goal is also to contribute to tackling the current high costs of capital through instruments that can boost Kenya’s credit ratings, while enhancing the country’s natural capital. This work is not intended to deploy specific instruments. Instead, based on government guidance, this options analysis can form the basis for follow-on work, which may include structuring specific transactions of financing instruments deemed most appropriate by the Kenyan government.
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