Kenya Could Lose 7.25% of GDP to Climate Change –World Bank

  • In recent years, Kenya has been suffering from the effects of global heating, including prolonged droughts.
  • The report states that Kenya could seize opportunities created by the global decarbonisation trend and create green jobs.

Kenya could lose up to 7.25 per cent of its economic output by 2050 if it does not take decisive action to adapt to climate change and mitigate its effects. The World Bank said in a new publication called Kenya Country Climate and Development Report, “By 2050, inaction against climate change could result in a decline in real GDP of 3.61–7.25 per cent.” In recent years, Kenya has been suffering from the effects of global heating, including prolonged droughts.

The report stated, “A higher annual growth rate and structural transformation could partly buffer the impact of climate change on the economy. If Kenya’s economy grows by 7.5 per cent annually through 2050, in line with the government’s target, the damage of climate change to economic output would drop to 2.78 to 5.3 per cent.” However, the World Bank called for increased investments in water resources management, farming, energy, transport and digital systems to help reduce the impact of climate change.

Furthermore, the report said that with about 90 per cent of its electricity coming from renewable sources like hydro-generation and geothermal wells, Kenya could provide solutions to other countries looking to lower their emissions. “If Kenya maintains a low-carbon growth path, it could seize opportunities created by the global decarbonisation trend and create green jobs. Achieving a carbon-free electricity energy system by 2030 will require investments of up to $2.7 billion. It will be cost-effective in the long run as the investments will be offset by lower fossil fuel costs,” the report added.

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