Article 6 and Kenya: Trading Carbon Credits Internationally

When Kenya and Switzerland signed their bilateral agreement under Article 6.2 of the Paris Agreement, it marked a watershed moment for international carbon markets. This agreement allows Switzerland to count carbon reductions achieved in Kenya toward its own nationally determined contributions (NDCs), creating a direct financial incentive for Swiss buyers to invest in Kenyan climate projects.

Since then, Kenya has expanded its Article 6 ambitions. The country has entered negotiations with several European nations and Japan, recognizing that internationally linked carbon markets can unlock substantially higher prices for Kenyan credits — often 2-3 times the voluntary market rate.

For project developers operating in Kenya, Article 6 compliance requires additional authorization from the national government (a Letter of Authorization or LoA), additionality documentation, and alignment with Kenya's own NDC targets. The Ministry of Environment and Climate Change has established a dedicated Article 6 unit to process these applications.

The transition to Article 6-authorized credits is not without complexity, but the premium pricing justifies the additional compliance burden for most large-scale projects. Kenya is positioning itself as the go-to destination for Article 6 credits from the African continent.