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Home Climate

Carbon Credit Caution: Lessons from Kenya’s Offset Controversy

Amy Botha by Amy Botha
August 6, 2025
in Africa, Climate, Development, Environment, ESG, FA, Sustainability
Reading Time: 2 mins read
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The allure of carbon credits has drawn growing interest from global investors and corporations seeking to offset emissions through nature-based solutions—particularly in Africa, where abundant land, rich biodiversity, and untapped potential position the continent as a prime frontier for climate finance.

However, a growing controversy in Kenya is sounding the alarm on the governance gaps and social risks that can undermine even the most well-intentioned climate projects.

At the centre of the debate is a major carbon offset scheme in Northern Kenya involving the Northern Rangelands Trust (NRT). Backed by corporate giants like Meta, Netflix, and British Airways, the project claims to generate millions of carbon credits through improved land use and community conservation. However, a recent ruling by Kenya’s Environment and Land Court found that two of the key conservancies within the scheme were established without proper legal or community consent. This revelation casts doubt on the project’s legitimacy and raises broader questions about the voluntary carbon market’s safeguards.

Also read: Carbon Pricing Gains Momentum: 2025 Report Highlights Key Global Trends

Certification body Verra—the world’s leading verifier of carbon offset programmes—is now conducting a review, while local communities and civil society groups demand transparency, benefit-sharing, and legal accountability. The case exposes a critical vulnerability: in the rush to scale climate finance, community rights are too often overlooked.

For Africa, where carbon markets could unlock billions in sustainable financing, this case is a cautionary tale. Robust governance, inclusive consultation, and legal clarity are not optional—they are prerequisites. Projects must be grounded in free, prior, and informed consent (FPIC) and ensure that benefits meaningfully reach local populations, not just offset global emissions.

As global interest in African carbon credits accelerates, the Kenya example may become a watershed moment. It highlights the urgent need for regional policy frameworks, independent oversight, and ethical market developmentthat respects both the environment and the people who protect it.

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Amy Botha

Amy Botha

Originally from South Africa’s Eastern Cape, I live and love Scotland, Imperial College London graduated with a degree in Renewable Energy Engineering. Passionate about how Africa will lead in sustainable energy and dreaming about ways we can create a greener future for the next generations.

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