Kenya generates substantial volumes of wastewater from domestic, industrial and agricultural sources — amounting to 800 million litres per day from domestic use alone.2 The country faces significant challenges in managing this wastewater effectively, which increases pressure on limited local freshwater resources. For instance, only 30% of the 400 million litres of wastewater generated daily in Nairobi undergoes treatment, and only 5% of wastewater from offsite sanitation management (OSM) is effectively treated because of failures in the sewage system, a lack of treatment infrastructure and facilities operating below capacity. These problems are exacerbated as transport trucks resort to illegal dumping in nature due to high discharge costs. As wastewater contains contaminants such as chemicals, oils and human waste, this results in heavy pollution of water bodies, endangering aquatic ecosystems and public health. This study employed a mixed-methods approach to conduct a deep dive into the wastewater management sub-sector in Kenya. Our study identified 27 active businesses in this field, including a few growth-stage businesses which have achieved scale through innovation, acquisition of effective technologies, and establishing strategic partnerships, such as the Fresh Life partnership with Regen Organics to convert waste collected by Fresh Life.

Kenya generates 880,000 tons of plastic waste per year, comprising various subcategories such as polyethylene (PE), polypropylene (PP), polystyrene (PS), polyvinyl chloride (PVC), and polyethylene terephthalate (PET), with PET, PP and polyester being the most prevalent. The widespread use of plastic, particularly in urban areas, combined with inefficient waste management systems, leads to the pollution of water resources and severe negative impacts on marine life. Furthermore, plastic waste disposed in nature or in landfills emits greenhouse gases during its decomposition. Out of the 122 businesses identified through this study, 17 businesses operating in the plastic waste management sub-sector in Kenya have been identified, covering applications ranging from plastic waste reduction, recycling into new plastic products and waste conversion into energy. This study employed a mixed-methods approach to conduct a deep dive into the plastic waste management sub-sector in Kenya. Out of the 122 businesses identified through this study, 17 businesses operating in the plastic waste management sub-sector in Kenya have been identified, covering applications ranging from plastic waste reduction, recycling into new plastic products and waste conversion into energy.

Organic waste, which amounts to 5.72 million tons every year in Kenya, spans diverse sub-categories including food waste, yard waste, animal waste, agricultural waste, wood waste, organic sludge, biodegradable waste and human waste (faecal sludge). Rural households typically compost around 75% of their organic waste, but only 25% is composted in urban areas. Although organic waste degrades quickly and does not stay in the environment, it emits methane emissions during degradation or incineration. The high prevalence of open defecation due to inadequate sanitation systems further contributes to these challenges, as only 30% of the population has access to safely managed sanitation services.Effective organic waste management can reduce greenhouse gas (GHG) emissions, deforestation and soil degradation by providing sustainable alternatives to fuel, charcoal, wood and chemical fertilizers. For instance, transforming organic waste into biogas saves about 370–400 kg of carbon dioxide equivalent (CO2e) per ton, while turning it into fertilizers saves 350 kg CO2e per ton.Given the large volumes of recyclable material and its numerous applications, organic waste management is one of the most developed waste management sub-sectors in Kenya. Out of 122 waste management and circularity businesses identified through this study, 30 deal with organic waste, most of which were established over the past decade. This study employed a mixed-methods approach to conduct a deep dive into the organic waste management sub-sector in Kenya. 

Every day, Kenya produces over 24,000 tons of waste, amounting to 8.8 million tons annually. Most of this waste is currently mismanaged, with more than 75% of waste in Kenya being incinerated or disposed at dumpsites. Moreover, Kenya is home to two of the world's 50 largest landfills – Dandora in Nairobi and Kibarani in Mombasa – highlighting its significant waste management challenges. Mismanaged waste in Kenya poses several environmental and health risks, which local actors are yet to comprehensively address. The proximity of landfills to residential areas in Kenya negatively impacts the quality of life of nearby communities and poses severe health risks by contaminating local land and water resources. In addition, waste incineration releases toxic pollutants into the air, water and soil and produces hazardous ash that can contaminate the environment and pose health risks to nearby communities. This study identified 16 small and growing businesses (SGBs) providing integrated waste management services. Employing a mixed-methods approach to conduct a deep dive into the integrated waste management sub-sector in Kenya.

Small and Medium-sized Enterprises (SMEs) are at the heart of our economies and societies and play a crucial role in achieving global climate goals. They represent over 90% of businesses and 50% of greenhouse gas emissions globally.

Our research shows a growing paradox: while more SMEs recognize the importance of climate action, the barriers to taking effective action are also increasing. This widening gap demands urgent attention.

The challenge: the need to take climate action is intensifying, with more SMEs reporting that they have been directly impacted by climate change. 70% report experiencing direct effects on their business in the past year. These impacts include supply chain disruptions (39%), damage to assets or property (25%), and loss of productivity (24%).

East Africa is emerging as a vibrant hub for climate innovation, with a growing number of innovators and stakeholders developing solutions to address the region’s pressing climate challenges. The region's unique combination of urgent climate needs, a burgeoning tech ecosystem, and an increasing focus on sustainability has attracted significant attention from investors looking to support the advancement of climate action.

Within the East Africa climate ecosystem, stakeholder networks and relationships are crucial for ensuring the successful implementation of climate action policy and innovative solutions. Effective collaboration across the diverse stakeholders shaping the East Africa climate ecosystem, is key to fostering a more integrated and impactful approach for tackling climate challenges. Several factors influence how these stakeholders interact and collaborate within the climate ecosystem. These include the availability of funding, policy frameworks, technological infrastructure, and the strength of local entrepreneurial support systems.

This study examines the dynamics of climate innovation in East Africa, with a focus on the interactions, relationships and networks among key climate stakeholders. Qualitative and quantitative data collection was used to identify the enablers, barriers, and support needs critical to fostering a mature and integrated climate innovation ecosystem in the region. The insights provided in this report are aimed at informing stakeholders on the varying factors shaping interactions among key players in the ecosystem. Greater awareness of these dynamics can help reduce fragmentation in adaptation and mitigation efforts, while also enhancing the scalability of climate solutions to drive increased impact and inclusivity in East Africa’s climate ecosystem.