How Kenyan Farmers Can Earn from Carbon Credits

As Kenya’s agricultural sector faces challenges like unpredictable weather and soil degradation, carbon credits offer a unique opportunity for farmers to earn extra income while fighting climate change.

By adopting sustainable practices like soil carbon capture and agroforestry, smallholder farmers can tap into global carbon markets, boosting both their livelihoods and environmental impact.

This guide explores how Kenyan farmers can participate in carbon credit programs, with a focus on the pioneering Kenya Agricultural Carbon Project (KACP) and a clear, actionable roadmap to get started.

Why Carbon Credits Matter for Kenyan Farmers

Agriculture employs over 40% of Kenya’s workforce and contributes significantly to the nation’s GDP. However, climate change threatens productivity with irregular rainfall and degraded soils.

Carbon credit programs incentivise sustainable farming practices that sequester carbon in soil and trees, offering financial rewards while improving soil health and crop yields.

Projects like the KACP, implemented by Vi Agroforestry, have engaged over 60,000 farmers across 45,000 hectares, demonstrating how carbon markets can transform rural livelihoods.

By participating, farmers not only earn carbon revenue but also enhance food security and climate resilience.

For example, KACP’s Sustainable Agricultural Land Management (SALM) practices have increased maize yields by up to 20%, proving that environmental and economic benefits go hand in hand.

What Are Carbon Credits, and Why Should Kenyans Care?

This evergreen opportunity remains relevant as Kenya aims to scale its carbon market under policies like the Climate Change (Carbon Markets) Regulations 2024.

How Carbon Credits Work in Agriculture

Carbon credits represent one metric tonne of carbon dioxide reduced or removed from the atmosphere. Farmers earn credits by adopting practices that store carbon, such as planting trees (agroforestry) or improving soil management (e.g., mulching, reduced tillage).

These credits are verified under standards like the Verified Carbon Standard (VCS) and sold to companies offsetting their emissions.

In Kenya, projects like KACP and Farm Africa’s Acorn initiative enable smallholders to access these markets, with farmers receiving up to 80% of credit sale revenue in some cases.

Step-by-Step Guide to Joining Carbon Credit Programs

Here’s a practical roadmap for Kenyan farmers to start earning from carbon credits:

Step 1: Understand Eligible Practices

Focus on Sustainable Agricultural Land Management (SALM) practices that qualify for carbon credits:

Agroforestry: Planting trees like eucalyptus or indigenous species alongside crops to sequester carbon and provide fodder or fuel.
Soil Carbon Sequestration: Using cover crops, mulching, composting, or reduced tillage to increase soil organic carbon, improving fertility and water retention.
Land Rehabilitation: Terracing or water harvesting to prevent soil erosion and enhance carbon storage.

Example: KACP farmers in Kisumu and Bungoma adopted agroforestry and mulching, leading to higher maize yields and carbon credit earnings.

Step 2: Assess Your Farm’s Eligibility

Evaluate your farm’s potential for carbon credit programs:

Farm Size: Most programs, like KACP, target smallholder farms (less than 2.5 hectares).
Current Practices: Farms using monocropping or burning crop residues are ideal candidates for transitioning to SALM practices.
Location: Projects often operate in specific regions, like Western Kenya for KACP or Embu for Acorn. Check if your area is covered.

Checklist for Eligibility:

Do you practice or are you willing to adopt agroforestry or soil management techniques?
Is your farm in a project-covered region (e.g., Nyanza, Western, or Embu counties)?
Can you commit to long-term sustainable practices (5–20 years)?
Are you part of a farmer group or willing to join one for training and monitoring?

Step 3: Connect with Implementing Organisations

Partner with NGOs or programs facilitating carbon credit projects:

Vi Agroforestry: Implements KACP, offering training on SALM practices and carbon monitoring. Contact their offices in Kisumu or Kitale.
Farm Africa: Runs the Acorn initiative in Embu and Tharaka-Nithi, focusing on agroforestry. Reach out via their website or Embu County offices.
Kenya Climate Innovation Centre (KCIC): Provides technical support and links farmers to climate finance opportunities. Contact KCIC for guidance on local projects.
Northern Rangelands Trust (NRT): Supports pastoralist communities in northern Kenya with grassland carbon projects.

Action Tip: Attend local barazas (community meetings) or agricultural extension workshops to learn about active projects in your area.

Step 4: Receive Training and Implement Practices

Enrol in training programs offered by NGOs:

Learn SALM techniques through field advisors (e.g., Vi Agroforestry’s 28 field advisors cover 70 km² each).
Adopt practices like composting or planting fodder trees to reduce reliance on crop residues.
Participate in community-based monitoring to track carbon sequestration and crop yields.

Example: KACP farmers received training on mulching and terracing, resulting in 24,788 metric tonnes of CO₂ captured by 2016, equivalent to emissions from 5,164 vehicles.

Step 5: Monitor and Verify Carbon Sequestration

Work with project partners to measure carbon storage:

Use tools like KACP’s participatory monitoring system to track soil and biomass carbon.
External auditors verify emissions reductions periodically under VCS standards.
Ensure consistent practice adoption to maintain eligibility for credits.

Step 6: Earn and Receive Payments

Once verified, carbon credits are sold on international markets:

Payments are typically post-paid (e.g., KACP paid farmers in 2014 for 2010–2014).
Revenue varies: Acorn credits range from KSh 3,000 to 4,650 per unit, with farmers receiving up to 80% of sales.
Payments may include cash or in-kind benefits like seedlings or beehives.

Note: Carbon revenues are a “bonus” to improved yields and soil health, not a primary income source. Vi Agroforestry emphasises clear communication to avoid false expectations.

Success Stories: Kenyan Farmers Thriving with Carbon Credits

Ngurumo Community, Kisumu: Farmers adopting SALM practices through KACP saw maize yields increase by 20%, alongside carbon payments, improving food security.
Embu Farmers, Acorn Project: Over 4,000 smallholders planted agroforestry trees, earning income from carbon credits while boosting soil fertility.
Bungoma Farmer Groups: By integrating fodder trees, farmers reduced residue burning, enhancing soil health and earning carbon revenue.

Challenges and How to Overcome Them

High Coordination Needs: Joining farmer groups simplifies training and monitoring. Engage with local cooperatives or barazas.
Long-Term Commitment: Carbon projects require sustained practices. Choose methods like agroforestry that also provide food or fuel.
Market Risks: Carbon prices fluctuate. Focus on yield improvements as the primary benefit, with credits as a bonus.

Can Carbon Credits Become Kenya’s Next Cash Crop?

How to Get Started Today

Contact Local NGOs: Reach out to Vi Agroforestry, Farm Africa, or KCIC via their websites or local offices.
Join a Farmer Group: Collaborate with neighbours to access training and resources.
Attend Workshops: Look for SALM training sessions in your county.

Why This Matters for Kenya’s Future

Carbon credit programs align with Kenya’s climate goals, including the 15 billion tree-planting initiative by 2032 and the National Climate Change Action Plan.

By participating, farmers contribute to global emissions reduction while securing economic and environmental benefits.

As Kenya aims to produce 300 million carbon credits annually by 2030 through the Africa Carbon Markets Initiative, smallholders are at the forefront of this green shift.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.