Land Resettlement, Climate Change and Private Sector Growth

1. LAND RESETTLEMENT AS A TOOL TO MITIGATE CLIMATE CHANGE AND GROW THE PRIVATE SECTOR IN KENYA
Green Climate Fund
Green Bonds by
IBRD and IDA
Government of
Kenya (GOK)
Land Resettlement
Fund
Kitty
Government, through its
agencies purchases land for
resettlement of persons
posing climatic threat in
Kenya.
Climate
Adaptation and
mitigation
Resettlement
Programs
Agri-business and
PPP models that
create industrial
zones in
Resettlement areas
Provide IFC loans &
MIGA guarantees
for PPP
Private Sector
investments in
Kenya
Sustainable socio-
economic
development of
citizens will lead to
more tax revenues
for Government and
trigger private
sector growth
Government of Kenya
is empowered to pay
back and borrow
more MDB loans

2. Currently, resettlement is not given prominence as a means to address climate change in developing
countries. Informal settlements especially in public land reserves in Kenya pose a big threat to the climate change
agenda in terms destruction of forests, burning of Charcoal, overfishing, farming in riparian reserves and also
social dynamics such as crime. Many informal settlers especially in the urban areas of Kenya eke a living from
these activities. Government efforts to protect the environment has seen the introduction of the land
resettlement fund model where government provides land in resettlement schemes and the beneficiaries pay a
small amount to the Land resettlement Fund and after completion of such interest free payments, formal land
entitlement certificate is awarded to the beneficiaries.
The model is partially working but the government needs to bring in the private sector through PPP and
also provide variables such as critical infrastructure, adequate waivers and guarantees. Government of Kenya has
also enacted an elaborate PPP law that protects any investors in PPP models. The MDBs should now come in and
support the government to offer guarantees to the PPP through MIGA and IFC loans for the private investors in
the resettlement zones marked as industrial zones. The MDBs (green bonds) and green climate fund can scale up
the resettlement programs by providing concessional loans to the GOK specifically for the climate adaptation and
mitigation resettlement programs. Sustainable resettlement programs will even lead to eventual growth of the
private sector, as income-resettled citizens will purchase more consumer goods, pay back interest free loans
advanced by GOK (for the resettlement land and other associated costs) and also generate a stable environment
for the private sector to flourish in a context of social order and cheap labour. I believe that well-coordinated
and managed resettlement programs can confer immense opportunities to the economy, private sector and
increase tax revenues for the government of Kenya through multiplier effects as per the illustration above.