Nature's Bottom Line: The Economic and Financial Costs of Ecosystem Degradation in Kenya
2025
World Bank
Kenya’s economy is highly dependent on its diverse ecosystems which are under threat of unprecedented degradation. Key sectors like agriculture, tourism, and energy rely heavily on ecosystem services, but these services are rapidly degrading as a result of climate change, deforestation, pollution, unsustainable land use and pressures from population growth. Data from ENCORE suggests that about 44 percent of Kenya’s GDP comes from sectors highly dependent on ecosystem services like water provision, flood protection, and climate regulation (Figure ES.1). Agriculture, real estate and construction, which are key engines of Kenya’s economy, are particularly reliant on these services. The exposure to nature physical risks varies significantly across different geographies and sectors, with 18 percent of Kenya’s GDP originating from counties at high risk of ecosystem degradation of enabling ecosystem services.
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