State to quantify economic value of natural resources
Business
By
Graham Kajilwa
| Jul 10, 2025
The government's statistician has unveiled a plan to collate data that would quantify the contribution of natural resources to the country’s gross domestic product (GDP).
The National Plan for Advancement of Environmental Economic Accounting narrows down to six areas of focus that are key to the country’s economy. These are water, forest, land, ecosystem, minerals and energy.
Alongside the document, the Kenya National Bureau of Statistics (KNBS) has also launched the Second Kenya Strategy for Development of Statistics (2025-2028).
The document, which builds on the 2019-2023 strategy, seeks to streamline the collection and dissemination of data across various sectors. It will also marry data collection and policy action, as well as collaboration between producers of statistics and users.
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Data quality, viability, timeliness and the role of technology in the collection and dissemination are also areas of focus.
Principal Secretary in the State Department for Economic Planning Boniface Makokha, said these efforts are towards facilitating evidence-based decision making. He said the documents launched will be instrumental in transforming and modernising the national statistical system.
The PS said the national plan will facilitate the measurement of what truly matters: forest, water bodiess, biodiversity and ecosystems; thus ensuring their protection while pursuing economic growth. “This marks a turning point in how natural wealth is understood and accounted for,” he said.
He noted that Kenya’s economy is closely tied to its natural capital, emphasising the need for the adoption of the system for environmental economic accounting (SEEA).
“This initiative underscores Kenya’s commitment to balancing economic growth with environmental resilience, cementing Kenya’s role as a continental pioneer in integrating economic and environmental statistics,” said the PS.
A recent report by the African Development Bank (AfDB) cited the country’s poor data on natural resources, particularly forest cover, as behind the unrealised potential of Sh130 billion in the carbon credit market.
“Only Sh26 billion ($200 million) generated to date,” the report says. “No valuation of carbon sequestration, outdated forest data, and lack of inclusion in national accounts,” the report adds, listing the country’s challenges with natural resource inventory.
KNBS Director General Macdonald Obudho said the National Plan for Advancement of Environmental Economic Accounting will address certain data gaps, such as how to account for what is consumed from the forest, land degradation, and energy.
“This is also another plan that is going to guide in climate change, which is a global concern,” he said.
UN Resident Representative Madelena Monoja said even for the United Nations in Kenya, it has always been difficult to set measurable targets and indicators on aspects related to natural resource management. “Whether it is water, energy or forest because of (the lack of) proper quantifiable data,” she said.
She said the lack of proper data also makes it difficult to design programmes and mobilise resources for the country since, without statistics, one can’t quantify the needs, and how to measure the progress, and results that would be achieved from such initiatives.
“Kenya’s natural capital is central to its economy, yet these vital assets have often been invisible,” she added. Ms Monoja said the launch of the document, while being a milestone to the UN’s work in the country, is also timely to the climate change debate.
“Climate change is already affecting livelihoods, ecosystems and their economies. The plan’s integration of environmental and economic data strengthens Kenya's capacity to respond by enabling smarter, more resilient decision making,” she said.