Green financing in promoting sustainable development in Kenya.

Abstract

Sustainable development is increasing in popularity globally as countries seek to meet present needs without compromising future generations. Green financing has been touted as a key strategy to direct capital towards sustainable projects. This study analysed the role of green financing in promoting sustainable development in Kenya, particularly in Nairobi County. It focused on sustainable agriculture, green innovation, climate change mitigation, and green infrastructure. The research applied Stewardship Theory, Institutional Theory, Ecological Modernization Theory, and Behaviour Theory to understand stakeholder behaviour and institutional dynamics. Data collection involved ten institutions aligned with green finance goals. Findings indicated weak positive correlations between sustainable agriculture and sustainable development, while green innovation, climate change mitigation, and green infrastructure had weak negative correlations. A multiple regression analysis revealed no significant predictive power, with all indicators failing to demonstrate a positive effect on sustainable development. The study proposed recommendations for educational programs in sustainable agriculture, a policy framework for green innovation, integrated climate change policies, and tailored green infrastructure solutions.