In the heart of Kenya’s bustling construction industry, a pressing question looms: why isn’t green construction finance (GCF) taking off despite the sector’s significant environmental impact? Dorcas Musingi, a researcher from the Technical University of Mombasa, has delved into this very issue, uncovering key determinants that could reshape the industry’s future.
Musingi’s study, recently published in ‘Acta Structilia’ (which translates to ‘Structural Acts’), surveyed 69 registered developer firms, evaluating eight critical factors influencing GCF uptake. The findings paint a nuanced picture of the challenges and opportunities ahead. “While there’s moderate awareness of technical aspects, the understanding of financial mechanisms, incentives, and application processes is alarmingly low,” Musingi notes. This knowledge gap is just one piece of the puzzle.
The study reveals that although GCF is perceived as available, bureaucratic and regulatory barriers create significant hurdles. “Long-term financial gains and environmental benefits are recognized, but high upfront costs, regulatory uncertainties, skill gaps, and low public awareness are holding us back,” Musingi explains. Technological readiness and certification bodies are crucial for GCF uptake, but sociocultural attitudes, trust deficits, and inadequate policy coherence remain substantial barriers.
So, what does this mean for the future of Kenya’s construction industry and the broader energy sector? The findings suggest that targeted interventions could make a world of difference. Musingi advocates for a multi-pronged approach, combining capacity-building programs, streamlined institutional and regulatory frameworks, financial incentives, technological support, risk mitigation, and social advocacy.
For the energy sector, this research highlights the commercial potential of integrating green finance into construction projects. By addressing these barriers, stakeholders can unlock new opportunities for sustainable development, energy efficiency, and cost savings. As Musingi’s study underscores, the path to a greener future is complex, but with the right strategies, it’s within reach.
In the words of Musingi, “This study is not just about identifying barriers; it’s about paving the way for a more sustainable and prosperous construction industry in Kenya.” And with these insights, the industry is one step closer to turning that vision into reality.