Key determinants of green construction finance uptake in Kenya

Abstract

The construction sector has a significant impact on the environment, yet the uptake of green construction in Kenya remains low, partly due to barriers in accessing green construction finance (GCF). This study evaluates the key determinants influencing GCF uptake in Kenya’s construction industry. Using quantitative research methods, a survey of 69 registered developer firms was conducted, evaluating eight key determinants, namely awareness; availability and accessibility; institutional and regulatory factors; financial and cost-related aspects; environmental considerations; technological and technical factors; risk, and sociocultural influences. Findings revealed moderate awareness of technical aspects but poor understanding of financial mechanisms, incentives, and application processes. While GCF is perceived as available, bureaucratic and regulatory barriers limit accessibility. Long-term financial gains and environmental benefits are recognised, yet high upfront costs, regulatory uncertainties, skill gaps, and low public awareness constrain adoption. Technological readiness and certification bodies are crucial for GCF uptake, but sociocultural attitudes, trust deficits, and inadequate policy coherence remain significant barriers to widespread GCF adoption, highlighting the need for targeted interventions. The study contributes to research and policy, by providing recommendations to guide strategies (e.g., combining capacity-building programmes, streamlined institutional and regulatory frameworks, financial incentives, technological support, risk mitigation, and social advocacy) that can improve green finance accessibility and promote sustainable construction practices in Kenya.