History, Frameworks and Gaps in ESG in Kenya: Coastal Edition

This is a 2-part look into the workings of ESG within County 002 of the Jumuiya ya Kaunti za Pwani. We will be looking at the past, the present and the future of ESG in the six counties along the Coast. Part 1 is linked here: https://mmsadvocates.co.ke/history-frameworks-and-gaps-in-esg-in-kenya-coastal-edition/

PART 2: Challenges & The Future of ESG in Kwale

Current Challenges:
In Kwale County, Environmental, Social, and Governance (ESG) gaps are primarily driven by the intersection of large-scale extraction (mining), environmental vulnerability, and historical land tenure issues. Despite progress, the county still faces ESG challenges; including gender inequality, low literacy rates among women, and the need for better integration of social and environmental sustainability in local cooperatives; as highlighted in studies on agricultural value chains. Here’s a breakdown of the current gaps facing my new work station and home:

Environmental Gaps

• Climate Hazard Vulnerability: The county faces severe threats from drought, floods, and rising sea levels that disrupt food security and ecosystem structures.

• Resource Degradation: Significant threats exist to terrestrial forests, mangroves, and coral reefs due to human activities and climate change.

• Water & Sanitation Inefficiency: There is a high “unaccounted-for water” rate (estimated at 41%) due to leakages and illegal connections. Additionally, over 60% of the coastal region lacks safely managed sanitation.

• Waste Management: Challenges persist in solid waste collection and the potential dumping of toxic waste from maritime activities. 

Social Gaps

• Land Tenure Insecurity: Uncertain land ownership is a major source of conflict and a barrier to social-economic progress. Many residents lack formal registration for their land.

• Community Exclusion: In the extractive sector (mining), communities often feel excluded from corporate governance, leading to mistrust and “environmental and social injustices”.

• Gender & Inclusion Gaps: While policies exist, there are still significant gaps in realizing gender equality and empowering vulnerable groups in decision-making and resource control.

• Economic Performance: Kwale scores poorly on Economic Performance (0.47) and Water, Sanitation, and Hygiene (0.47) according to the Public Affairs Index. 

Governance Gaps

• Public Participation Deficits: Public participation is often viewed as a “ticking-the-box” exercise rather than a meaningful dialogue, particularly regarding land use and mining.

• Institutional Capacity: There is a notable capacity gap in the County Budget and Economic Forum (CBEF), where members may not fully understand their mandate or effectively represent citizen interests.

• Policy Implementation: There is “weak coordination and implementation” of programs for Micro and Small Enterprises (MSEs).

• Fiscal Transparency: Although the county scores relatively high in fiscal management, challenges remain in revenue automation and the timely release of mining royalties. 

Summary of ESG Performance (Public Affairs Index)

Based on the Kenya Institute for Public Policy Research and Analysis (KIPPRA) PublicAffairs Index (PAI) for 2021-2022, Kwale County is evaluated across nine pillars: Fiscal Management, Economic Performance, Human Capital Development, Infrastructure, Environmental Management, Transparency/Accountability, Crime and Justice, WASH, and Social Welfare. 

Here is an overview of ESG performance and related indicators for Kwale County:

1. Environmental Management (E)

• Climate Change Adaptation: Kwale County has prioritized climate change interventions, including the Kwale County Climate Change Action Plan 2023-2027, integrated into the County Integrated Development Plan (CIDP).

• Environmental Challenges: The region faces challenges with water pollution (840 reported incidences), air pollution (564 cases), and illegal effluent discharge over a 5-year period.

• Natural Resources: The County Spatial Plan (2022-2032) focuses on protecting the environment, particularly regarding land use.

• Impact Assessments: Projects like the Mwaepe fish landing site undergo mandatory Environmental and Social Impact Assessment (ESIA).

2. Social Performance (S)

• Public Service Delivery: The county aims to be a leader in citizen-driven socio-economic programs.

• Water and Sanitation: A lack of reliable water and sanitation, particularly in Kinango Constituency, has contributed to high poverty levels, prompting targeted NGCDF projects.

• Social Inclusion: A Kwale County Gender and Social Inclusion Policy (2024) is being established, aligning with SDGs and the Constitution to enhance social protection, gender, and youth inclusion.

• Agriculture and Livelihoods: The average agriculture GVA growth (2013-2022) was 12.73%, slightly above the national average. 

3. Governance and Accountability (G)

• Public Participation: The county scored 19 out of 100 points on the level of information provided on public participation in its documents, according to an International Budget Partnership study.

• Accountability Measures: The County Government emphasizes transparency, integrity, and inclusivity in its core values, aiming for improved service delivery.

• Financial Management: The 2026 Fiscal Strategy Paper indicates a 40.4% budget absorption rate by mid-FY 2025/2026.

• Efficiency: The Public Affairs Index aims to identify gaps and prioritize policy actions to strengthen the devolved system in Kwale. 

Key Takeaway: Kwale County is actively working on strengthening its governance (G) and environmental policies (E) to boost social (S) development, as highlighted in their Integrated Development Plan (2023-2027).

Future Outlook of Kwale County in terms of ESG:

Let not the previous sub heading above, make you spell gloom nor doom for Kwale. The future of Environmental, Social, and Governance (ESG) here is focused on transforming the region into a climate-resilient, green economy hub, driven by the Kwale County Climate Change Action Plan (CCCAP) 2023-2027 and a strong emphasis on community-led sustainability. The county is moving towards integrating ESG principles into sectoral planning to manage risks from climate change, such as droughts, floods, and sea-level rise, while fostering sustainable blue economy initiatives. 

Key Aspects of the Future of ESG in Kwale:

Environmental (E) – Climate Resilience & Green Economy:

• Mangrove Restoration: Community-led projects, such as Mikoko Pamoja, are setting a precedent for carbon sequestration, which will likely expand.

• Agroforestry & Conservation: The county is heavily promoting agroforestry, with over 20,000 farmers involved in initiatives like Farmer-Managed Natural Regeneration (FMNR).

• Blue Economy Development: The focus is on sustainable fishing and marine protection, particularly around the Kisite-Mpungutini Marine Park and Reserve, to protect coastal ecosystems.

• Tree Planting Campaigns: Massive tree planting drives, such as the 10,000 seedling distribution in Matuga Sub-County (2025), are being used to combat climate change.

Social (S) – Community Empowerment & Livelihoods:

• Youth & Digital Inclusion: There is a push to integrate young people into the green and digital economy, encouraging them to create green enterprises.

• Local Action & Capacity Building: The implementation of the Financing Locally-Led Climate Action (FLLoCA) project is empowering communities to lead on climate adaptation.

• Health and Social Infrastructure: Development plans include improving access to water and healthcare in rural areas, often through public-private partnerships (PPPs) and Corporate Social Responsibility (CSR) activities.

Governance (G) – Transparent & Sustainable Planning:

• Policy Implementation: The CCCAP 2023-2027 mandates that all county departments integrate climate change mitigation into their five-year Integrated Development Plans (CIDPs).

• Sustainable Mining Transition: As the county moves beyond reliance on mining (like the Kwale mine), there is a focus on sustainable, long-term land-use planning and ensuring community benefit-sharing.

• Resource Mobilization: The county aims to strengthen its financial position through the legalization of mining royalties and better enforcement of revenue collection. 

The continued success of ESG in the region depends on strengthening partnerships with non-state actors, such as NGOs and the private sector, and ensuring that sustainability efforts are not just a compliance exercise but a core component of the county’s growth strategy.

As MMS Advocates moves and works from the junction of the Dongo Kundu bypass in the north – Shikadabu – to the furthest fishing location in the south – Vanga – we do hope that our partnerships, collaborations and continued interactions with the communities and stakeholders here, will bear fruit and propel the ESG field in County 002 even further and higher.