This archive report was first published on 16 July 2021.
Kenya is among nations at risk of being struck off the list of suppliers to multinational corporations due to their decarbonisation agenda.
According to a report by Standard Chartered, six out of 10 multinational companies plan to remove suppliers who do not fit into their agenda of reducing carbon emissions within three years.
By 2025, the number of companies with this policy is expected to rise to four out of five, or almost eight out of 10 (78 per cent).
This would see Kenyan suppliers lose up to $3.9 billion (Sh421.94 billion).
Standard Chartered Bank Kenya and East Africa chief executive Kariuki Ngari emphasized the importance of decarbonisation for the planet's survival.
“Emerging markets are most at risk from climate change and are among the least prepared and represent the fastest growing sources of new carbon emissions. Kenya for example aims to achieve a net-zero carbon neutral economy by 2050,” he said.
The report notes that companies expect to exclude around a third of their current suppliers as they transition away from carbon.
Kenya is listed as one of the leading suppliers to these companies, alongside China, South Korea, UAE, and Nigeria.
