Invest in peace finance for prosperity in northern Kenya

Kenya has a history of unequal investment and resource distribution, closely linked to cycles of violent conflict. This is particularly evident in the northern counties, which have faced protracted conflicts, underdevelopment, and political marginalisation.

Historical grievances, land and resource disputes, and ethnic politics are at the core of these conflicts, exacerbated by socio-economic disparities and competition for resources.

While the region holds significant economic potential, development finance solutions and broader private investment strategies must consider the complex dynamics at play to ensure sustainability and success. Investments made in a conflict-sensitive and peace-positive manner can address immediate and ongoing needs of the population while reducing the underlying causes of violent conflict.

When investments are aligned with peace outcomes, they can effectively address the drivers of conflict.

This approach, known as “Peace Finance,” integrates intentional peace efforts into investment design to achieve peace-positive impacts and foster social cohesion while lowering investment risks and improving financial returns.

Peace is fundamental for the stability needed to catalyse greater private sector and development finance investment in conflict-prone areas. There is a significant opportunity to build on increased stability and peace to realise a true peace dividend, particularly in Kenya’s northern counties.

The nexus between peace, development, and investment is critical. Without peace, development cannot thrive; without development, peace remains elusive. Through peace-positive investments, it is possible to transform northern Kenya into a region where investments promote stability and peace, creating a cycle that leads to a prosperous future.

Integrating peacebuilding into agricultural and economic activities is especially critical, with arable land supporting high-value crops and beekeeping, fostering social cohesion while reducing reliance on conflict-prone livestock trade.

Peace-responsive approaches must be embedded in these investments, especially where they are land-intensive or involve resources that have historically fueled conflict.

Recent research by Interpeace has identified entry points for peace-positive investment in northern Kenya’s frontier markets, revealing significant opportunities that can unlock the region’s economic potential and narrow the development gap between these historically marginalised counties and other regions of Kenya.

A feasibility study on peace-positive investment in the counties of Elgeyo Marakwet, Mandera, and Marsabit has shown that these areas are endowed with abundant natural and artificial resource potential, including agriculture, livestock, fisheries, trade, infrastructure, storage and transport, renewable energy, services, manufacturing, mining, and tourism.

The vast open land is optimal for large-scale irrigation and agribusiness opportunities. Additionally, these counties are strategically located along the borders of Somalia and Ethiopia, presenting expansive cross-border market opportunities.

In Mandera and Marsabit, livestock production and agriculture present notable peace-positive investment potential. In Marsabit, significant opportunities exist for investing in large infrastructure projects with a peace-positive approach, particularly given the existing and planned investments in water management and energy.

The fisheries sector, especially around Lake Turkana, offers considerable peace-positive investment potential, with necessary investments in cold chain facilities, fish landing sites, and market outlets to reduce post-harvest losses and enhance socio-economic conditions.

Investors can unlock this vast array of untapped potential through peace finance. This approach presents a win-win situation for local communities, investors, and the northern counties. Interpeace is pleased to witness the positive response to Peace Finance in Kenya and looks forward to collaborating with partners to make it a reality, paving the way for a peaceful and prosperous future for all in northern Kenya and beyond.

Hassan Ismail is the Interpeace Country Representative in Kenya.