In October 2024, Interpeace’s peacebuilding team in Kenya, in partnership with the Finance for Peace initiative, launched a pre-feasibility study aimed at providing the first step analysis required to map a potential pipeline of investment approaches that can positively impact peace and conflict dynamics in the north of Kenya and contribute to sustainable development. The study focuses on the counties of Elgeyo Marakwet, Mandera, and Marsabit, where there is a legacy of conflict dynamics that intersect with development needs. The report includes: 1) A summary of key conflict dynamics in northern Kenya and their impact on development, which need to be considered by prospective Peace Finance approaches; 2) An analysis of how conflict dynamics have impacted investments in northern Kenya; and 3) A mapping of an early phase set of options for peace-positive investment opportunities in northern Kenya. Recommendations from the report include:

• Alliances should be formed to take further steps towards designing a peace-responsive investment portfolio
• International partners and the government need to support the integration of peacebuilding into investment to help unlock capital markets for greater investment in infrastructure financing
• Investors should consider the application of the Peace Finance Impact Framework and investment guidance to mainstream peace into investment in northern Kenya
• All actors, including peacebuilding, civil society, investors and government, need to collect better data for informed decision-making
• Investors should continue to seek the alignment of their investment approaches with county and national-level development priorities

The study finds significant opportunities for peace-positive investment across several sectors in all three counties. For example, livestock production and agriculture in Mandera and Marsabit present notable peace-positive investment potential. Modernised farming and meat exports are highly bankable and can be entry points to reduce resource-based conflicts over livestock and cattle while strengthening intercommunal relations. Integrating peacebuilding into agriculture approaches is especially critical, as arable land supports high-value crops and beekeeping, fostering social cohesion and reducing reliance on conflict-prone livestock trade. Elgeyo-Marakwet County presents significant opportunities in agricultural value chains for crops such as sorghum, pyrethrum, potatoes, mangoes, green grams, cotton, coffee, and tea. Investments in agrifood processing can add value to agricultural products, reduce post-harvest losses, and boost farmers’ incomes, helping the economy move up the value chain. The data from this study is primarily based on interviews and focus group discussions with key stakeholders in the three locations. These included private-sector representatives, community leaders, government officials, NGO representatives, senior officials from the Frontier Counties Development Council (FCDC) and the North Rift Economic Bloc, local professionals, political leaders, think tank experts, and members of professional associations from the three counties. This report is designed to be a first step in a more systematic approach by Interpeace to working with partners to stimulate a more intentional, peace-positive, and risk-attuned approach to investment in Kenya. During the report’s launch in Nairobi, Kenya’s Government pledged to promote peace-positive investment. Principal Secretary of the State Department for Devolution Ms Terry Mbaika stated: