The price of inaction is no longer abstract. A devastating new report by global insurers reveals that climate-related disasters cost the global economy a staggering $120 billion (Sh15.47 trillion) in 2025 alone. From the floods in Nairobi to the wildfires in Australia, the planet is sending an invoice that we can barely afford to pay.

The study, published by Munich Re, highlights a worrying trend: the "protection gap." In developing nations like Kenya, less than 5% of these losses were insured. This means that when a farmer in Kilifi loses their crop to drought, the loss is total and permanent, entrenching poverty for generations.

Africa Pays the Highest Price

"We are paying for a fire we did not start," said African Group of Negotiators chair Ephraim Shitima. While the Global North faces higher financial losses in absolute terms, the impact on GDP is far higher in the Global South. The Sh15 trillion figure exceeds the entire GDP of the East African Community combined.

• The Adaptation Gap: The report calls for an urgent operationalization of the "Loss and Damage Fund" agreed upon at COP29. Without these funds, vulnerable nations are forced to divert money from health and education to rebuild bridges and roads washed away by the next storm.
• Local Reality: In Kenya, the economic cost of the El Niño rains is still being tabulated, but estimates suggest it knocked 1.5% off the annual growth. The climate crisis is not just an environmental issue; it is the single biggest threat to our economic survival.