The Kenya agricultural carbon project isbreaking new ground in designing and implementing climatefinance projects in the agricultural sector. The project isregarded as an innovative example for climate-smartagriculture within and outside the World Bank. For the firsttime, while increasing productivity and enhancing resilienceto climate change, smallholder farmers in Africa willreceive payments for greenhouse gas mitigation based onsustainable agricultural land management. Quantification ofcarbon sequestration is monitored based on a newly developedcarbon accounting methodology. This smart lesson describesthe key factors to take into consideration when facilitatingthe adoption of climate-smart agricultural practices andaccess to carbon markets for smallholder farmers.