The Community Environment Facility Phase II (CEF II) is one of the components under the Community Development Programme Phase 4 (CDP-4), being impelemented by the Community Development Trust Fund (CDTF).

The overall objective of the CEF II is to support community projects aimed at poverty reduction through improved livelihood systems and the conservation of community natural resources and initiatives for enhanced environmental management and governance.

Kenya's natural resources fuel her economy and if wisely used will continue to sustain its growth on sustainable pathways. Environmentally critical areas also provide important goods and services to adjacent communities and beneficiaries further afield. Linkages between these environmentally important areas and downstream communities form a network of interactions. These interactions continue to benefit or harm both adjacent and downstream communities depending on how they are managed. Due to human use pressures, these interactions have been disrupted negatively affecting the quality and the productivity of such environmentally important areas in terms of environmental goods and services.

The CEF II is targeted at enhancing productivity of environmentally critical areas so as to achieve poverty reduction and environmental sustainability. Kenya's diverse ecosystems are targeted as what happens in one part of an ecosystem, has implications for that ecosystem as well as impacts on adjacent ecosystems.

Under the CEF II sub-component, the Community Development Trust Fund (CDTF) will assist communities to design suitable projects, provide training and guidance in project management and governance, and engage with governmental, non-state-actors and parastatals in the implementation of environmental initiatives in environmentally important areas.