Cost-benefit analysis of sustainable land and water management practices in selected highland water catchments of Kenya

Abstract

Sustainable land management (SLM) strives to maintain and improve the agricultural production capacity of land. To achieve the goals of SLM, communities use various types of agronomic, vegetative, and structural practices. Despite the benefits of SLM practices, some farmers are reluctant to adopt them. An economic cost-benefit analysis of SLM practices is an important approach to demonstrate the benefits of appropriate SLM practices. This study was conducted to determine the effect of adopting of SLM practices, and also the costs and benefits associated with adopting SLM practices in Kinale-Kikuyu, Cherangani, and Wundanyi water catchments in Kenya. A multistage, probability proportional to size sampling method was used to select 388 households for a cross-sectional survey in the year 2015. The study used the World Overview of Conservation Agriculture Technologies survey tools in a mixed-methods research technique. Profitability analysis, return on investment, and sensitivity analyses were conducted. Terraces, infiltration ditches, and trash lines were popular practices adopted by farmers. The cost of establishing terraces on a hectare of land was US$ 445. The most expensive vegetative SLM practice, woodlot, costed US$ 534 per hectare to establish. Average yields increased by 49.8% in Kinale-Kikuyu, 60.6% in Cherangani, and 107.5% in Wundanyi due to adoption of SLM practices. Yield increases of 8.7% in fodder maize and 108% in tomatoes and potatoes were observed. The percentage increase in mean annual gross margins due to adopting SLM practices was highest in Wundanyi at 242.09%. Cost-benefit analysis showed that Kinale-Kikuyu had the highest Net Present Value of US$ 4083.73 due to adopting SLM. Positive Net Present Values were an indicator of the benefits of SLM in all the catchments. Benefits accruing from the adoption of SLM practices by the farmers exceeded the costs of establishing the SLM structures in the long run. It is recommended that a pilot Payment for Ecosystem Services (PES) project be established on hilly catchments and for linkages to be made between markets for produce and farmers willing to adopt SLM practices as an incentive to adopt them.