Effect of Participation in Commercial Production of Medicinal Plants through Community-Based Conservation Groups on Farm Income at Kakamega Forest, Kenya

Abstract

ABSTRACT Forest conservation by peripheral communities is one of the most advocated strategies for ensuring sustainable supply of forest goods and services. In Kenya, although conservation activities generate considerable environmental improvements, studies evaluating the economic benefits are very limited. This study aimed at assessing the impact of participating in the commercialization training program by forest adjacent communities on farm income. Utilizing matching techniques, the analysis is based on the data collected from a randomly selected sample of farm households around Kakamega forest in Kenya. The results show that age, forest distance, forest benefit, market distance, and farming experience are the main factors that influence the participation in the commercialization program. Also, participating in commercial production of medicinal plants has a positive and significant effect on farmers’ income. The average treatment effect on the treated (ATT), based on three estimation algorithms, ranges from KSH. 80,047 to KSH. 176,788 per hectare, per year, implying that policy efforts that focus on the participation in the commercialization program of medicinal plants can enhance incomes among farm-dependent households. The findings from this study suggest that upscaling the participation in the commercialization program to other areas.