Sustainable Asset Valuation of the Benefits of Nature-Based Infrastructure in Kenya

Most of Kenya's forest coverage is in the mountains. The forests atop Mount Kenya, the Aberdare range, the Mau Complex, the Cherangani Hills, and Mount Elgon are known as “water towers,” forming the upper catchment of most rivers in Kenya. Although they cover less than 2% of the country’s total land area, they provide invaluable ecosystem services and almost 75% of Kenya’s water. However, these water tower ecosystems have been severely degraded through informal settlements, overgrazing, deforestation, and the conversion of forest land to agriculture.

Communities are detrimentally affected by these unsustainable activities, which damage the environment and fuel resource conflicts. There is also insufficient diversification of crops and livestock, as well as a lack of infrastructure for water access and irrigation. Consequently, malnutrition is prevalent, driven by inadequate diets, poor food management, infectious diseases, and social factors like dietary taboos.

The Kenyan State Department for Crop Development, under the Ministry of Agriculture and Livestock Development and supported by the International Fund for Agricultural Development (IFAD), has developed the Integrated Natural Resources Management Programme (INReMP) to assist local communities. Spanning 100,000 ha, the program fosters community engagement and promotes climate-smart agricultural practices, clean energy solutions, and spring and water storage protection, among other initiatives, with the hope of impacting 100,000 households and nearly 600,000 people.

In collaboration with IFAD and local partners, we assess how the NBI components of the program contribute to protecting local communities against natural hazards and boost crop productivity.

We assessed the benefits of various NBI interventions, including

• 13,500 ha of agroforestry,
• 20,000 ha of reforestation,
• 13,900 ha of rangeland rehabilitation, and
• 14,900 ha of wetland restoration.

Our assessment found that for every USD 1 invested in NBI, between USD 1.91 and 1.71 could be returned in benefits for the environment, society, and the economy. This includes avoided crop losses through drought mitigation, increased crop production, new revenue streams from agroforestry and livestock, job creation, and carbon sequestration.

The most significant benefits come from the implementation of agroforestry, through the revenues from fruit and timber produced at USD 168.1–167 million over 25 years, closely followed by avoided effects of drought, which could prevent costs of between USD 67.3–105.4 million.