Commercial forestry investment for wealth creation, boosting manufacturing, food security, health and attainment of 10% tree cover in Kenya | |
Author(s): | Joshua K. Cheboiwo, Jonah Kiprop and Anthony Macharia. Kenya Forestry Research Institute, P.O.Box: 20412-00200, Nairobi, Kenya. Author of correspondence: jcheboiwo@kefri.org |
Abstract: | Kenya’s forestry sector contributes 3.6% to the GDP and offers employment and income generation opportunities in plantations, manufacturing and market value chains for diverse forest products. The available land for commercial forestry includes community woodlands at 24.5 million hectares scattered mostly in the ASALs, farms and private forests estimated at 10,385,000 hectares in agricultural landscapes and public forests estimated at 3,467,000 hectares with forest plantations accounting for 125,000 hectares. The country’s wood supply potential stands at 31.4 million m3 against a national demand of 41.7 million m3 hence a current deficit of 10.3 million m3 . The private sector investors supplement public sector plantations by bringing land, financial capital and operational efficiency to expand the sector, forest product supply capacity and contribution to overall national economic development. Recent studies show that annual consumption of key forest products is valued at US$ 785,440,000 (KES 78.5 billion) that underpins the economic importance of the forest sector to the country’s economy. The country has potential to add more than 200,000 hectares of private and farmlands into the commercial forestry sector that will generate an aggregated annual income of US$50 million (KES 5 billion) to tree growers and value-added turnover of US$261 million (KES 26.1 billion) per year. The expanded commercial forests will sequester about 28.7 M tCO2 equivalent in the long term hence contributing to the country’s long term climate change mitigation goals. The secondary processing sector is huge business that includes sawmilling, reconstituted wood manufacturing, pulp, furniture and biomass energy with market potential of over 1.5 million m3 of roundwood from public, private and farm forests. Some of the businesses such as furniture is valued at US$496 million (KES 49.6 billion) with imports accounting to KES 6.6 billion (US$66 million). The commercial biomass energy sector that includes firewood and charcoal is worth KES 70 billion per year an equivalent of 11.6 million MT of coal calorific imports worth KES 105.8 billion indicating a saving to the country of KES 30 billion. The country has put in place various policies and legislations to promote public and private sector investors to engage in commercial forestry operations in various sectors of commercial forestry mainly establishment of plantations/woodlots, wood processing and trade in forest products. The commercial forestry sector has diverse business opportunities that need enhanced investments to fully realize its socioeconomic potential and contribute to the country employment and wealth creation. |
Keywords: | commercial forestry, economic contribution, production manufacturing |
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Presentation Links: |
topictitle | Commercial forestry investment for wealth creation, boosting manufacturing, food security, health and attainment of 10% tree cover in Kenya |
type | PowerPointPresentations |
thematicarea | SPG |
researchprogramme | Hqs |
project | KCFICE |
author | Joshua K. Cheboiwo1 , Jonah Kiprop1 and Anthony Macharia1 1 Kenya Forestry Research Institute, P.O.Box: 20412-00200, Nairobi, Kenya *Author of correspondence: jcheboiwo@kefri.org |
summary | Kenya’s forestry sector contributes 3.6% to the GDP and offers employment and income generation opportunities in plantations, manufacturing and market value chains for diverse forest products. The available land for commercial forestry includes community woodlands at 24.5 million hectares scattered mostly in the ASALs, farms and private forests estimated at 10,385,000 hectares in agricultural landscapes and public forests estimated at 3,467,000 hectares with forest plantations accounting for 125 |