National Forest Programme 2016-2030

10.4 Updating the NFP 154 REFERENCES AND APPENDICES 155 References 156 Appendix A: History of forestry in Kenya 161 Appendix B: The participatory process 163 8viii Kenya Factsheet L AND • Kenya, including its water bodies, covers about 582,646 km2. • 20% of the country is classified as arable and 80% arid and semi-arid lands. • Kenya is classified as a water-scarce country. P OPULATION • In 2015 projected to be 48,148,661 persons. • Average population growth is 2.14% per annum. • 61% of the population is between 15 and 24 years. • High unemployment, approximately 40%. • Christian 82.5%, muslim 11.1%, traditionalists 1.6%, others 4.8%. FORESTS • The national forest cover in 2010 was 6.99%. • Protected forest areas cover about 3.2% of the total land area. However, this does not include the recent gazetting Boni Forest. WOOD-ENERGY • Over 80% of the national energy supply is met from fuel wood. • Forests contribute 3.6% to the GDP excluding environmental services and contributions to other sectors. • Current wood deficit is projected to increase from 10 million m3 to at least 15 million m3 per year by 2030. • The private sector including tree farmers, communities and medium- and large-scale investors provide 90% of the wood supply. AGRE E M E NTS The Republic of Kenya is party to international agreements including those on Biodiversity, Climate change, Climate Change–Kyoto Protocol, Desertification, Endangered species, Hazardous wastes, Law of the Sea, Marine dumping, Marine life conservation, Ozone layer protection, Ship pollution, Wetlands, Whaling. ix9 National Forest Programme 2016–2030 Abbreviations ASAL Arid and semi-arid lands M&E Monitoring and evaluation CBO Community-based organisation MEA Multilateral Environmental Agreement CF Community forestry MENR Ministry of Environment and Natural Resources CFAs Community forest associations MENR & RDA Ministry of Environment, Natural Resources CIFOR Centre for International Forestry Research & Regional Development Authorities CPA Charcoal Producer Association MEWNR Ministry of Environment, Water CSO Civil society organisation & Natural Resources CSR Corporate social responsibility MMMB Miti Mingi Maisha Bora Programme EAC East African Community MFW Ministry of Forestry and Wildlife ENCOM Enforcement and Compliance Division MoU Memorandum of Understanding ECOSOC United Nations Economic NACOFA National Alliance of Community and Social Council Forest Associations FAO Food and Agricultural Organisation NEMA National Environment FCC Forest Conservation Committee Management Authority FDI Foreign Direct Investments NFP National Forest Programme FDP Forest Dependent People NFRAM National Forest Resources Assessment & Monitoring FLEGT Forest Law Enforcement Governance and Trade NGO Non governmental organisation FSC Forest Stewardship Council NLC National Land Commission GDP Gross Domestic Product NPGD National Policy on Gender and Development GHG Green House Gases NRM Natural resource management GNP Gross National Product NTFPs/ Non-timber forest products/ GOK Government of Kenya NWFPs non-wood forest products IFPs Indigenous Forest Peoples NWFP Non-wood forest product IUCN International Union for ODA Overseas Development Assistance Conservation of Nature PELIS Plantation Establishment for IUFRO International Union of Forest Livelihood Improvement Scheme Research Organizations PES Payment for Ecosystem Services JFM Joint Forest Management PESTAL Political, Economic, Social, Technological, KAM Kenya Association of Manufacturers Environmental & Legal aspects KEFRI Kenya Forestry Research Institute PFM/JFM Participatory Forest Management/ KEPSA Kenya Private Sector Alliance Joint Forest Management KFS Kenya Forest Service PLUP Participatory Land Use Planning KFWG Kenya Forest Working Group PPCPs Private, Public and Civic sector KIFCON Kenya Indigenous Forest investors through Partnerships Conservation Project PPPs Public–Private Partnerships KNBS Kenya National Bureau of Statistics RBA Rights-based approach KWS Kenya Wildlife Service KWTA Kenya Water Towers Agency RDBMS Relational Database Management System MA&ED Market Analysis and REDD+ Reduced Emissions from Deforestation Enterprise Development and Forest Degradation x10 SADC Southern-African Development Community UNDP United Nations Development Programme SDGs Sustainable Development Goals UNEP United Nations Environment Programme SFM Sustainable Forest Management UNFCCC United Nations Framework SMMEs Small, micro and medium-sized enterprises Convention on Climate Change SWOT Strengths, Weaknesses, UNFF United Nations Forum on Forests Opportunities and Threats VC/VCA Value chain/Value chain approach TEV Total economic value VCS Verified Carbon Standard TIES The International Eco-tourism Society WHO World Health Organisation TGA Tea Growers Association WB World Bank TMA Timber Manufacturers Association WRMA Water Resource Management Authority UNCED United Nations Conference on WWF World Wide Fund for Nature Environment and Development Technical Forest Definitions Forest Forest in this NFP means a land area of more than 0.5 ha, crown cover of 10%, trees of at least 2.5 m height, which is not primarily under agricultural or other specific non-forest land use. In line with the Constitution, the NFP also operates with “tree cover”, e.g. trees on farms. Public forest Forest owned by the State or administrative units of the Public Administration, or by institutions or corporations owned by the Public Administration. It also refers to forests on public land under the authority of a State organ. Community forest Forest held by communities or held in trust by county governments and where forest management rights and responsibilities are transferred from the Public Administration to local communities through long-term leases or management agreements. Private forest Forest owned or managed privately by an individual, institution or corporate entity as freehold or leasehold. Community Forest A group of local persons who have registered as an association or other Association organisation established to engage in forest management and conservation jointly with the Kenya Forest Service (KFS) or any other forest owner. Forest ecosystem A dynamic complex of plant, animal, and micro-organism communities and their non-living environment interacting as a functional unit. Forest concession The right of use granted to an individual or organisation in respect to a specific area in public or community forest for a specified period. Water tower Forested area that forms the upper catchment of the rivers in Kenya. Non-timber forest These include gums, resins, honey, essential oils, frankincense, myrrh, fibres, products/non-wood medicinal and aromatic plants, dying and tanning materials, recreational facilities, forest products non-resident cultivation, grazing, soil and murram, asparagus fern, quarrying, grass and water. These are known locally as minor forest products. National Forest Programme 2016–2030 11xi EXECUTIVE SUMMARY The National Forest Programme (2016–2030) is the first cross-sectoral and multi-stake- holder national framework for developing and coordinating forest development aimed at meeting the needs of Kenyans in the next 15 years. It builds on the constitutional values and principles of the Kenya Vision 2030, and advances forest development to 2030. In this way, forestry development values, principles and time targets now mirror national development goals. Integrating forestry with other sectors within a planning framework took a comprehen- sive and participatory process with 600 stakeholders over a 20-month period. Meaning- ful participation balance was attempted between the two tiers of government (national and county), the private sector, communities and the civil society. Justification About 7% of Kenya’s total land area is forest. These forests provide goods and services such as wildlife habitat, biological diversity, water catchment, employment opportuni- ties and livelihood sources. Forests and trees play multiple functions in contributing to the livelihoods of communities, especially women and marginal groups, in supplying food and rural energy. However, these forests are threatened with agricultural expan- sion, over-exploitation and unsustainable use of forest resources; population increase and widespread youth unemployment have led to increased pressure on forest resources. The National Forest Programme was developed to increase forest cover, boost the forest sector’s contribution to the national economy, enhance resilience to climate change, and improve livelihoods. This programme will significantly enhance not only sustaina- ble forest management but also improve the coordination of various sectors. Goal, objectives and structure The national forest framework aims at sustainable forest management and has the overall goal: “To develop and sustainably manage, conserve, restore and utilise forests and allied resources for socio-economic growth and climate resilience.” The strategic objectives are: i) Increase tree cover and reverse forest degradation through sustainable forest management, ii) Enhance forest-based economic, social and environmental benefits including by improving the livelihoods of forest-dependent people, iii) Enhance capacity development, research and adoption of technologies to increase value adding to forest products, iv) Create an enabling environment for mo- bilising resources and investment to spur forest development, and v) Inculcate good forest governance through integrating national values and principles of governance in forest development. This document is in 3 parts divided into 10 chapters. The Background and Descriptive Part (chapters 1–4) pro- BACKGROUND vides the introduction, the concept of sustainable forest management and the national forest programme, Kenya’s forest resources in a national and international perspective, and the legal and policy frameworks that have a bearing on people, trees and forests. The last part describes the forest types, resources and benefits. 12 xii The Analytical Part (chapters 5–6) examines the nexus—people, trees and A N A LYS I S forests—in the dynamics of population and land, the drivers of deforest- ation and degradation as well as macro-economic factors. Ideas and op- portunities are analysed for potential development and application in the demand–supply continuum of wood products, scope for value addition and commercialisation of non-wood forest products. They are also scrutinised for climate change resilience, woodland management, community forest- ry, outgrower schemes, forest market surge, industrial and legislative de- velopment, plantation productivity and modernisation, forestry in a green economy and finance opportunities. The Strategic Part (chapters 7–10) is organised in a results framework de- S T RATE G Y sign; it formulates the hierarchy of objectives, envisaged outcomes, the- matic clusters, programmes and strategies. The programmes are grouped under eight thematic clusters: i) Forest Productivity, ii) Forest Governance, iii) Natural Forest Management and Conservation, iv) Forest for Water, v) Forest for Energy vi) Forestry Education, Training and Research, vii) Forest and Climate Change, and viii) Forest Financing. A monitoring and evalua- tion model with outcomes, indicators, targets, baselines and risks supports the results framework. NFP commitments and key messages To meet the constitutional values and the principles of the Vision 2030, the National Forest Programme brings stakeholders across sectors to work together in partnerships striving for improved Competitiveness, Good forest governance, and Livelihoods. Other key messages: 1. Promoting sustainable forest management 2. Increasing forest cover to at least 10% Minimum 3. Increasing food, water and energy security 10% tree 4. Enhancing environmental resilience to climate change cover by 5. Creating an enabling environment for investments in forestry 6. Enhancing efficiency, effectiveness and skills throughout forest value chains 2030 7. Promoting public–private partnerships 8. Segregating roles and responsibilities of actors and implementing institutions/agencies 9. Mainstreaming the full value of forests in the national economy 10. Promoting equitable benefit-sharing mechanisms 11. Increasing community participation in forest development 12. Making forestry information accessible to improved awareness and decision making 13. Improving forestry education and research and technical skills development 14. Ensuring broad-based economic empowerment in the private sector, gender, youth and special groups 15. Promoting alternative energy sources and efficient use 16. Advancing good governance, reducing bureaucracy and increasing transparency in forest value chains. The programme will be updated every five years. National Forest Programme 2016–2030 13 xiii ” You cannot protect the environment unless you empower people, you inform them, and you help them understand that these resources are their own, that they must protect them.” Wangari Maathai 14 1 INTRODUCTION BACKGROUND AND DESCRIPTION T h e N a t i o n a l Fo r e s t Pr o g ram m e 2 01 6 –2030 i s a m u l t i - s t a k e h o l d e r, c r o s s -s e c t o ral f ram e wo r k to guide forest development in Kenya. T h e p r o g ram m e c u t s ac r o s s the missions and goals of the national and county governments, communities, civil societies and t h e p r i v a t e s e c t o r. BACKGROUND

1.1 — THE KENYA NATIONAL

1.1 THE KENYA NATIONAL FOREST PROGRAMME Forest development requires a framework to coordinate its programmes. The Forestry Master Plan developed in 1995 provided an opportunity for forest sector development but encountered implementation challenges. The National Forest Programme (NFP) is therefore designed to coordinate the sector with reference to international standards and adhering to the aspirations of Kenyans. The NFP is a national multi-stakeholder, cross-sectoral framework involving national and county governments, communities, civil societies and the private sector in promot- ing sustainable forest management. The NFP integrates national values of integrity, good governance and social justice into the forestry sector. It forms a reference for forest management and aims to meet local, county, national and global needs by linking national and international partner- ships. The NFP will enhance environmental, economic and social sustainability in the The NFP forms a Kenyan forest sector by achieving five strategic objectives: strategic supportive 1. Increase forest/tree cover and reverse forest degradation. framework for 2. Enhance forest-based economic, social and environmental benefits. implementing 3. Enhance capacity development, research and adoption of technologies. 4. Increase investments in forest development. the principles 5. Integrate national values and principles of good and values of the governance in forest development. Constitution and of It is important to reverse forest degradation and increase forest and tree cover in the Vision 2030. country by mobilising the private sector, particularly tree farmers, investors and com- munities in the forests-to-markets value chain. Profitability and competitiveness in forestry and forest-based industries need to be in place to safeguard the social and environmental base for people’s well-being. Given Kenya’s increas- ing population, the demand for food, water and other products will exert pressure on forest resources. Therefore, in targeting the national goal of increased forest cover and climate change mitigation and adapta- tion, solutions must be found at the nexus of agriculture and forestry. 2 Profitability of tree-growing and forest industries requires an enabling environment for business, access to markets and efficient value chains that provide a fair share of value addition to all key actors along the value chains. Access to credit facilities, fair- priced investment capital, transparent licensing and pricing of forest products, and the latest technical know-how are needed to use resources efficiently. For sustainable for- est management to thrive, improved forest governance is mandatory. The key building blocks are participation of all relevant stakeholders, enhancement of law enforcement and compliance, zero tolerance to corruption, efficiency in service delivery, financial feasibility of business making as well as improved transparency, accountability and information provision on Kenya’s forestry sector. Kenya has a wide range of valuable forest ecosystems that can meet the increasing needs of its peoples if the resources are used in a sustainable manner. The key forest ecosystems are riverine, dryland, marine, western rainforest systems and montane for- ests. The montane forest ecosystems include the five major water towers: Mount Ken- ya, Aberdare Range, Mau Forest Complex, Mount Elgon and the Cherangani Hills. They represent the largest tracts of high-canopy forests that form the upper catchments for most of the main rivers, and are sources of essential wood and non-wood products. Dry- land forests are also essential in providing the basis for energy, fodder and construction material for livelihoods in the arid and semi-arid lands (ASALs). A chronological descrip- tion of the historical development of the forestry sector is presented in Appendix A. Kenya’s population of 48 million is projected to rise to 66.3 million in 2030 (WPR, 2015). This increased population will exert more pressure on forest resources due to increased demand for food. National Forest Programme 2016–2030 GOAL Sustainably managed forests and allied natural resources for socio-economic growth and climate resilience The “NFP tree” has roots deep in the Constitution, the Kenya Vision 2030, and related policies and legal frame- works. It resonates with the Sustainable Development Goals and complies with international and regional agreements. The branches represent the eight thematic clusters in the imple- EIGHT mentation of the framework. THEMATIC The trunk symbolises the impact areas CLUSTERS of the NFP: improved competitiveness, good forest governance and enhanced 25 PROGRAMMES livelihoods. See chapter 7 for more details of the programme design. National Forest Programme 2016–2030 3 BACKGROUND

1.2 — UNIVERSAL PRINCIPLES

1.2 UNIVERSAL PRINCIPLES FOR NATIONAL FOREST PROGRAMMES National forest programmes (NFPs) are agreed frameworks for forest policy, planning and implementation aimed at covering a wide range of implementation approaches for sustainable forest management. They are open-ended, country-driven, participatory and adaptive processes with no universal recipe for contents or outcomes. This NFP has adopted internationally recognised principles for NFP development. Universal Principles for NFPs When developing and agreeing on the concept of national forest programmes, the UN Member States agreed that “national forest programme” is a generic term encompassing a wide range of approaches to sustainable forest man- agement within different countries that can be applied at ‘national and sub- national levels based on a number of principles as per the Intergovernmental Panel on Forests’ Fourth Session held in 1997. Countries agreed that regardless of the approach adopted by individual countries, national forest programmes are long-term, iterative processes and should recognise the following: • National sovereignty and country leadership; • Consistency with national policies and international commitments, and integration with the country’s sustainable development strategies; • Partnership and participation; • Good forest governance; • Holistic, inter-sectoral and iterative approaches. 4 BACKGROUND

1.3 — SUSTAINABLE FOREST

1.3 SUSTAINABLE FOREST MANAGEMENT Sustainable Forest Management (SFM) is both the tool and the objective throughout this NFP. SFM is defined in the box. The UN General Assembly of June 1997 defined SFM as a “dynamic and evolving concept that aims to maintain and enhance the economic, social and envi- ronmental values of all types of forests, for the benefit of present and future generations”. The NFP presents a long-term framework based on principles of SFM including enhanc- ing forest value chains, competitiveness, job creation and tapping market potential. It defines current and future intervention areas for forest and forestry development and transformation. SFM, as recognised by FAO and UNFF, consists of core integrated elements: • Legislation; • Policy and institutional framework; • Extent of forest resources; • Socio-economic functions of forests; • Forest biological diversity; • Protective functions of forest resources; • Forest health and vitality; and • Productive functions of forest resources. Forests around Mount Kenya form one of the country’s most important water catchment areas. National Forest Programme 2016–2030 5 BACKGROUND

1.4 — THE NFP DEVELOPMENT

1.4 THE NFP DEVELOPMENT PROCESS Forest ecosystems and landscapes are interconnected with other sectors. They cut across county boundaries and involve multiple stakeholders, who include local com- munities, public institutions, the private sector and civil society. In this regard, forest development cannot be a top—down activity but requires consultation. The NFP development started in 2012 through consultations with various stakeholders including women, youth and children’s sensitisation assemblies. The private sector, state corporations, communities and civil societies were also extensively consulted. Eight thematic clusters were identified: 1. Forest productivity 2. Forest governance 3. Natural forest management and conservation 4 4. Forest for water 5 3 5. Forest for energy 6 6. Forestry education, training 2 7 and research 1 8 7. Forest and climate change 8. Forest financing In 2014 the then Ministry of Environment, Water and Natural Resources (MEWNR), con- Forest development stituted the NFP Secretariat and a Steering Committee to drive the formulation process. This process was highly participatory and was supported jointly by the Government of is a major endeavour Kenya and the Government of Finland. that requires Five regional workshops, awareness meetings, seminars, and two public hearings were undertaken. More than 700 stakeholders representing national and county governments, mobilisation state corporations, communities, civil society, professional associations and the private of multiple sector were consulted and involved. Special sessions were held with disadvantaged and marginalised members of society including women, youth and forest-dependent stakeholders and communities. entire societies During the regional workshops, stakeholders elected 140 representatives for continued engagement in the NFP development process in the eight thematic clusters (also re- at all levels. ferred to as thematic working groups). The thematic working groups provided the bulk of input that formed the basis for producing the NFP documents. The sequence, out- comes and details of the process are presented in Appendix A. The Strategic Results Framework is used at all levels and is in this NFP highly focused on outcomes. The Results Framework provides the basis for identifying what type of 6 interventions will lead to the outcomes identified as preconditions for achieving the long-term goal. Through this approach, the precise link between the interventions and achievements is more fully understood. This leads to better planning as interventions are linked to a indepth understanding of how change actually happens. It also leads to better monitoring and evaluation as it is possible to measure progress towards the achievement of longer term goals that goes beyond identifying programme outputs. The strategic M&E framework is presented in Chapter 10. This document was reviewed during several consultative meetings. Over 600 representa- tives from the national and county governments, civil society, private sector and communi- ties participated and contributed to the preparation of the NFP. National Forest Programme 2016–2030 7 2 FORESTS IN BACKGROUND AND DESCRIPTION ECONOMIC DEVELOPMENT AND GLOBAL DIALOGUE Fo r e s t s a n d t r e e s o n far m s an d ran g e lan d s provide economic, environmental and social benefits for economic development, as e n v i s a g e d i n K e n y a’s Vision 2030. BACKGROUND

2.1 — THE ROLE OF FORESTS IN

2.1 THE ROLE OF FORESTS IN NATIONAL DEVELOPMENT

2.1.1 — Macro-economic benefits

2.1.1 Macro-economic benefits According to the Green Economy Strategy Implementation Plan 2015 (GoK, 2015a), the natural resource-related sectors contribute about 42% of Kenya’s GDP and 70% of over- all employment. These sectors include agriculture, mining, forestry, fishing, tourism, water supply and energy. The Constitution provides for a robust governance framework in the management of natural resources by the two-tier government system. Specifical- ly, the Constitution stipulates devolution, equity in benefit sharing and sets a target of a minimum 10% tree cover. Well-managed forests have tremendous potential to contribute to sustainable devel- opment. Indeed, forestry can make a significant contribution towards meeting green economy objectives and promoting food security. The forestry sector’s contribution to the national economy is largely unrecord- ed as most forest products are used for subsistence or are traded in informal markets (UNEP, 2012). Available statistics show that forests contributed about 1.4% to Kenya’s GDP in 2014. FAO’s State of the World’s Forest (2014), estimates that Kenya’s forestry sector contributes USD 365 million to the GDP annually. These sta- tistics, however, do not include forestry’s contribution to household wood energy (charcoal production), non-timber products and ecosystem services. The national study on charcoal in Kenya by ESDA (2005) estimated that annual production was 1.6 million tons. Production has since risen to 2.5 million tons, an in- crease of 156% within eight years (or almost 20% growth per annum). The economic value of charcoal production over the same period grew from KShs 32 billion to KShs 135 billion, representing a 422% growth. To provide effi- cient and effective management of charcoal production, Forests (Charcoal) Rules, 2009 have been developed and are operational. The furniture market supplied by the informal (jua kali) sector and targeting the domestic market has an estimated production value of about KShs 23 billion whereas the formal furniture industry estimate is worth KShs 15 billion, as of 2013 (Creapo Oy, 2014). A survey on production and marketing of non-wood forest products carried out by Vom- igal Ltd., found that NWFPs play important roles in Kenya’s economy, generating about Charcoal provides KShs 3.2 billion per year (USD 40 million per year). However, this figure is not accounted for in national statistics. Grazing and hunting of game meat account for nearly 60% domestic energy of NWFPs, about KShs 510 million. Other NWFPs include fibre (KShs 149 million), honey for 82% of urban (KShs 139 million) and others (KShs 70 million) (KFS, 2007; FAO, 2015b). and 34% of rural Tourism generates about USD 1 billion of foreign revenue for the nation, second to tea exports (Doya, 2015). Parks and reserves remain the main attraction for most tourists: households. over 70% of all foreign tourists rank wildlife as their primary attraction and undertake wildlife and nature forest-based tourism. National Forest Programme 2016–2030 9 In conclusion, the true value of forest resources’ annual contribution to the GDP is es- timated at 3–3.6%, but this estimate still excludes the vast value of ecosystem services (FAO, 2014; UNEP, 2012).

2.1.2 — Socio-economic benefits

2.1.2 Socio-economic benefits Major forest products are timber, poles and fuel wood. Other products include non-tim- ber forest products (gums, resins, honey, etc.) and fodder, and form substantial inputs to rural life and small-scale enterprises. Similarly, medicinal trees and forest plants play important roles in rural health. The forest industry Wood fuel is the major form of biomass energy in Kenya. Firewood meets over 64.5% of household energy needs while charcoal meets 7% (Weismann et al., 2014). Charcoal is (formal and informal) the dominant fuel in urban households. It provides domestic energy for 82% of urban and 34% of rural households. The charcoal sector has acquired considerable economic employs directly importance because of increasing urbanisation (Githiomi, 2012). about 750,000 Forest trees provide important food and fodder during periods when people have less Kenyans and time for food preparation, such as during peak agricultural seasons. Traditionally, trees have provided food and fodder during emergency periods, especially during drought and indirectly benefits famine. Nonetheless, the decline in forest resources has led to a decline in knowledge at least 4 million about them. Forests play an invaluable role in meeting cultural and spiritual needs. Forests are im- more citizens. portant as sacred sites for cultural ceremonies by local communities (e.g. Kaya Forests at the coast). Several indigenous communities have depended on forests for centuries. Among manufacturing industries in Kenya, the forest industry is a significant employer. According to the KNBS Statistical Abstract (KNBS, 2014), the total wage employment was 26,371 persons employed in the sawmilling indus- try; 10,188 persons in furniture manufacturing (in addition to the 65% of the furniture production which is produced by an unknown number of jua kali artisans in the informal sec- tor) and the pulp and paper industry employed 56,980 persons. The charcoal industry is also part of the informal sector and is by far the largest contributor to job creation, employing approximately 700,000 peo- ple, who in turn are believed to be supporting 2.3–2.5 million dependants. In spite of its signifi- cance, the charcoal sub-sector continues to bear a negative image and remains largely informal, thus limiting its potential to attract investment (MEWNR, 2013a). It is estimated that the formal forest sector employs 18,000–50,000 people directly and 300,000–600,000 in- directly, making it a source of employment particularly in the rural areas of Kenya (FAO, 2014; KFS 2015b). The potential to increase jobs through enhancing value chains is substantial. Community-based tourism and ecotourism is a growing sector in Kenya. The tourism sector currently accounts for 5% of the global tourism market and is growing at a rate of 20–30% annually. In Kenya infrastructure has been prioritised and is under development. Community members are employed and trained in nature-based projects and benefit from wages, community development funds and involvement in spin-off enterprises (KTDC, 2015). It is estimated that 80% of people in Africa use traditional medicine (FAO, 2014; WHO’s Traditional Medicine Strategy, 2002) well above its use in India (65%) and China (40%). Traditional medicine therefore plays an important part in the health of people in Africa and Kenya as well. Forests provide the bulk of traditional medicines. 10

2.1.3 — Environmental and ecological benefits

2.1.3 Environmental and ecological benefits Forest ecosystem services are the foundation for the success of other productive sec- tors such as agriculture, tourism, infrastructure, livestock, wildlife, industry, water and energy. Forest habitats support a wide variety of ecological niches and are rich in flora with about 7,000 indigenous plant species. Forests are also reservoirs of biodiversity and critical habitats for wildlife. For example, mangrove forests are essential breeding grounds for fish and protect the coastal areas from degradation. Ecological functions (nutrient cycling and erosion prevention) of trees in the ASALs and highland areas support pastoralism and agriculture. Dryland forests are therefore criti- cal to human existence and drought resilience in the ASALs. Forest development and climate change are intimately linked. Forests play an impor- tant role in carbon sequestration and in climate change mitigation and adaptation. Oth- er benefits include provision of products and services that people depend on directly or indirectly such as nitrogen fixing, soil and water conservation, and provision of shade, fodder, fibre and materials for construction. Forests provide wildlife habitat, biological diversity, water catchment, employment op- portunities and livelihood sources. Forests and trees play multiple functions in contrib- uting to the livelihoods of Kenyans, especially of women and marginal groups, through provision of food and energy especially in rural areas. The forested water towers and other forested catchment areas supply most of the nation’s water. They feed, filter rainwater and provide a sustained water supply to rivers and lakes as well as providing more than 15,800 million cubic meters of water per year, representing over 75% of the country’s renewable surface water resources. Forests store water during the rainy seasons and release it slowly, ensuring water flow during dry periods, thus pro- viding resilience to season- al weather variations. They are, however, threatened by agricultural expansion, over-exploitation and un- sustainable use. Between 2000 and 2010, deforest- ation in the water towers amounted to an estimated 50,000 hectares, leading to reduced water availability by approximately 62 million cubic meters per year (UNEP, 2012) National Forest Programme 2016–2030 11 BACKGROUND

2.2 — THE INTERNATIONAL

2.2 THE INTERNATIONAL FOREST POLICY AND THE STATE OF GLOBAL FORESTS The development of an international forest policy has been going on since the 1980s and especially so after the Rio Summit, the United Nations Conference on Environment and Development (UNCED) in 1992. Despite these efforts, the global natural forest cover was lost at a rate of about 13 mil- lion hectares per year between 1980 and 2010 (FAO, 2010). Currently, forest degradation and deforestation are major contributors to the total global greenhouse gas emissions. Deforestation is thus a major contributor to climate change and with it the increased frequency of natural disasters experienced globally. Some countries like Rwanda, Costa Rica, China and Vietnam have reversed the trend of national deforestation. The loss of forests is also a major problem in many African countries including Kenya. The African Union has fully recognised this: “The African Union recognises forests and woodlands as important resources for uplift- ing the continent from poverty, especially with regard to energy, food, timber, a wide range of non-timber forest products and environ- mental services that underpin ecosystem functions in support of agricultural produc- tivity and sustainability” (IIED, 2014c. p. 39). In this regard, during the last decade Kenya has been active in taking definite steps to reduce forest degradation and deforestation. The country has increasingly participated in international forest dialogues and has embraced international approaches to en- hance sustainable forest management at national and local levels. 12 BACKGROUND

2.3 — INTERNATIONAL

2.3 INTERNATIONAL FRAMEWORKS

2.3.1 — Approaches for setting priorities

2.3.1 Approaches for setting priorities Forestry Master Plans: The development of forestry master plans was launched in the 1960s and continued up to the 1990s. Forestry master plans were sector based and with detailed technical plans and sector projections. Kenya Forestry Master Plan: Preparatory studies and development of the Kenya For- estry Master Plan (KFMP) took place with Finnish assistance from 1990 to 1995. The implementation of the master plan was anchored on five primary development pro- grammes supported by other cross-cutting programmes covering policy and legislation reforms, human resources, research and development, extension and planning, moni- toring and environmental assessment. An overall assessment of the implementation of the five primary programmes indicates mixed achievements due to weak stakeholder support, inadequate political goodwill and weak implementation. Nevertheless, a nota- ble achievement was the policy review and institutional reforms which led to creation of the Kenya Forest Service, and legal provision for wider stakeholder participation in forest management (KFS/DoF, 1994). Tropical Forestry Action Programme: Forestry master plans were largely replaced dur- ing the 1980s by initiatives to curb tropical deforestation through the Tropical Forestry Action Programme. Forestry Sector Reviews: Forestry sector reviews were commonly launched in the 1980s, often initiated by the World Bank and integrated with the Tropical Forestry Action Programmes. The sector reviews had a focus on commercial wood production. National Environmental Action Plans: Development of national environmental ac- tion plans was common in African countries in the late 1980s. They were linked to the creation of national environment management authorities. In Kenya, the Environment Management and Coordination Act was enacted in 1999, which created the National Environment Management Authority (NEMA). Forestry was considered part of environ- mental management. National Forest Programmes (NFPs): NFPs are based on internationally recognised concepts for country processes towards the achievement of sustainable forest manage- ment. The concept originated from UNCED in 1992 and has been conceptualised through the United Nations-supported “Inter-Government Panel” and “Forum on Forests”. NFPs deviate from previous strategies by building on a cross-sectoral, participatory, transpar- ent and inclusive approach, which is a product of the new international forest agenda. Cross-sectoral approach and broad stakeholder participation are the central principles in National Forest Programme preparation. National Forest Programme 2016–2030 13

2.3.2 — Evolution of a new international forest agenda

2.3.2 Evolution of a new international forest agenda A series of international events have led to a new international forest agenda. Forest development is now considered an integral part of sustainable development. Some im- portant milestones: Rio 1992 – The Earth Summit The need to integrate sustainable development with forest development became a cen- tral element in the United Nations Conference on Environment and Development, also known as the Earth Summit. An outcome of the conference was a recognition declared worldwide that sustainable development and forests are inter-twined dynamics. Forest- ry was specifically referred to in chapter 11 of Agenda 21 under “Combating Deforesta- tion”. A subsequent outcome was The Forest Principles, a set of guiding principles for SFM. The Forest Principles express the necessity of recognising the close and interdependent relationship between forest development, our society and human existence as a whole. Other important developments Between 1995 and 1997, dialogue on forests took place in the Intergovernmental Panel on Forests, which was transformed into the Intergovernmental Forum on Forests 1997–2000, and again in 2002 into the UN Forum on Forests (UNFF). In 2000, the United Nations Gen- eral Assembly adopted the Millennium Development Goals. Forestry development was specifically related to Millennium Development Goal 7: Ensure Environmental Stability. At the World Summit on Sustainable Development held in South Africa in 2002, sus- tainable development was recognised as the overarching goal. The MDGs were pre- sented for implementation. In the same year, the UNFF developed the landmark Non- Legally Binding Instrument on All Types of Forests, commonly known as the Forest Instrument, entailing four Global Forest Objectives (FAO, 2013b). The intergovernmental instrument on forests consists of policies and measures to strengthen stakeholder par- ticipation within the framework of NFPs. The four Global Forest Objectives: 1. Reverse the loss of forest; 2. Enhance forest-based economic, social and environmental benefits; 3. Increase significantly the area of sustainably managed forests, including protected forests, and increase the proportion of forest products derived from sustainably managed forests; 4. Reverse the decline in official development assistance for sustainable forest management (UNFF Secretariat, 2014). United Nations Conference on Sustainable Development In 2012, twenty years after the first Rio Summit, the United Nations Conference on Sus- tainable Development (UNCSD) was likewise held in Rio de Janeiro. A prime result was the non-binding document The Future We Want. In this document, Heads of States reaffirmed their commitment to the promotion of a sustainable future and, in view of the expiring Millennium Development Goals, the Sustainable Development Goals (SDGs) were set to promote sustainable development from 2015 and onwards. 14

2.3.3 — Sustainable Development Goals

2.3.3 Sustainable Development Goals The Sustainable Development Goals succeeded the Millennium Development Goals as the international development agenda from 2015. Forests have received remarkable at- tention and the SDGs dialogue on multiple aspects. In the SDGs, forests are addressed directly under six SDGs: • SDG6: Ensure availability and sustainable 6 management of water and sanitation for all 11 • SDG11: Make cities and human settlements inclusive, safe, resilient and sustainable 12 • SDG12: Ensure sustainable production and consumption patterns • SDG13: Take urgent action to combat climate change and its impacts 13 • SDG14: Conserve and sustainably use the oceans, seas, marine resources for sustainable development 14 • SDG15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, 15 and halt and reverse land degradation and biodiversity loss. Recognising multiple functions of forests the SDGs set out strong forest-based targets: • By 2020, ensure conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems with their services, in particular forests, wetlands, mountains and dry lands, in line with obligations under international agreements (SDG15.1). • By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and increase afforestation and reforestation (SDG15.2). • Significantly mobilise resources from all sources and at all levels to finance sustainable forest management, and provide adequate incentives to developing countries to advance sustainable forest management including conservation and reforestation (SDG15.b). • By 2020, protect and restore water-related ecosystems including mountains, forests, wetlands, rivers, aquifers and lakes (SDG6.6). • By 2030, achieve the sustainable management and efficient use of natural resources (SDG12.2). However, the SDGs do not capture the true value of forests nor tackle drivers of de- forestation nor ensure more focus on social balances in the use of and benefit from for- ests. Such priorities must instead be refined and adopted through a national strategic forest framework, notably, national forest programmes (adapted from IIED 2014a; IIED 2014b; IIED 2014c).

2.3.4 — Other international initiatives and agreements

2.3.4 Other international initiatives and agreements In line with the Constitution, any treaty or convention ratified by Kenya shall form part of the law of Kenya. This is applicable to multilateral environmental agreements (MEAs). Some of the international and regional initiatives and agreements with a bear- ing on forestry development in Kenya are listed in Table 2.1. National Forest Programme 2016–2030 15 Table 2.1. International initiatives and agreements with a bearing on forestry. Initiatives/agreements/ Role and mission conventions related to international forest policy African Convention on the The convention encourages individual and joint action for the conservation, Conservation of Nature utilisation and development of soil, water and fauna for the present and future. and Natural Resources Collaborative Partnership The CPF is an informal, voluntary arrangement among 14 international on Forests (CPF) organisations and secretariats with substantial research or programmes on forests. The CPF mission is to promote sustainable management of all types of forests and to strengthen long-term political commitment to this end. The Committee on Forestry This is an intergovernmental forum linked to FAO for discussion on forests. It identifies policy and technical issues in global forestry. The Common Market for Eastern COMESA is a regional economic treaty established in 1993 amongst 20 countries. and Southern Africa (COMESA) COMESA has a forest management strategy that outlines key investments in the forestry sector such as payments for environmental services, combating illegal trade and capturing the full value of forestry sectors in national economies. Convention on Biological CBD conserves biological diversity, promotes sustainable use Diversity (CBD) of its components and encourages equitable sharing of the benefits arising from the use of genetic resources. The Convention on Int. Trade in CITES protects endangered species. Endangered Species (CITES) Forest Law Enforcement, The European Union adopted the Action Plan for FLEGT in 2004 and the Governance and Trade (FLEGT) subsequent timber law, with the ultimate goals of significantly reducing the trade and use of illegally harvested timber whilst promoting legally harvested timber in the European Union. The underlying rationale is to enshrine SFM and the rule of law in timber trade. An initiative “East African FLEGT” has prepared a shared strategy for FLEGT development in the region. International agreements on Various certification schemes exist. One is the FSC Principles and Criteria— certification of sustainable forest the highest standards of forest management that is environmentally management and products appropriate, socially beneficial and economically viable. Kenya has developed a draft strategy for FSC accreditation and standards. A study by MENR and KFS on Governance for East African Countries in 2007 recommended certification schemes to be developed (KFS, 2007). Intergovernmental Authority In 1983, six countries in the Horn of Africa, including Kenya and Uganda, on Development (IGAD) took action through the UN to establish an intergovernmental body for development and drought control in their region. In 1996, it was transformed into a new organisation with expanded mandate. It has HQs in Djibouti. International Convention Recognises and protects the rights of breeders of new for the Protection of New varieties of plants and their successors. Varieties of Plants International Plant Protection IPPC maintains and increases international cooperation in controlling Convention (IPPC) pests and diseases of plants and plant products and in preventing their production and spread across national boundaries. International Tropical Timber This is the only binding international agreement specifically covering Agreement 2006 (ITTA) forests. The ITTA regulates the work of the International Tropical Timber Organization and covers only tropical timber-producing forests. Protocol for Sustainable The protocol on sustainable development of Lake Victoria Basin in Article 3 on Development of Lake Victoria Basin the Scope of Co-operation — Part (d), Article 6 on Protection and Conservation and the Protocol on Environment of the Basin and its Ecosystems as well as Article 20 on Prevention of Pollution and Natural Resources for the EAC from Non-point Sources together with the protocol on Environment and Natural Resources, Article 11, provide for a more basin-wide collaboration in forestry. The Ramsar Convention Protects wetlands. Reducing Emissions From The REDD+ partnerships were initiated to implement the “fast-track Deforestation and Forest funding” pledges made within the context of the so-called Copenhagen Degradation (REDD+ mechanisms) Accord reached among a group of countries at UNFCCC COP-15. REDD+ serves as an interim platform for its partner countries to scale up actions and finance for REDD+ initiatives in developing countries. United Nations Convention to UNCCD combats desertification and mitigates the effects of Combat Desertification (UNCCD) drought in the countries affected through effective action. United Nations Framework UNFCC regulates levels of greenhouse gas concentrations in the Convention on Climate atmosphere, with the intention to prevent climate change from reaching Change (UNFCCC) a level that would impede sustainable economic development. 16 3 NATIONAL BACKGROUND AND DESCRIPTION POLICIES AND LEGAL FRAMEWORKS The NFP mirrors the values and principles of the Constitution and the Vision 2030, among other policies and le g al f ram e wo r ks . BACKGROUND

3.1 — THE CONSTITUTION OF

3.1 THE CONSTITUTION OF KENYA, 2010 Chapter 5 of the Constitution deals with land, the environment and natural resources. Land is categorised into public, community and private land. Article 69(1) emphasises the development and management of the forestry sector through: a) sustainable exploitation, utilisation, management and conservation of the environment and natural resources, as equitable sharing of the accruing benefits; b) achieving and maintaining at least 10% tree cover of the land area; c) protecting and enhancing intellectual property and indig- enous knowledge; d) public participation in the management, protection and conservation of the environment; e) protecting genetic resources and biological diversity; f) establishing systems of environmental impact assess- ment, audit and monitoring; g) eliminating processes and activities that are likely to en- danger the environment; and, h) using the environment and natural resources for the ben- efit of the people of Kenya. The Constitution further provides for concessions to natural resources including forest concessions in Article 71(1), subject to ratification by parliament. Article 174 provides for the objects of devolving national government functions while schedule 4 provides for the devolution of forestry functions. 18 BACKGROUND

3.2 — POLICIES AND

3.2 POLICIES AND LEGISLATION The key national policies and legislation that influence forest management, related land uses and other aspects ensuring sustainable forest management are listed in Ta- ble 3.1. During the last 10 years, integration of good governance, transparency and accountabil- ity as well as equity and poverty reduction in the forestry sector has been introduced and is gradually making an impact. Changes such as granting of some rights to forest conservancy committees (FCCs) and community forest associations (CFAs) are achieve- ments of the new institutional arrangements. In the Forest Conservation and Manage- ment Bill (2015), good governance, access to public information, devolution, equitable sharing of benefits and provision of incentives are key principles of the Bill yet to be enacted. The Bill provides for management of private forests and incentives to increase forest and tree cover. Additionally, it provides for collaboration among relevant minis- tries and stakeholders to realise the constitutional target of a national tree cover of at least 10%. Table 3.1. Key policies and legislation affecting the forestry sector. Draft National Forest Policy, 2015 • Introduces a number of initiatives to improve and develop the forest resource base through integration of good governance, transparency, and accountability, equity and poverty reduction in the forestry sector. National Wildlife Conservation and Management Policy, 2012 • Supports the conservation and rehabilitation of forests and other water catchment areas that are significant wildlife habitats. • Promotes the establishment of transboundary and/or transfrontier wildlife conservation areas. Draft National Energy Policy, 2014 • Stresses collaboration with other relevant ministries and stakeholders to grow and sustain tree cover to above 10%. • Proposes incentives for private sector participation in generation, exploitation, production, distribution, supply and use of biomass energy. National Food and Nutrition Security Policy, 2011 • Emphasises strategies aimed at enabling local communities to effectively adapt to climate change and reduce impact on food and nutrition security. • Promotes rainwater harvesting for irrigation and livestock use, more so in the ASALs. National Policy on Gender and Development, 2000 • Focuses on nine themes: the economy and agriculture, poverty and sustainable livelihoods, law and justice, political participation, education and training, health and population, environmental sustainability, peace, security and conflict resolution as well as media and information technology. Forests Act, 2005 • Brought major positive changes in the forestry sector and institutional reforms and a focus on improved governance; created the Kenya Forest Service as a semi-autonomous government agency and devolved levels of forest governance like the forest conservancy committees and community forest associations, thus recognising the role of forest-adjacent communities and giving them some user rights provisions. It also allowed joint forest management and forest concessions. Forest Conservation and Management Bill (a Bill that seeks to repeal the Forests Act, 2005 once enacted) • The Bill proposes legal provisions applicable to management of all forests on public, community and private land. Good governance, access to public information, devolution, equitable sharing of benefits and provision of incentives are key principles of the Bill. Continues > National Forest Programme 2016–2030 19 < Table 3.1, continued Environmental Management and Coordination (Amendment) Act, 2015 • A framework law for the management and coordination of environment matters that has a bearing on forestry sector. Provides for protection of forests and environmental impact assessments of forestry-related developments. The Energy Act, Cap 314, 2006 • A framework law for energy development, management and efficient use of renewable energy technologies, including biomass, bio-ethanol, charcoal, fuelwood, biogas and municipal waste, among others. County Government Act, 2012 (revised 2013) • Ensures environmental sustainability, strategic environmental impact assessments and protects and develops natural resources. • Protects and promotes interests and rights of minorities, marginalised groups and communities and their access to relevant information. • Requires meaningful engagement of citizens in the planning processes. Wildlife Conservation and Management Act, 2013 • Improves protection, conservation, sustainable use and management of the country’s wildlife resources; the conservation of forests within national parks, national reserves and sanctuaries, and of all wild animals occurring in all forests. • Promotes effective public participation and sustainable utilisation. Agriculture, Fisheries and Food Authority Act, 2013 • Implements the Crops and Fisheries Acts which promote soil and water conservation and prevent the destruction of vegetation; requiring, regulating or controlling the afforestation or re-afforestation of land, among other things. The Land Act, 2012 • Consolidates and rationalises land laws in Kenya and provides for the sustainable administration and management of land and land-based resources. • Provides for the jurisdiction of the Land and Environment Court and on public land, identifies forest land as one of the public lands that cannot be allocated to anyone. The Water Act, 2002 • Provides for the management, conservation use and control of water resources. Establishes water resource management authorities with powers to develop principles, guidelines and procedures for allocating water resources in addition to protecting and managing water catchment areas. Provides for establishment of water resource users’ associations whose mandate includes protecting water catchment areas. National Museums and Heritage Act, 2006 • Provides for legal protection of heritage sites and establishes protected area designations including national monuments. As a consequence of this Act, to date 41 Kaya sites are exclusively gazetted as national monuments (sacred groves). Kaya forests are explicitly mentioned in the Act as important heritage areas. Public-Private Partnerships (PPP) Act, 2013 • Provides for the participation of the private sector in the financing, construction, development, operation or maintenance of infrastructure or development projects of the government through concession or other contractual arrangements. • Defines the structure, parties’ mandates, forms of intervention and processes for establishing PPPs in Kenya. Natural Resources Benefit Sharing Bill, 2015 • Proposes the establishment of natural resources benefit-sharing arrangements between the national and county governments and local communities. The Timber Act, Cap. 386, 1972 • Provides for the control of the sale and export of timber by means of grading, inspection, and marking. It also provides for control of timber in transit. Mining Act, 2015 • Proposes prospecting, mining, processing, treatment, transport and dealings in minerals, of which some activities may impact forests. Community Land Bill, 2015 • Proposes the recognition, protection and registration of community land rights; management and administration of community land to provide for the role of county governments in relation to unregistered community land and for connected purposes. Intergovernmental Relations (Amendment) Bill, 2014 • Proposes cooperation between the two tiers of government (national and county) for continued prosperity of the nation. 20 BACKGROUND

3.3 — ASSOCIATED STRATEGIES

3.3 ASSOCIATED STRATEGIES AND PLANS Kenya Vision 2030: The objective of Vision 2030 is to transform Kenya into a middle-in- come country providing a high quality of life to all its citizens by 2030. Vision 2030 is implemented in successive five-year medium-term plans. It places the environmental Minimum sector in the social pillar and emphasises the need to conserve natural resources to support economic growth. In forestry, the goal is to increase area under forest and sus- 10% tree tainably manage natural forest resources for environmental protection and enhanced cover by economic growth. 2030 National Climate Change Response Strategy (2010): This strategy emphasises the for- estry sector’s significant role in climate change mitigation and adaptation. National Climate Change Action Plan (2013–2017): The National Climate Change Action Increased forest Plan (2013–2017) presents actions aimed at both adaptation and mitigation of the ad- cover is one of the verse effects of climate change. The Action Plan includes several major actions related to forests and forestry. A draft Climate Change Policy has also been developed. targets of the Kenya Kenya Green Economy Strategy and Implementation Plan (2015): The strategy ad- Vision 2030. dresses national development goals for “rapid economic growth in a stable macro-eco- nomic environment” and aims to contribute to the sustainable achievement of the goals of Vision 2030. Central to the strategy are policy options that enhance and exploit synergies between economic growth, environmental sustainability and social equity. The strategy outlines the policy options for a green economy in the Kenyan context and is cognizant of the several ongoing green economy initiatives, policies and activities. The conditions provided through reforestation and forest services for sustainable agri- culture, water and energy are highlighted as central elements for sustainable economic and social development. Institutional Strategies Addressing Forest Management: The NFP development pro- cess referred to some key institutional strategies including: • Strategic plan for the MENR&RDA 2014–2017 • KFS Strategic Plan 2014–2017 • KEFRI Strategic Plan 2014–2018 • Master Plan for Conservation and Sustainable Management of the Water Catchment Areas in Kenya 2012 • Kenya Water Towers Strategic Plan 2016–2020 • the Kenya Water Strategic Plan and • the draft National Strategy for Increasing Forest Cover 2015–2020. All the strategies if properly implemented will mobilise resources and will enhance sustainable forest management and increase forest cover in the country. National Forest Programme 2016–2030 21 4 KENYA’S BACKGROUND AND DESCRIPTION FORESTS This chapter addresses t h e c h arac t e r is t ic s an d c l a s s i f i c a t i o n o f K e n y a’s forests. BACKGROUND

4.1 — CHARACTERISTICS OF

4.1 CHARACTERISTICS OF KENYA'S FORESTS According to the last inventory undertaken in 2010 (KFS, 2013a), forests in Kenya occupy 6.99% of the land area. These forests are categorised as Montane, Western rainforest, Bamboo, Afro-montane undifferentiated forest, Coastal and Dryland forests. The mon- tane forest and the coastal forest regions are the most forested with 18% and 10% forest cover, respectively. Natural forests in Kenya are made up of montane forests, which occupy about 2% of the total land area (1.14 million hectares). A considerable area of 2.13 million hectares consists of bushland and mangroves. Public and private plantations constitute 220,000 hectares (FAO, 2015d). The distribution of forests in 2010 is presented in Figure 4.1. Kenya’s forests covered approxi- mately 7% (4.4 million hectares) of the total land area in 2010. The forest cover has been increasing by 0.1% annually since 2000. Figure 4.1. Distribution of forests in 2010. (KFS) National Forest Programme 2016–2030 23 Table 4.1. Land-use area changes in Kenya (‘000 ha), 1990–2015. Land use 1990 2000 2005 2010 2015 Forest land 4,724 3,557 4,047 4,230 4,413 Crop land 9,258 9,661 9,868 10,072 10,276 Grassland 41,522 41,654 41,496 41,08 40,664 Settlement 57 87 109 126 143 Other lands 1,004 1,574 1,035 1,044 1,053 Wetlands 1,472 1,504 1,482 1,485 1,488 Total area 58,037 58,037 58,037 58,037 58,037 Source: FAO, 2015d Analysis of change in forest cover over the last 25 years revealed improved afforesta- tion activities. Forest land has decreased by 311,000 ha while crop land increased by 1,018,000 ha between 1990 and 2015. Between 1990 and 2000, Kenya lost approximately 1.2 million ha of forest land, equivalent to 25% of forest cover. However, there is a re- markable increase in forest cover from 6.01% in 2000 to the predicted 7.46% in 2015. This is equivalent to an annual increase of 0.1% (Table 4.2). Difference in total forest area for 2010 in Table 4.1 and Table 4.2 is attributed to different data sources. Table 4.2. Analysis of forest cover change, 1990–2015. Year Forest area Percent forest Annual change Annualised (‘000 ha) cover (‘000 ha) change (%) 1990 4,724 7.98 2000 3,557 6.01 –1,167 –24.7 2005 4,047 6.84 490 13.8 2010 4,136 6.99 89,4 2.2 2015 (projected) 4,413 7.46 276,6 6.7 Source: KFS, 2013b Most (77%) of the forest land in Kenya is under community and private ownership while 23% is public. Private plantations cover 47% of the total forest plantation area, which is almost equal to the area of stocked plantations under public management (53%) (Table 4.3, Figure 4.2). Table 4.3. Comparison of public and community/private forests in Kenya. Natural forests Plantations, Total (ha) stocked (ha) (ha) Gazetted (GoK) 842,100 98,323 940,423 Community/private 3,103,008 88,393 3,191,401 Total 3,945,108 186,716 4,131,824 Source: KFS, 2013b Natual forests Plantations Total 3,945,108 Gazetted hectares (GoK) natural forests Community/ Gazetted 23% private (GoK) forest forest plantatations Community/ plantations 53% private 47% owned natural forests 77% Total 186,716 hectares Figure 4.2. Public and community/private natural forests and plantations, % of total forest areas. 24

4.3 — FOREST TYPES

4.3 FOREST TYPES BACKGROUND The description and classification of forests vary and efforts have been made to har- monise them. Peltorinne (2004) classified Kenya’s forests into six main geographical formations: 1. The high mountains and high ranges: Elgon, Kenya, Aberdares, Cherangani and Mau 2. Western plateau: Kabarnet, Kakamega, Nandi and Trans-Mara 3. Northern mountains: Ndotos, Mathews, Leroghi, Kulal and Marsabit 4. Coastal forests: Arabuko-Sokoke, Tana, Kayas, coral rag and mangrove forests 5. Southern hills: Taita Hills, Kasigau, Shimba Hills, Chyulu Hills and Nguruman 6. Riverine forests: Tana and tributaries, Ewaso-Ngiro, Kerio, Turkwell and Galana. Before this, White (1983) had categorised Kenya’s forest types into four major groups. This classification was later modified by Van Breugel et al. (2011) (Table 4.4). Guinea-Congolian (western) rainforest: The Guinea-Congolian rainforest is distributed from the coastal areas of West Africa to the Congo Basin. The Kakamega and Nandi forest reserves represent this type of forest (Figure 4.3). The dominant species are Cro- ton megalocarpus, Bosqueia phoberos, Celtis durandii, Aningeria altissima, Funtumia elastica, Antiaris toxicaria, Craibia brownii and Olea capensis. Afro-montane forest: The Afro-montane forest type is associated with highland for- ests in Africa that spread from Guinea and Liberia in the west to Ethiopia in the east and the Drakensberg Mountains in the south. There is a close relationship between plant species in these forests, although the region is sub-divided into several afro-mon- tane systems (White, 1978). In Kenya afro-montane forest covers Mt. Kenya, the Aber- dares, Karura, Mau Forest Complex, the Cherangani Hills, Mt Elgon, Mt Nyiro, Mt Kulal, Mathews Range and Mt Marsabit forest ecosystems. These forests form the catchments of the main rivers of the “water towers” in Kenya. These forest types are considered within two major sub-types: the mixed indigenous natural forest and bamboo dominat- ed forest (Figures 4.5 and 4.6). Table 4.4. Forest types and corresponding areas. Forest type Forest sub-types Approximate % of total area (ha) forest area Guinea-Congolian rain Natural forest (mixed indigenous) 144,615 3.5 forest/Western plateau Afro-montane forest Natural forest (mixed indigenous) 1,359,860 32.9 Bamboo 85,693 2.1 Coastal forest Natural forest (mixed indigenous trees) 295,871 7.2 Mangroves 48,522 1.2 Dryland forests Natural forest (mixed indigenous trees) 1,875,316 45.4 Riverine forest 135,231 3.3 Stocked forest planta- Indigenous and exotic trees 186,716 4.5 tions /planted forests Source: KFS 2013, based on the forest cover mapping of 2013 using 2010 satellite imageries. National Forest Programme 2016–2030 25 36°0'0"E 40°0'0"E Afro-montane natural forest sub-type: ± Afro-montane natural forest vegetation ! ! ! DISTRIBUTION OF KENYAN FOREST TYPES varies with altitude and rainfall. ! ! ! ! ! ! The dominant tree species in this forest ! ! ! ! ! ! ! sub-type include Syzygium guineense, ! ! ! ! ! ! ! Macaranga capensis, Neoboutonia macro- ! ! ! calyx, Xymalos monospora, Tabernaemon- ! ! ! tana stapfiana, Juniperous procera, Podo- 2°0'0"N 2°0'0"N ! carpus spp., Ocotea usambarensis, Olea ! ! capensis and Vitex keniensis. ! ! ! ! ! ! On the lower parts, the dominant species are Olea europea, Juniperous procera, ! ! ! ! Mytenus spp., Teclea simplicifolia and Po- ! ! docarpus falcatus. These forest types are ! ! found in high-potential areas and are un- ! der constant pressure of being convert- 2°0'0"S 2°0'0"S ed to agricultural land use. They are rich ! Kenya Boundary ! lake in biodiversity and are good habitats for ! ForestTypes wildlife. The forests are also adjacent to ! Bamboo ! Mangrove Natural Forest ! ! high population density areas and there- fore prone to encroachment for wood and ! Plantation Forest non-wood forest products. ! 0 100 200 ! 400 Kilometers Bamboo forest sub-type: These for- ! 36°0'0"E 40°0'0"E est sub-types are found in high altitude Figure 4.3. Distribution of forest types in Kenya. areas in montane forest regions, domi- Figure 4.4. Kakamega Forest. Figure 4.5. Meru Forest, Mt. Kenya. 26 nated by continuous stands of highland bamboo (Yushania alpina). Coastal forest: The coastal forest types (Figure 4.7) are found in a narrow coast- al strip running inland approximately 30 km from the coastline and stretch from southern Somalia to northern Mozam- bique. The climate of these eco-regions is tropical with average temperatures above 25˚C, with little variation in day length and generally high humidity. Rain- fall comes in distinct seasons. Many plant species are endemic and are confined to Figure 4.6. Bamboo forest. the remaining patches of natural forests. Coastal natural forest sub-forest type: The coastal terrestrial forests are home to over 90 threatened species of plants and animals (Matiru, 1999). Most coastal forests (80.3%) are under various forms of protection. Mangrove sub-forest type: Mangroves form a transitional zone between the coastal marine and coastal forest eco- regions. Mangroves in Kenya display a horizontal distribution of species or zo- nation. This is greatly influenced by lev- els of inundation, geomorphology and sa- linity. A typical zonation of the mangrove Figure 4.7. Shimba Hills, coastal natural forests. forest starts with Sonneratia alba (Mlila- na) on the seaward margin, followed by large Avicennia and Rhizophora mucro- nata. In the creeks, Rhizophora–Avicennia mix is the dominant species composition (Figure 4.8). Dryland forest type: The dry zone for- ests are found in the dry areas of Ki- tui, Machakos, Taita Hills and Northern Kenya hills among other hilltops. It also includes dense savanna acacia forests mainly found in Laikipia, Baringo and Samburu counties. Patches of dry for- ests are also found in the Lake Victoria Figure 4.8. Mangrove forest. region. Dryland forests are composed of trees measuring 5–15 m high with dwarf understorey. These forests occur in low- lying sandy alluvial soils. Figures 4.9 and 4.10 show dry sub-forest type and riverine sub-forest type. Dry sub-forest type: The dry forests on the hilltops of Samburu and Marsabit are dominated by Podocarpus, Croto, and Juniperus species. The dry savanna forests in Samburu, Laikipia and Baringo are mainly dominated by Acacia spp. The upland woodlands provide habitats for species such as Combretum molle, Aca- cia etbaica, A. nilotica, A. seyal, A. tortilis, Figure 4.9. Dryland forest. and A. nubica. National Forest Programme 2016–2030 27 Riverine sub-forest type: The riverine forests are found in floodplains covered by alluvial and fertile deposits. They form narrow strips of gallery forest creating ecologically diverse ecotones. Character- istic upper canopy trees include Acacia elatior, Populus ilicifolia, Garcinia living- stonei, Mimusops fruticose and Acacia nilotica. Planted forest: Large-scale tree plant- ing was started at the beginning of the 20th century by the colonial government to provide a sustainable supply of fuel- wood for steam locomotives. Exotic tree species were preferred as they are fast growing compared with indigenous spe- Figure 4.10. Riverine forest. cies. Commercial plantations: These are sys- tematically planted areas with both ex- otic and indigenous tree species. Plan- tations are either under State, private or community tenure. The total area under plantation is approximately 220,000 ha. The main tree species are Cupressus lusi- tanica, Pinus radiata, Pinus patula, Eu- calyptus spp., Vitex keniensis, Polyscias kikuyuensis and Juniperus procera. Most plantations are found in the highland areas between altitude 1,500 to 2,500 m and with annual rainfall of between 1,000 to 1,750 mm. Figures 4.11 and 4.12 show commercial plantation and on-farm- forestry. Figure 4.11. A commercial plantation. On-farm forestry: The 1970s and 1980s were periods of intensive on-farm tree planting promoted by various organisa- tions. In the early 1990s, agroforestry was promoted targeting multipurpose trees and shrubs. Grevillea robusta was widely adopted in Central and the eastern parts of the country, and eucalyptus in western Kenya. Cypress was also commonly plant- ed in the sub-humid areas. Figure 4.12. Agroforestry in Chuka, Meru County. 28 5 THE NEXUS— A N A LY S I S PEOPLE, TREES AND FORESTS: KEY CHALLENGES Fo r e s t s a r e a t t h e center of environmental and socio-economic development. A N A LY S I S

5.1 — DRIVERS OF

5.1 DRIVERS OF DEFORESTATION AND DEGRADATION The development of forest policies and strategies requires a clear understanding of the drivers of deforestation and degradation. Most people live in high and medium-potential agro-ecological zones suitable for ag- riculture and most forests with closed canopies are also located here. The causes of deforestation and forest degradation are multiple, complex and vary over geographical and social contexts. However, the general trend is that the major drivers are related to agricultural expansion and urbanisation (Kissinger, 2012). This is also true for Kenya. Drivers of deforestation vary in magnitude and forest type. They also vary in environ- mental, social and economic contexts. Mather (1992) introduced the Forest Tran- sition concept (Figure 5.1) to explain the transition from decreasing to expanding forest cover that has taken place in many developed countries. The forest transition model, through a number of transition- al phases, identifies characteristic hu- man-induced changes in forest cover and dynamics over time at the national scale. The model has subsequently been tested and proved valid for other countries. Kenya is now in the late transition (end of phase 3), a point of inadequate forest cover, where the needs and focus shift to- ward options for reforestation. Agricultural expan- sion and urbanisation Phase 1 Phase 2 Phase 3 Phase 4 are the main drivers Pre-transition Early transition Late transition Post transition 100 of degradation and Forest cover (%) deforestation. Time 0 > R efor estation 0 Defor estation –0,25 Forest area change (%) Figure 5.1 Forest transition model. (Source: Hosonuma et al., 2012). 30 Table 5.1. Drivers of deforestation. Category Direct drivers Indirect drivers Governance • Inadequate application • Inadequate integration of the forest of basic silvicultural and sector with other stakeholders. ecological principles for • Unclear forest responsibilities and weak forest management. conflict-management capacity. • “Tragedy of the commons” • Weak forest governance and institutions. resulting in conflicts over natural resources. • Corruption, illegal logging, weak enforcement. • Inadequate benefit sharing from forest resources. • Diverse perceptions of importance of forests. • Communal land tenure systems and their application. • Lack of private ownership, unclear tenure and access to forest resources. Policy • Overgrazing and • More focus shifted to water towers, paying inadequate regulation of less attention to dryland woodlands, including grazing in forest reserves the coastal and riparian forests. and community lands. Economic drivers • Clearing of forest • Demand is higher than supply. for agriculture. • Heavy bureaucracy and poor efficiency • Degradation of forest. obstructing competitiveness. • Charcoal and fuel wood • Limited knowledge of tree growing (and from unsustainable necessary silviculture) as an enterprise. production. • Poverty, high prices for agriculture products, • Infrastructure and subsidised fertiliser, tax exemption for urbanisation. certain agricultural machinery resulting • Conversion of communal in unhealthy competition for land. forest to agriculture. • Fixed timber prices at low levels. • Mining within forest areas. • Rapidly increasing population has • Illegal logging. heightened the demand for land. • Few or no livelihood options have created overdependence on agriculture and mounting pressure on forest lands. Technology • Poor uptake of new • Uncertain availability of timber and drivers technologies. wood for processing enterprises. • Poor awareness of • Low investment in wood processing deforestation impacts. resulting in ineffective processing. • Poor knowledge of tree planting. Cultural and • Unsustainable utilisation, • Traditional farming methods in a context of environmental including overgrazing. increased population and overstocking of animals. drivers • Conflict at multiple levels. • Fires are deliberate, accidental, poorly managed and they destroy forests. • Wildlife damage impacting regeneration. National Forest Programme 2016–2030 31 A N A LY S I S

5.2 — THE DYNAMICS

5.2 THE DYNAMICS OF POPULATION ON LAND USE The population of Kenya is currently estimated at 48 million and with a population growth rate of 2.8% (Weismann, 2014) is projected to rise to 66.3 million by 2030 (WPR, 2015) . The increased population puts pressure on natural resources, a major challenge for this country. Kenya’s rural population stood at 8 million people in 1963 and produced agri- cultural outputs for their own consumption, for export and to feed less than a million urban residents. In 2015, 35 million rural residents produced agricultural outputs for their consumption, for export and to feed 12 million urban residents. It is projected that by 2050 there will be 54 million rural res- idents expected to produce agricultural outputs for their own consumption, for export and also to feed 43 million urban residents (Table 5.2). The implication of rural pop- ulations feeding increasing urban populations will be pressure to convert forest land to agricultural land. The wealth gap between the rich and poor is huge in most urban areas. The level of dependency on wood and forest products also varies, with the most vulnerable households being those in the slums. For them, life is a daily struggle and the high cost of charcoal is one factor that directly im- pacts their lives. In addition, institutions like hospitals and ho- tels are big consumers of firewood and thus major stakeholders. Table 5.2. Ratio of rural to urban residents and urban population (in millions). Year Rural to urban ratio Urban population (million) 1963 8 to 1 Less than 1 2015 3 to 1 12 2050 1.25 to 1 43 Source: Owuor, 2011 32 A N A LY S I S

5.3 — FORESTRY’S POTENTIAL

5.3 FORESTRY’S POTENTIAL TO ADDRESS POVERTY AND YOUTH UNEMPLOYMENT About 50.1% of Kenya’s population is under 18 years of age, meaning that half of the population has to raise and educate the other half (KNBS, 2010). Unemployment, especially for youth, is a growing problem, with 80% of the unemployed being between 15 and 34 years of age. The reason is believed to be a mismatch between the skills and education of job seekers and the staff skills and education that employers seek. Training of mid-level technicians and artisans is inadequate (AfDB, 2014). Assuming that only the private sector can create sustainable job growth within forestry, thus performing a key role in creating employment, a favourable environment for private forest investments must be established for the available workforce to benefit, and to avoid social problems. Trees and forests form the basis of livelihoods, especially in areas with high population density and youth unemployment. The forestry sector has both a potential and an obligation to contribute to the creation of job opportunities for youth. National Forest Programme 2016–2030 33 A N A LY S I S

5.4 — DEMAND AND SUPPLY OF

5.4 DEMAND AND SUPPLY OF WOOD PRODUCTS In 2013, the MEWNR studied the current and projected demand for the main wood prod- ucts. The study also covered current and projected potential supply, and, hence, current and future surpluses and deficits. The demand for wood and wood products in Kenya to 2032 was forecasted using the Global Forest Product Model — an economic model for global production, use and trade of forest products (Buongiorno et al., 2003). Supply of wood products has been forecast- ed taking into consideration economic growth, climate change, policies and manage- ment guidelines, forest yield and forest area, among others. Table 5.3 presents the national projected demand for firewood, charcoal, timber and poles for 2011/12 and 2031/32. Table 5.3. Projected demand (million m³), supply and projected surplus (+) or deficit (–) of wood products. Firewood Charcoal Timber Poles Total DEMAND 2011/12 18.7 16.3 5.3 1.4 41.7 2031/32 21.7 19.2 7.6 2.2 50.7 % change 16 18 43 58 22 SUPPLY 2011/12 13.6 7.4 7.4 3.0 31.4 2031/32 14.9 8.1 9.0 3.7 35.7 % change 10 9 22 23 14 DEFICIT 2011/12 –5.0 –9.0 +2.1 +1.6 –10.3 2031/32 –6.8 –11.1 +1.4 +1.5 –15.0 Summarised from MEWNR, 2013b Based on the study (Ref Table 5.3), it can be deduced that the potential supply is insuf- ficient to meet the demand for firewood and charcoal both now and in the forecasted future. • In 2012, the demand was 41.7 million cubic metres and the corresponding supply was 31.4 million cubic metres resulting in a deficit of 10.3 million cubic metres. • In 2032, the demand is projected to rise to 50.7 million cubic metres whereas the corresponding supply will rise to 35.7 million cubic metres, causing a deficit of 15.0 million cubic metres. According to a study by GATSBY Charitable Fund (2014), the current wood deficit in the country was estimated at 12 million cubic metres and predicted to rise to as high as 34.4 million cubic metres by 2030. MEWNR’s (2013b) study also examined wood sources (Table 5.4). The study demon- strated that the bulk of wood products comes from land owned by private individuals. Communal lands, mainly in the ASALs, are also important sources of wood. These two categories combined provide over 90% of the total wood supplies and so are important areas of focus in the NFP. 34 Emerging supply challenges It is clear from the study by the ministry (MEWNR, 2013b) that meeting the demand for forest products in the future will be a challenge. Projected deficits have to be addressed through sustainable resource management. Table 5.4. Estimates of wood supply (million m³) potential from different Another challenge, but also an opportunity, sources. is derived from observing that the bulk of supplies, especially of firewood and char- Firewood Charcoal Timber Poles Total coal, come from lands owned and used by Natural forests 0.5 0.3 - - 0.8 farmers and pastoralists. A major task for in public land the government is to ensure a conducive Forest plantations 0.3 0.2 1.3 0.2 2.0 and enabling environment—a prerequisite on public land for farmers and pastoralists to realise the Communal and 1.9 1.0 1.3 0.2 4.9 production potential that they command. private natural forests Weak market structure and organisation Communal and 0.5 0.3 0.4 0.6 1.8 have so far limited an open and efficient private plantations market. Inadequate access to credible Trees on farmland 10.3 5.6 4.4 1.5 21.8 wood valuation services and market infor- Total 13.5 7.4 7.4 3.0 31.3 mation by small-scale producers has also contributed to the distorted economic val- uation of timber. Timber middlemen have Table 5.5. Estimates (%) of wood supply potential from different sources. exploited the ill-informed and desperate small-scale wood producers through unfair Source Firewood Charcoal Timber Poles Total pricing. Public forests 6 7 18 7 9 Additionally, projected changes due to cli- Communal and 18 18 23 43 21 mate change may have impacts on forest private forests growth increments, site indices and other Trees on farmland 76 75 59 50 70 factors influencing supply. Summarised from MEWNR, 2013b. Illegal logging and timber trade The increasing illegal timber trade contributes to deforestation and loss of biodiversity. Illegal timber trade revenues worth millions of dollars are lost every year. The European Union adopted the Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT) in 2003. The ultimate aim of the FLEGT is to support efforts by tim- ber-producing countries to combat illegal logging by preventing illegal timber from entering the EU market through bilateral trade agreements called Voluntary Partnership Agreements (VPAs). The aim of the FLEGT is to improve governance and reduce illegal logging by strengthening legal forest management, improving governance and encour- aging trade in legally sourced timber (EU, 2014). Kenya is participating in FLEGT dialogues in Eastern Africa, and in September 2015, together with Tanzania, Mozambique, Uganda and Madagascar, an agreement on infor- mation sharing was signed. According to a study done in Kenya in 2014 on ‘Forest governance and timber trade flows within, to and from eastern and southern African countries’, the country is a net import- er of, especially, sawn timber, panel products, paper, furniture and transmission poles. In 2011 these imports were worth USD 50 million whereas timber exports were limited. Kenya is exporting such small quantities of wood-based products to the EU that scope is limited for the EU to enter into VPA negotiations with her (GoK, 2014). National Forest Programme 2016–2030 35 A N A LY S I S

5.5 — FOREST VALUE CHAINS

5.5 FOREST VALUE CHAINS An efficient value chain is characterised by minimum transaction costs, i.e. minimal costs are added to what the producers earn along the chain until the produce reaches the end consumer. Value chains can be either long and complex or very short and sim- ple. For example, when firewood is traded, the value chain is typically short. Opportuni- ties exist for adding value to forest products at different levels. Pro-poor value chain development focuses on strengthening the livelihoods of the poor, who may be farmers and labourers at one end or poor consumers on the other end. There may also be other poor and disadvantaged stakeholders among traders, proces- sors and transporters. Efficient value chains of products produced or used by poor peo- ple are therefore of particular importance. Some key value chains are described in the following sections.

5.5.1 — Wood products value chains

5.5.1 Wood products value chains Timber value chain The timber value chain is characterised by inefficiency in processing and high trans- action costs that can be attributed to policy and legal constraints, infra- structure, technology and transport costs. Due to these constraints, traders seek the services of vari- ous players along the market value chains, thereby increasing costs on the operations of timber trade. The high transaction costs can be reduced with a favourable policy/ legal environment, better technology deployment and improved road infra- structure. Plywood and veneer Manufacture of plywood has been the domain of large industries in the country but this is changing and medium size industries have started manufacturing this product. The country today has six plywood mills which supply mainly the domestic market with a small quantity being exported to neighbouring countries. The country imports decorative veneer and plywood from the Far East. Production of veneer from small-diameter eucalyptus and pine logs has started. The process, which uses Chinese and Indian technology (spindle-less lathe), will allow for commercial utilisation of thinnings from plantations and farmers’ woodlots. Veneer is exported to China and India while some is used in the country to manufacture plywood. A large proportion of the plywood and veneer is used to manufacture blockboards and flush doors for the construction industry. These two products consume a sizeable 36 volume of low-grade timber and efforts are being made to add value to low-quality sawn wood. With many medium sawmills investing in production of blockboard and flushdoors, supply of these products to the local market has increased significantly and prices have stabilised. Chipboard, fibre-board and MDF These are reconstituted boards made from wood waste from other manufacturing pro- cesses and debris from logging operations. Kenya has two chipboard factories, one fibre-board mill and one new MDF factory. Production from these industries is mainly for the domestic market with surplus being exported to countries in the region. Treated electricity distribution poles Demand for electricity distribution poles mainly from Eucalyptus species has been on the rise for the last decade. This demand has been driven by the need for poles to build new power lines and to replace damaged poles. Rural electrification has also contributed to the increased demand for treated poles. Kenya Power Ltd and the Rural Electrification Agency need about a million poles every year. A large portion of this demand is met from Eucalyptus grown on farmlands and private forests, but some poles are also imported from other countries such as South Africa. The country does not produce enough poles to meet domestic demand. Introduction of concrete poles in the market will affect the treated poles business and discussions should be held with Kenya Power Ltd and the Rural Electrification Agency to agree on delineation of areas where wooden poles will be used and areas more suited for concrete poles. The poles business supports rural livelihoods of small-scale eucalyptus planters and, when used under the right conditions, conserves the environ- ment and mitigates against climate change. Charcoal value chain About 90% of rural households use firewood for cooking while 80% of urban households depend on charcoal as the primary source of fuel for cooking. Estimates indi- cate the country has about 200,000 charcoal producers and 500,000 people are involved in the charcoal trade (Mutimba and Barasa, 2005). Nonetheless, charcoal production technologies are inefficient resulting in massive wastages during wood conversion to charcoal. About half of the charcoal in Kenya comes from the ASAL areas. Many tree species in the drylands yield high-quality and preferred charcoal. Much of the char- coal production and transportation is however deemed il- legal yet procedures to buy, use and sell charcoal are legal. The partly illegal status of charcoal has driven production un- derground, contributing to corruption and inefficient production, marginalisation of producers and little or no investment in the busi- ness. The charcoal industry is nevertheless a significant source of income and an important livelihood for many poor Kenyans. The trade is therefore a very im- portant economic activity in the ASAL areas. The producers value, before transport and other transaction costs, can be estimated at about 2/7 of the market value, i.e. KShs 39 billion for the country (MENR&RDA, 2015). An economic analysis of the charcoal value chain by Miti Mingi Maisha Bora (MMMB) found that profits were disproportionately shared and in favour of retailers and trans- porters, with the producers getting the least margins. This was partly due to weak or- ganisational structures, ineffective implementation of charcoal laws and policies, plus corruption along the chain (KFS-MMMB, 2014). National Forest Programme 2016–2030 37 Inadequacies along the value chain and increasing scarcity in many areas have caused charcoal prices to escalate. This development has contributed to poverty among urban residents and to fuel-switching from charcoal to fossil fuels, which is adding a burden to the national economy. Fuelwood There is high demand for fuelwood for domestic, institutional and industri- al use especially in tea and tobac- co production, vegetable oil and other agricultural manufacturing processes. Most of the fuel- wood is currently unsustain- ably sourced, resulting in de- forestation and degradation of forests and woodlands. The value chain is underdevel- oped. Establishment of energy plantations of suitable species to meet this demand needs to be prioritised as using fossil oil is not only costly but has nega- tive environmental impacts. These plantations if strategically positioned would be a source of charcoal for urban dwellers and firewood for rural communities.

5.5.2 — Non-wood forest products (NWFPs) value chains

5.5.2 Non-wood forest products (NWFPs) value chains Kenyan forests and woodlands produce large varieties of non-wood forest products like gums and resins, medicinal and aromatic plants, tannins and dyeing materials, nuts, berries, honey, wax, fodder, bush meat, fibre, among others. Several of these are subsistence products providing nutrition, critical in situations of drought and famine. Traditional medicines, which depend on medicinal plants, are often the only affordable alternative available to most rural and urban populations. NWFPs play important roles in Kenya’s economy, generating about USD 40 million annu- ally (FAO, 2015b). These figures are not included in the national economic statistics and therefore such forest income is unaccounted in the GDP computation. Nevertheless, in the international trade in NWFPs, Kenya is a main supplier of Bixa orel- lana, a cultivated exotic plant species, exporting about 1,500 tons annually (FAO, 2012a). Exports of gum arabic collected from Acacia senegal in Kenya are still small relative to the resource potential and compared with exports from the main world market supplier, Sudan. Annual exports of gum are only a few hundred tons, which reached a peak of 460 tons in 1995, compared with about 60,000 tons annually exported from Sudan in recent years. The potential for gum arabic production in Kenya has been estimated at 3,000 tons annually against an average production of 400–500 tons. For resins (myrrh, hagar, frankincense) the potential is estimated at 3,500 tons against an average annual production of around 1,000 tons. Nonetheless, Kenya is one of the major exporters of resins (myrrh and frankincense) in Africa. Export volumes reached a peak of 1,130 tons worth about USD 2.6 million in 2000 (FAO, 2012a; FAO, 2015b). Each NWFP value chain is unique, with specific challenges and opportunities. Produc- tion, processing and marketing often do not capture the potential value of the prod- ucts. Practical strategies to address such issues are not well developed. Development of NWFP value chains across counties and communities (community forestry associa- tion, forest user groups, forest-based small enterprises and associations) will inevitably bring opportunities to develop rural livelihoods. 38 Raw materials for NWFPs are often gathered from publicly owned lands. Tenure systems The annual value for these lands may be more complex and rules of access are not as clear as on private lands. When users fear they may lose access to the forest, they are less likely to invest of non-wood in the resource or monitor and control harvesting. This may cause conflicts between products in Kenya users and may make planning for sustainable management difficult (FAO, 2012a; FAO, 2015b; Sloth, 2009). In past years, some forest-adjacent communities have benefited is estimated as directly from government forests through the participatory forest management (PFM) initiative. USD 40 million. Honey and gums have relatively well-developed value chains, unlike many other NW- FPs such as mushrooms and fruits. Currently, there are draft regulations on gums and resins. Mushrooms are often seasonal and depend on natural growth and regenera- tion, which makes their productivity unpredictable. Seasonality may be an advantage as many NWFPs are available during low agricultural seasons. In this way, their exploita- tion complements farming activities, filling gaps in household incomes (Muller, 2011). Producers of NWFPs are usually rural people and often poor or landless. NWFPs provide income to people with limited alternative employment opportunities and low incomes. Consequently, NWFPs need to be commercialised. Local communities have the traditional skills and knowlege to exploit some of the NW- FPs. However, information on processing and marketing is inadequate. Foresters are typically trained in timber management and less in management of NWFPs. Their pro- duction therefore relies on indigenous knowledge found within communities. Research has generally focused on a few products such as gum arabic that are important on the international market. Many NWFPs have weak links to official marketing systems; they are often sold in infor- mal markets. Information about prices, product flow, processing and marketing options is not well known when compared with major crops or timber. However, the absence of Market analysis and enterprise development for NWFPs in ASALs Market analysis and enterprise development (MA&ED) is an approach that could be applied to support communities and farmers in commercial development of wood and NWFPs production. KFS (with support of MMMB Programme) and KEFRI have conducted pilot work in six ASAL counties (Kwale, Makueni, Mwingi, Garissa, Meru North and Taita Taveta) to develop selected NWFPs and wood value chains such as honey, aloe and charcoal. As a result, 30 enterprise groups have been created and 21 charcoal producers’ associations across the six pilot counties have been strengthened. The applied approach is based on a FAO MA&ED methodology that has been working in developing countries for more than a decade. A cornerstone of the approach is to systematically include and stress linkages among social and environmental concerns alongside technological, commercial and financial aspects of community enterprise development. National Forest Programme 2016–2030 39 formal marketing channels can be an advantage since it is easier for small producers to access informal markets, and regulations are often less stringent than in govern- ment-regulated markets (FAO, 2015b; KAFU, 2000). A major marketing constraint for NWFPs has been the exclusive control of forests rather than a community enterprise and business development approach. However, this con- straint is gradually changing as forests are now more integrated into communities and smallholder livelihoods through PFM/JFM (joint forest management) and management agreements with community forestry associations as well as forest-based micro and small enterprise development. A second constraint to the expansive development of NWFP business is lack of acces- sibility and structure to information on NWFPs as very limited information is available in the public domain. The often low profitability of NWFP-based enterprises can be attributed to the fact that trading is done individually, producers are unorganised and dispersed, and individuals lack the necessary information, marketing and packaging skills and information to gain leverage in the market. Bamboo value chain Bamboo is a fast-growing plant with great potential to conserve the en- vironment and provide products that have many uses. In Kenya, how- ever, the use of bamboo is still minimal and its full potential is yet to be realised. Some bamboo cottage industries have been estab- lished in the recent past in Kenya with Nairobi County having fairly developed enterprises. However, its marketing structure is informal. Bamboos are mostly sourced as raw poles. Processing uses simple technology and if carried out at source, would add value and reduce transport costs. With improved processing technology more value adding can be achieved. The value chain has the potential to develop given the many products that the raw materials can be transformed into. These include among others construction material, tiles, mats, baskets, and food. Development strategies is needed, starting from propagation through product processing to marketing and utilisation including sen- sitisation and capacity building.

5.5.3 — Furniture value chain

5.5.3 Furniture value chain Furniture value chains face wood deficits, inadequancies in furniture design and poor professional cooperation. Formal furniture producers also lack the necessary technol- ogy and skills for quality production at scale. The jua kali producers are fragmented entities with limited range of products. These challenges can be overcome by establishing professional furniture producer as- sociations to improve design and market information. Bringing the jua kali furniture production into the formal sector will also reduce import needs and promote regional trade.

5.5.4 — Wood carving

5.5.4 Wood carving Kenya’s wood carving industry provides monetary income to many carvers. It is estimat- ed that up to 60,000 people are engaged in this activity, which means that over 250,000 people economically depend on the carving industry. Unfortunately, this creates a conservation problem because the trees preferred by these carvers are rapidly disappearing. Shortages are increasing with trees being felled at even more distant localities as nearby supplies are exhausted. There is therefore need to assess wood supply and the demand for carving in order to make the industry 40 sustainable. Incidentally, Dalbergia melanoxylon (Mpingo) is the most valuable tree in Africa, volume for volume. Its hard, heavy, black wood is not only the number one choice of wood carvers, it is also exported to Europe to manufacture clarinets and oboes. This species and others like Brachylaena have been harvested for carving over many decades and are now not easily available. The remaining stocks of major wood-carving tree species need to be assessed including identify- ing fast-growing alternative tree species, and strategies designed to provide a continuous supply of carving timber.

5.5.5 — Non-forest value chains

5.5.5 Non-forest value chains depending on trees and forests The existence of forests and trees is closely interlinked with the success of other sectors like livestock, agriculture, fisheries, water, wildlife, tourism and their value chains. For example, livestock production involves several value chains, notably, for milk products, meat, and hides and skins. Though these may not be regarded as forest value chains per se, their existence to a large extent depend on trees and forests. Trees provide both roughage and high protein fodder for livestock, with compositions that vary from area to area.. The livestock industry in the ASALs, which forms the backbone of the economy there, depends heavily on tree fodder.

5.5.6 — Value addition constraints encountered by small-scale

5.5.6 Value addition constraints encountered by small-scale tree farmers There is a big potential to increase timber production by individual farmers on their farms, but small-scale farmers without having an umbrella organisation have limited possibilities to add value to their tree growing and processing. Individual farmers work- ing on their own have limited access to market and price information, no bargaining power to benefit from economies of scale, high transportation and other costs as well as limited access to recent technologies from forests to markets. With limited sales quantities, there is neither an incentive to go for further processing, such as sawn wood and treated poles production, nor to fully benefit from integrated logging and use of different size logs and residues. UNIQUE’s (2016) study for the Gatsby Charitable Foundation shows small-scale tree farmers have many options along the value chains, but for economies of scale an um- brella organisation is needed to provide better extension services, negotiation powers and inputs availability.

5.5.7 — Medicinal plants

5.5.7 Medicinal plants Medicinal plants offer great potential for commercial exploitation especially where op- tions for income generation are limited. Bio-prospecting for these plants has not been done though it offers immense opportunities and potential if carefully done. To realise this potential, medicinal plants issues need to be included in the harmonised laws and policies, community participation in their conservation and management should be enhanced, and medicinal plants value chains, research, technology development and transfer should be promoted. National Forest Programme 2016–2030 41 A N A LY S I S

5.6 — CHALLENGES FOR

5.6 CHALLENGES FOR PRIVATE SECTOR ENGAGEMENT A supportive business environment is a key factor in engaging the private sector. The challenges associated with private sector engagement are addressed by KEPSA (2013) in the “Kenya National Business Agenda II 2013-2017”. The challenges of engaging the private sector in forestry are discussed in this section. Bureaucracy: In recent years, several improvements in the operating environment of companies (e.g. in licensing, registration, lender and borrower protection, credit infor- mation, transport infrastructure, taxation, regulations, transaction costs, etc.) have been realised. However, further work is needed to enable industries to modernise, diversify and expand in addition to reducing bureaucracy. More improvements are required in the business environment to make it easier for small and medium enterprises (SMEs) locat- ed in rural areas to legalise and formalise their businesses. This is necessary if SMEs are to access credit and other services necessary to modernise, diversify and expand. Infrastructure: Good infrastructure is a key factor in the development of any country. This has been recognised in Kenya’s development blueprint, Vision 2030. Kenya, as a re- e gional economic hub and an entry point to Eastern and Central Africa, requires well-de- veloped infrastructure to take advantage of its location and trade with neighbouring states. The current status of forest infrastructure is not adequate to spur and support development in the sector. The private sector has increasingly become important in the forest sector. Private com- panies have expressed interest in establishing commercial plantations and taking con- cessions in public plantations, as provided for in the Forests Act, 2005 (MEWNR, 2013a). They include sawmilling companies, tea industries, bamboo growers, conservation or- ganisations and tree farmers. Kenyan forests also have potential in this regard, given that an enabling environment is established. Industries constrained by inadequate sup- ICT connectivity is being ply of electricity and the cost of power that is higher than in competing countries. rolled out in the whole The railway system is not running efficiently although efforts are underway to modern- country to make commu- ise the main line from Mombasa to Nairobi, Nakuru and neighbouring countries. Rail- nication and information way connections within the country are in a poor state. An efficient harbour is needed transfer more efficient. to support the export and import of wood products and raw materials necessary for The introduction of manufacturing. Work on decongesting the Mombasa harbour is ongoing and increased e-government makes it efficiency is expected. easier for businesses Shortage of raw materials: The current wood deficit is about 10 million cubic meters, to carry out transac- and small and medium-sized enterprises are operating below capacity (MEWNR, 2013a). tions with government This deficit is due partly to sub-optimal plantation management. Private companies are interested in bridging this deficit through establishing commercial plantations and tak- without having to visit ing concessions in public plantations. To date, no concession arrangements have been government offices. For agreed and regulations governing the same have not been finalised. There is potential example, paying taxes, for concessions given that an enabling environment has been created. renewing and obtain- Farm forestry is the most promising source of future wood supplies. However, efforts ing licences as well as will be needed to improve the quality of products coming from this source as well as vehicle transfers can to diversify species and inculcate best management practices among farmers to meet now be done online. the demand. 42 Licensing duration for forest industries: Forest licences for material harvested in pub- lic forests are currently issued for a period of one year, which is too short to invest in new machinery and equipment and upgrade old mills. A period of up to five years would be considered more appropriate and will help to attract funding from financial institutions. Lack of felling plans for industrial processors is a drawback in planning harvesting operations and developing supporting infrastructure. Forestry information for investors: Investments in forestry will increase substantially if information on the state of forests and opportunities for investment are made avail- able to potential investors. At the moment such information is not available in a form that can be used by investors. Also lacking is information on wood resources available on farmlands and private forests. Mapping and inventorying resources outside govern- ment forests and packaging the information for investors are important steps towards linking tree farmers to major markets. The establishment of the Information Centre at Kenya Forest Service is a step in the right direction. Inadequate financial mechanisms to support forestry investment: Due to the long rotations for commercial plantations, the available financial mechanisms in local banks are not well suited for forestry investments. Although forest industries are able to access funding from local banks, interest rates charged are very high (up to 30% per an- num) and the repayment period too short (12–48 months). Lack of long-term licences fur- ther complicates the matter and additional collateral is required to cover loan facilities. More favourable terms for borrowing funds to upgrade technology and to refurbish old equipment should be discussed with the Ministry of Industrialisation, including invest- ment incentives for forest industries. Consultations are needed between the govern- ment and banking institutions to develop mechanisms for funding commercial forestry. Pension and insurance schemes as well as youth and women funds are important and likely sources of funds for forestry investment, but strategies must be developed to access those funds. Insufficient technical skills: As a result of the harvesting ban, many sawmills and pro- cessing plants closed down and employees with technical skills in wood processing dis- persed into other livelihoods. Forestry industries are facing difficulties due to an acute shortage of qualified and experienced technicians and sawyers. The government-owned Forestry Industrial Training Centre, which offered technical courses, closed down a few years ago leaving no alternative source of training for employees in the industry. A training facility is being built at the Kenya Forestry College, Londiani and, when com- pleted, will offer courses for forest industry technicians. Training should emphasise health and safety for the employees as well as mill hygiene. These crucial aspects are generally neglected in the industry. Timber manufacturers should be encouraged to partner with the Directorate of Indus- trial Training in organising a sponsorship programme for technicians from the industry. Most wood-processing industries contribute to the industrial training levy and hence qualify for this type of sponsorship. Industry representation: The private sector needs to strengthen relations with govern- ment and other stakeholders. To achieve this, a strong association with active members is required. Organisations representing industry interests should be strength- ened by building their capacity in management and governance issues. Corruption: Rent seeking and corruption have been a challenge in the country. To address this challenge, a constitutional office, the Ethics and Anti-Corruption Commission (EACC), was established to spearhead the fight against corruption in collaboration with relevant arms of Govern- ment. Forestry, like any other sector, has been affected by corruption. Corruption results in higher cost of doing business and adversely affects competitiveness of products in the market. Non-trade barriers such as nu- merous police road checks and delays at weigh bridges affect the smooth running of business. National Forest Programme 2016–2030 43 FORESTRY IN A N A LY S I S

5.7 — A DEVOLVED SYSTEM

5.7 A DEVOLVED SYSTEM Some forestry functions are devolved and county governments are key stakeholders in forest management and development. Forestry is a devolved function as set out in the fourth schedule of the Constitution. County governments have the responsibility of implementing specific national government policies on natural resources and environ- mental conservation. Gazette Supplement No. 116 dated 9 August 2013 provides for devo- lution of the specified forestry functions as follows: “Forestry including farm forestry extension services, forests and game reserves formerly managed by local authorities, excluding forests managed by KFS, National Water Towers Agency and private forests”. The forest functions have been unbundled and transition implementation plans (TIPs) prepared for all 47 counties. Specific forest interventions could further be developed by county governments with the technical support of the national government as appro- priate. Counties have a shared responsibility in meeting the national target of 10% forest cover and are therefore expected to raise their current individual forest cover.

5.7.1 — Opportunities and challenges associated with devolu

5.7.1 Opportunities and challenges associated with devolu- tion The Kenya Forest Service is a key manager of forest resources. With devolution, other institutions, especially at local levels, will increasingly be involved as partners, manag- ers and co-managers. The creation of KFS was one of the major institutional innovations of the Forests Act, 2005. The Act also opened up a more decentralised way of manag- ing forest resources. Many critical elements of the process, including benefits sharing, remain unsettled. Table 5.6 provides the challenges and opportunities associated with devolution. Geta Community Forestry Association members studying business plan preparation. 44 Table 5.6. SWOT analysis on forest devolution. Strengths Weaknesses Mitigation measures • Involvement of community forest • Inadequate capacity and financial • Capacity building for counties on associations (CFAs) resources at county level generating income • Management of forest resources at • Overlapping responsibilities • Law enforcement, more capacity the local level between KFS and county building and increased awareness • Enhanced public and community governments on responsibilities and legislation participation • Unclear roles and responsibilities • More information sharing and • Increased opportunities to support among actors (KFS and KWS) dissemination counties • Weak flow of information between • More transparent procedures and • Potential for increased different sectors public participation benefit-sharing. Strengthened • Weak enforcement of forest sector • Strengthened implementation of representation of women and youth guidelines and policies (e.g., fuel- regulations • Enhanced equity and equality wood and charcoal plus benefit • Enhanced coordination between sharing) sectors • Improved possibilities for civic education on forest governance, • Scattered forest funds and • Guidelines formulation for cross- devolution, human rights, etc. by inadequate information regarding county cooperation civil society organisations (CSOs) them • Identification of new types of • Existing institution for Research and • Low cross-county cooperation due financing sources (e.g. PES), to Development to levies on raw materials and enhance private sector investments transportation • Weak Public-Private Partnerships Opportunities Threats Overcoming threats • Communities receiving more • Legal frameworks (e.g. county • Framework to be developed for benefits and revenues Governments Act, 2012 for rights of optimal participation of ethnic • Enhancing bottom–up decision- minorities and marginalised groups) minorities making not enforced in some cases • County policies should be anchored • Awareness raising of forestry • Devolution will not focus on forestry in national legislation resources • Counties may convert forest land • Allocate more resources to forest • Increased information sharing and into other uses sector: Natural forests as national dissemination at local level • The system promotes a sense of resources having great value. • Enhancing accountability entitlement for resources located in a county and this may block • Harmonised processes being investments from other areas. developed for participatory forest management planning at national • Focus on revenue collection goals, and county levels high fees and levies may be charged which may raise the cost of raw • Increasing collaboration material and affect competitiveness opportunities in cross-border forests of products. e.g. collaboration in Mt. Elgon Ecosystem • Climate change associated changes in forest productivity Investment opportunities in the counties include: • Using suitable community land to develop commercial plantations through private sector concessions or in joint ventures between a strategic partner and county government. • Promoting efficient wood industries by providing incentives such as land to encourage setting up of new processing facilities. Too many small units operate in the country at below installed capacity. County governments should encourage amalgamation of small units to make larger enterprises that can attract financial resources for modernisation and expansion. • Promoting farm forestry through provision of extension services. Counties could recoup some of the expenditure on extension services through a levy on wood products brought to the market from farmlands. • Providing manufacturing facilities for wood products (industrial parks). These facilities will house furniture manufacturers, cottage industries and light sawmills. County governments will benefit from rental incomes while creating employment within the county. National Forest Programme 2016–2030 45 • In the arid and semi-arid lands, county governments in conjunction with the private sector to map out important resources and prepare guidelines to attract investment in these areas. • Resources in the ASALs will need improved management to increase production (gums, resins, honey). Sustainable management and trade in these resources will provide investment opportunities to investors. • In the ASALs, counties will promote orderly trade in honey, gums and resins and develop collection centres and facilities for sorting and storing products. County governments will benefit from rental income and cess for the products brought into the collection centres. • Counties have the opportunity to streamline land and tree tenure systems to manage and limit conflicts.

5.7.2 — Institutional capacity in counties

5.7.2 Institutional capacity in counties Counties vary in their capacities to execute new responsibilities. Generally, they have inadequate capacities to provide accessible and mapped out information regarding nat- ural resources (Agrer, 2015). A key challenge now is to empower county governments to carry out new responsibil- ities in a competent and informed manner, while observing national laws and policy guidelines. The bottom line is that devolution as a concept has the potential to bring citizens and the government closer together, providing better informed and effective governance. This in turn could bring about social, economic and environmental develop- ment. These considerations are indeed valid for forestry development. 46 A N A LY S I S

5.8 — IMPACT OF CLIMATE

5.8 IMPACT OF CLIMATE CHANGE ON FORESTRY Kenya has contributed diminutively to greenhouse gas emissions but is one of the countries that is most vulnerable to the effects of climate change. Most climate change models project that the dry parts of the world will become drier, while the humid areas will become wetter and with greater and more unpredictable hydrological fluctuations. As Kenya is already a water scarce country, this is a forecast with important national implications. The ASALs as well as the flood-prone lands in western Kenya are projected to be more vulnerable. The projections generally draw negative scenarios on tree and animal health, resilience of ecosystems, water access and supply, food production and security as well as hydropower (MEWNR, 2013c; GOK, 2008; GOK, 2010b). Kenya is ad- dressing this through the National Climate Change Response Strategy and Action Plan. Some of the overarching climate-related issues surrounding forests include: Kenya National • Forests serve as the ultimate climate regulators Climate Change including serving as a carbon “sink”. • Increased climatic hazards like floods and droughts have led to higher Response Strategy mortality of plants as a result of nutrient leaching and water stress. and Action Plan were • There is growing concern on deforestation with experts saying that deforestation is exacerbating the effects of climate change. According launcehd in 2010 to the FAO Forest Resource Assessment 2015, deforestation accounts for to respond to the about 20% of the world’s annual greenhouse gas emissions (FAO, 2015d). challenges posed by Climate change impacts on the forestry sector include: climate change. • Affecting the growth, composition and regeneration capacity of forests, resulting in reduced biodiversity and capacity to deliver important forest goods and services. This will result in deforestation and degradation of forest and land ultimately leading to desertification, as communities strive to obtain their livelihoods from declining forest resources. This has been observed in many places including Machakos and Kitui counties, in coastal areas (e.g. Taita Taveta) and, in general, in all ASALs of Kenya. • Existing forested areas may undergo changes in vegetation types and species’ composition. In addition, more invasive species are projected to inhabit some areas. Excessive growth of some tree species has also been observed, e.g. excessive growth of acacia after the 1997 El-Niño in the north-eastern parts. • The projected rise in temperatures and long periods of drought may lead to more frequent outbreaks and intense fires. Forest fires have in the recent past affected Kenya’s major forests including Mt Kenya Forest. • The rise in temperature is also expected to extend the range of pests and pathogens. This is likely to affect many aspects of forests such as tree growth, survival, yield and quality of wood and non-wood products. Pests may result in plantation programmes being curtailed, select tree species being abandoned, or the necessity to harvest large areas dominated by infested trees. This was witnessed in the late 1990s when the country had to clear huge tracts of cypress plantations as a result of the cypress aphid attack. There are already fears of a widespread attack on Pinus patula (Mexican weeping pine) plantations in South Africa, which could easily spread to Kenya. National Forest Programme 2016–2030 47 Climate change intensifies floods, droughts, water scarcity and migration. • Projected increase in atmospheric CO2 concentration may raise the carbon-to-nitrogen ratio and interfere with productivity of all food chains, consequently affecting carrying capacities of landscapes with cascading effects on wildlife populations and habitats. • Changes in temperature may also lead to shifting of vegetation to higher elevations while some species could become extinct. Food and fuel for indigenous populations may be disrupted together with recreational industries that are of increasing importance. Across the country, some tree species are either extinct or their numbers have tremendously dwindled. • Increased flooding/sedimentation and aridity. As the coastal area where mangroves occur is a low-lying land, a minor increase in sea level will mean mangroves submerging unless they can migrate to new areas mainland. Most areas where mangroves could migrate have already been occupied by human settlement and infrastructure. Death of mangroves due to climate change has been observed in several areas along the coast such as in Gazi Bay, Mwache creek, Ngomeni, Tana River delta and Dodori creek (GoK, 2010b). • Kenya’s rangelands occur in areas where rainfall is low and erratic. The soils are also highly variable and infertile, hence, not suitable for intensive agriculture. The effect of climate change will be changes in productivity of grasses and shrubs as strong winds and flash floods wash away seeds. This will place even higher demand for tree fodder. • Climate change will throw natural rangeland ecosystems off balance by causing species’ ranges to shift, altering predator–prey interactions, decoupling animals from food sources or reducing habitat. • Droughts and less-productive pastures and fodder in the rangelands will raise human–human and wildlife–human conflicts (GoK, 2010b; Sloth, 2009). 48 A N A LY S I S

5.9 — GOVERNANCE,

5.9 GOVERNANCE, COMPETITIVENESS AND LIVELIHOODS Challenges, their respective solutions and identified outcomes of this NFP are assessed to impact particularly on forest governance, competitiveness and livelihoods. Good forest governance The major building blocks of good forest governance and their principal components are transparency, accountability and public participation, stability of forest institutions and conflict management, quality of forest administration, coherence of forest legislation and rule of law, economic efficiency, and equity and incentives (World Bank, 2009). The forestry sector has experienced poor governance in the past and still faces chal- lenges. The Constitution provides for national values and principles of good governance as a basis for improving the situation. These include: 1. Sharing and devolving power 2. The rule of law 3. Democracy and participation of the citizens 4. Equity 5. Integrity, transparency and accountability 6. Defining, recognising, protecting, and enforcing human rights; 7. Access to information 8. Objectivity and impartiality in decision making 9. Ensuring that decisions are not influenced by nepotism, favouritism, or other improper motives or corrupt practices. The National Forest Programme’s participatory process, the draft national forest policy and the REDD+ strategy process, provide an opportunity to effectively move the sector towards better and more effective governance. It is also evident that growing numbers of actors in public institutions, academia, the civil society and the private sector are aware of issues and committed to moving the reform agenda forward. Transparency, accountability, public participation and conflict management The main challenges relate to making information on forest re- sources, their use as well as related revenue streams available to the wider public in a way that ensures transparency and ac- countability. Availability of reliable information is fundamental for any forest investment and for community forest associations and county governments to effectively carry out forest manage- ment. There is a need to assess the roles of different actors in data collection, sharing and storing. The need is urgent to develop the capacity of local level actors. Given the disparities in the capacities of community forestry associations and the Kenya Forest Service, it is important to ensure that the principle of free prior and informed consent is respected in forest development. Equally, it National Forest Programme 2016–2030 49 is important to ensure that sufficient incentives are in place to benefit communities in the short term. In this regard, collaboration with civ- il society organisations and agricultural extension services could provide a sustainable institutional path. Disputes and conflicts on forest management and use are likely to increase since devolution is both a process of change and a multiplication of the number of stakehold- ers with legitimate interests in forests (Sloth, 2009). This will call for special attention to conflict resolution, especially taking into account the power imbalances between these actors. Economic efficiency, equity and incentives Parallel to the establishment of a free market-based tim- ber economy, actions need to be taken to include other forest products and services (e.g. conservation easements and ecotourism licences). To create a forest governance struc- ture that truly allows local stakeholders to assume an increas- ing role requires allocating forests with resources to be managed by parties that may be outside of KFS and other government agencies, and devolving management responsibilities and benefit streams. Revenues and other benefits should be shared in a way that provides all participants with suffi- cient incentives to maintain their interest. These actions, together with full transpar- ency of information, will assist in creating an enabling environment required for fresh investment in the sector. Effective and fair enforcement of the Forest Act Effective enforcement of the Forests Act requires addressing both internal factors with- in the forest sector and external ones. In this regard, progress has been made in es- tablishing the Enforcement and Compliance (ENCOM) Division of KFS. However, more enforcement activities will need to be taken up by local level actors (e.g. community forestry associations and local authorities) through, for example, “participatory moni- toring”, which will require that sufficient community incentives, be put in place. Paying attention to disadvantaged groups Though the Kenyan economy has been growing at a reasonable pace, poverty is still rampant. Despite being widespread, incidence of poverty is significantly higher in some rural areas than in others. Urban areas also have segregations of extreme poverty in slums and virtually no poverty in other areas. Trees and forests form the basis of livelihoods in many areas where poverty levels are high and where a social crisis due to youth unemployment and other factors is immi- nent. Therefore, forestry in support of sustainable charcoal and livestock production in the ASAL areas is critical. Historical injustices have affected groups within the popu- lation in various ways. Among all Kenyans, indigenous forest people have or have had the highest level of dependence on the forests. Special consideration must therefore be given to these groups. Competitiveness Kenya is in a global competitive market. All business sectors have become globalised, and this requires a high degree of value chain competitiveness. A central impact will come from the creation of an enabling environment for enterprises to operate compet- itively and attract more enterprises to forest products value chain. Besides minimising public–private bureaucracy, competitiveness entails upgrading company organisations, management, technology, human resources, capital sourcing, etc. The development pillars of Vision 2030 contain several initiatives that directly and indirectly seek to enhance economic and industrial growth as well as downstream employment in Kenya. They also need to be applied in forestry development. 50 Key issues of forest products demand, industry revitalisation and competitiveness Kenya is experiencing a boom in real estate development as well as in development of infrastructure, increasing the de- mand for woody construction materials (KFS-MMMB, 2013). This high demand is calling for increased investments and competitiveness in the national forestry sector pro- cessing. In 2015, sawmilling and plywood industries are the main segments of forest industries. Indicative calcu- lations and comparison with European productivity data suggest ample opportunities for improving the log–product ratio. The increasing net imports indicate that the Kenyan forest industries have not been able to satisfy the growing demand for forest products. In 2015, Kenya was hardly exporting timber products, leading to a negative trade balance. Vitalisation, capacity expansion and restructuring are needed to grow the industry and to meet the targets of Vision 2030. Business environment A favourable business and investment climate is critical for economic development, job creation and poverty reduction. The rationale is that a positive business climate and competitiveness accelerate forest investments, generate rural employment, improve overall sector competitiveness and create wealth. The implementation of the NFP will thus boost the contribution of the forest sector to the national GDP growth target of 10% annually. This amplifies the need to promote private commercial forestry and extended value chains. Measures and incentives are needed to promote inclusion of small-scale farmers in the value chains — from sawn wood to high-value carpentry and furniture making including better use of wood waste for energy and other uses. Forests and livelihoods Forests play an important role as an economic safety net that can cushion especial- ly poor rural households during periods of economic hardship. Rural households get both a diversified and a share of their income by collecting and selling forest products. However, forest products are usually not the main sources of income for rural households. They are often used as a backup when difficulties and emergencies occur. Forests also tend to be located in remote areas where market economies and technological progress are inhibited or slow. Commonly, forest-dependent people who live in or near forests tend to be politically weak or power- less (Profor, 2008). Recent developments for reducing emissions from de- forestation and forest degradation (REDD+) have the potential to provide benefits to local and indigenous communities. However, a number of conditions have to be met for these co-benefits to be achieved, including designing and implementing a national REDD+ strategy and programme complete with a benefit-sharing mech- anism. Forest-dependent people are likely to benefit from REDD+ if they have secure land tenure; the princi- ple of free, prior and informed consent concerning the use of their lands and resources is applied; and their identities recognised including participating in policy-formulation pro- cesses. National Forest Programme 2016–2030 51 6 OPPORTUNITIES A N A LY S I S FOR FORESTRY SECTOR DEVELOPMENT Fo r e s t s h a v e a g r e a t p o t e n t i a l t o contribute to the socio-economic well-being of the Kenyan people, thus providing an impetus for its continued development. A N A LY S I S

6.1 — HIGH DEMAND FOR

6.1 HIGH DEMAND FOR FOREST PRODUCTS AND SERVICES According to MEWNR (2013b), between 2012 and 2032 the national demand for firewood, charcoal, timber and poles is projected to rise by 22% against a 14% rise in the supply of the same products. During the same period, the deficit in the supply of these products is expected to increase from 10.3 million cubic metres to 15.0 million cubic metres. This growing demand for forest products is a key incentive for forest development particu- larly on private and community lands. Studies conducted around 1990 for the Kenya Forestry Master Plan, show the increasing demand for forest products provided a “pull effect” for tree planting and tree manage- ment in the high and medium-potential areas of Kenya, subsequently increasing tree cover. Similarly, a study conducted by MEWNR in 2013 on demand and supply trends of firewood, charcoal, timber and poles indicates that trees on farms are supplying 70% of the above products, communal and private forests 21% and public forests 9%. The following strategies will not only help reduce the widening gaps between the supply and demand of forest products but also promote forestry development, particularly on private and community lands. Incentives for farm forestry will be needed to strengthen small-scale farmers’ umbrella and producer organisations. In the longer term, farmers will be capable of carrying out farm forestry on their own as a self-financing profitable business while employing technical and lobbying capacities.

6.1.1 — Promoting farm forestry and woodland management

6.1.1. Promoting farm forestry and woodland management on community land With the size of gazetted forest limited, farm forestry and communal woodland man- agement are expected to provide the bulk of wood resources for domestic and industrial use. There is space to take advantage of this opportunity to intensify forestry extension services to private farmers and encourage them to integrate tree growing on farms (KFS, 2011a). An additional and supplementary opportunity is enhanced woodland management for combined forestry and livestock production benefits, especially in the ASALs. The ASALs have sparse woodlands and thin, woody shrub vegetation, but the trees and shrubs are nonetheless providing a substantial contribution to the national forest cover. Trees in the ASALs are essential for soil conservation and for providing fodder and shade for livestock, poles and construction material as well as medicines and fruits, and are thus essential for livelihoods in the ASALs. A key factor of success is to link resource man- agement with stakeholders with long-term interest in the productivity of ASALs. Recent studies have demonstrated that with a focus on adopting climate smart landscapes, multifunctional livelihood benefits can be preserved to simultaneously enhance climate change mitigation, disaster risk reduction and adaptation benefits for the country (Mi- nang et al., 2015). Because of the expansive areas considered, the adoption of climate smart landscapes including farm forestry and woodland management, can have signif- icant benefits for the country. Focus should be on training in increased use of improved germplasm and application of good management practices, including species and site matching, to boost productivity National Forest Programme 2016–2030 53 Community members preparing land for tree planting. and quality of plantations. Tree planting guidelines and training materials should be produced and translated into local languages so that key messages are well understood. There is an acute shortage of good-quality tree seed in the country. Use of inferior seed will continue to degrade the quality of plantations and woodlots. The tree seed situa- tion should be re-assessed and a strategy developed on how current shortages can be overcome. In the short to medium term, it may be necessary to import seed from key producers such as Argentina, Brazil, Chile, Honduras, South Africa and Zimbabwe for sale to tree farmers and other planters. Imported seed is expensive and it is imperative that in the medium term, seed orchards are established to supply high quality seed. KEFRI and the private sector should establish seed stands. KEFRI has the responsibility of monitoring and regulating tree seed production and trade. Farmers, and indeed other tree planters, depend on a narrow range of species. The main species are Eucalyptus grandis, Eucalyptus saligna, Pinus patula, Cupresus lusitanica and Grevillea robusta. The need is urgent to introduce new species and varieties in order to achieve higher productivity and wood quality while safeguarding against the devastating effects of disease outbreaks and attacks by insects and pests. Use of sci- entifically designed species trials to determine the most suitable species for different ecological zones is necessary before planting material is distributed to farmers and other planters. Farmers learn more by observation. County governments have the responsibility to use strategically located demonstration plots to show performance of different species as this helps a farmer to justify choice of species. Demonstration plots can also be used to showcase the impact of good management practices on tree growth and, hence, future revenues. Commercial tree nurseries should be promoted as the means for growing seedlings that farmers and institutions can purchase. The forestry extension service will link nursery owners to sources of improved seed. Only improved seed should be recommended for sowing. Nursery operators need training in good nursery practices so that they produce high quality seedlings to be sold in the market. The KFS and Kenya Forestry Research Insti- tute (KEFRI) should formulate a nursery certification process, and only certified nurser- ies will be recommended to supply seedlings to key farmers and projects. Certification will be for a period of one year and qualified nurseries will get free promotion before and during the tree planting season when nurseries recommended ny KFS are listed in the media. Giving free seedlings to farmers is not sustainable and destroys businesses for private commercial nursery operators. People do not attach much value to free things and free seedlings are not always planted properly. Free issues create a dependency syndrome and when the facility is not available, recipients stop planting trees. As the country pro- 54 motes commercial tree planting, it makes good business sense for farmers to embrace the full costs of establishing a plantation including cost of seedlings. Inventorying and mapping of wood resources on farmlands will provide useful infor- mation on species’ grown, area, age distribution, quality and volumes available. This information is useful to potential investors. County governments do not have capacity to map and assess tree resources on farms and the national government will need to assist in this regard. To make farm forestry commercially successful, farmers should be encouraged to add value to trees grown on farms as this increases revenues. The extension service must aim at advising farmers on products demanded by the market and provide links be- tween farmers and buyers. In the long term, farm forestry organisations can use their own personnel to provide advice, procure inputs and negotiate powers to achieve eco- nomic scales. Komaza Microforestry Programme Komaza’s micro forestry programme provides inputs (seed/seedlings) and fertilisers; Regular poor dryland farmers with know-how and on-farm and training throughout the lifetime market access. The idea of the programme is of their tree farm; Harvest and sales support. to link farmers’ tree production with the entire Komaza is organised with self-contained units value chain; right from tree seedling via value of operation (rural cells). A rural sell com- addition to markets. The programme is being prises roughly 9000 farmers and has its own implemented in regions of coastal Kenya where tree processing facilities. Thus, it is possible rainfall is low and soils infertile. The proximity to reach economies of scale and minimise of these regions to Mombasa ensures markets costs of transport and processing equipment for different products. Today, 6000 farmers as well as obtain an informed market insight. participate in the programme and about 1500 hectares of fast-growing and drought-resistant Up to now, Komaza has primarily been funded Eucalyptus sp. and indigenous hardwood Melia through social-impact foundations. Howev- volkensii have been planted. When farmers er, as forestry assets are being built and enrol in Komaza’s programme, they are provid- sales and value added products begin to ed with: Training covering best practices for show, the programme is becoming increas- preparing their land; Best possible planting ingly commercialised and self-financing. GROW TREES SELL WOOD Enroll Taining & Lifetime Harvesting Value-Add Wood Farmers Inputs Support Services Processing Sales • Komaza recruits farmers in village meetings • Komaza marks trees for selective thinning • Komaza supports farmers with site selection • Komaza fells trees with well-trained staff • Farmers prepare land according to best • Komaza organises trucks to transport logs practices • Komaza processes higher-value wood products • Komaza provides planting inputs and training • Komaza sells wood to retailers and consumers • Farmers plant their woodlots, often in groups • Farmers get good prices for their trees • Farmers do regular early weeding • Komaza recovers costs and some profit for • Komaza does pruning, pest/disease sustainability and to scale up to more farmers. monitoring, and growth monitoring. National Forest Programme 2016–2030 55 Tree growers associations are coming up and approximately 10,000 smallholders have registered in the Farm Forestry Smallholder Producers Association — an umbrella organ- isation promoting farm forestry, recognising tree planting as an alternative for a safe long-term investment opportunity. About 300 medium and large size farm forest owners have an average of 3,000–15,000 ha of privately owned forests. The medium and large farm forest owners are associated through the Kenya Forest Growers Association (NFP Secretariat, 2014). Consequently, an important avenue for forest development is through a strengthened producer organisation. Strengthening farmers and tree producers associations in com- mercial wood production, trade, market information access and further value chain de- velopment is a key factor in enhancing forest investments in future. The Komaza initia- tive is an example of a farmer programme growing trees.

6.1.2 — Contract farming and outgrower schemes

6.1.2 Contract farming and outgrower schemes The high demand for forest products offers an opportunity for contract farming and out- grower schemes. This involves a wood industry partnering with farmers to grow trees on its behalf and receive payment in return. This will benefit wood-processing compa- nies because a scheme provides access to additional, more secure or cheaper supplies of wood and tree products, diversifies the sources of raw materials, and avoids the overheads and fixed costs usually associated with direct tree growing by companies. For tree growers/farmers and local communities, outgrower schemes provide access to financial support while trees mature, higher net returns from trees and relatively more secure markets for wood. Such outgrower schemes systematically linking producers with markets could be ex- plored in Kenya where demand is evident and many farmers are already growing trees. Sappi and Mondi are key companies in the pulp November 2014, a tree farming grant scheme and paper industry in South Africa; both have was established in Tanzania to create a more flourishing outgrower schemes. Recently, larger conducive framework for private forestry plantation investors in Tanzania have been investments through increased availability of keen on combining their own plantation pro- information, public–private cooperation and grammes with adjacent communities or indi- institutional capacity building in pilot villages vidual smallholders in the form of partnerships (PROFOR, 2014). or outgrower schemes to expand long-term wood sup ply to their processing industries. Green Resources, Kilombero Valley Teak Company, and New Forests Company experiment with aspects of the Tree Growers Association concept. Institutional and contractual arrangements in these part- nerships and outgrower schemes enable smallhold- ers, communities and other involved tree growers to seize economic and social benefits. In Young teak plantation in Kilombero, Tanzania. 56

6.1.3 — Contracting system for tree planting

6.1.3 Contracting system for tree planting Many Kenyans have large tracts of land and desire to invest in forestry. However, they do not have the time or adequate knowledge of how to fulfil their financial ambitions. A critical mass of trained forest contractors who can establish and manage planta- tions and woodlots on behalf of potential investors should be developed. Training in- stitutions should mount courses for contactors to sharpen their knowledge on nursery, management, choice of species, species/site matching and plantation establishment and management. Contractors must also be trained in business administration and management. The contracting business will create jobs for foresters, forest technicians and manual workers drawn from rural areas where plantations are to be established. KFS, the Forestry Society or other competent body should develop an annual compe- tence-based certification system for forest contractors and recommend in the local press only the best contractors.

6.1.4 — Community forestry potential

6.1.4 Community forestry potential Forest management around the world is moving from the central top–down control of natural resources to private and community control. One well-tested and successful approach for this is community forestry. Examples demonstrate that genuine commu- nity forestry can bring about sustainable forest management and provide significant socio-economic and environmental benefits (FAO, 2012b; IUCN, 2001). In Kenya, joint forest management has so far been executed through the management model Participatory Forest Management (PFM). PFM is a model where the management authority of a forest land invites local people to participate in certain forest manage- ment activities with various responsibilities outlined in participatory forest manage- ment plans (PFMPs). However, the implementation of PFMPs through management agreements between KFS and community forestry associations has continued to be a slow process, resulting in delayed realisation of its full potential. Community forestry can complement PFM and other existing forestry management models. Community forestry is based on extended user rights and responsibilities handed over to the community. Usually, the managing community is entitled to all benefits from the forest, which promotes responsibility while preventing dissatisfaction with benefit sharing with the government. Counties manage significant forest and woodland are- as and the devolution of authority brings about new opportunities for managing such lands.

6.1.5 — Tackling impediments to tree growing

6.1.5 Tackling impediments to tree growing Although opportunities for tree growing are many, impediments are also present. The following impediments to tree growing should be removed: a) Inadequate supply of good quality tree seed. b) Non-functional forest extension system. c) Inadequate financial mechanisms to support commercial tree growing. d) Low recognition by government of importance of tree growing in the country leading to minimal financial incentives for the sector. e) Under-developed market systems and lack of value adding deny tree planters full economic benefits. Land and tree tenure is critical to this endeavour. Interest will be eroded if a person investing in trees is not sure that they will reap the benefits of harvesting the trees. Gender aspects also come into play. Women, who are keen on tree growing, may not always have an opportunity to engage in such an enterprise since, traditionally, it is the domain of men, who are also seen as owners of the land. Other impediments include restrictions through licensing or levies imposed by the formal and informal system. Yet others may be attributed to fees and other factors along value chains. For example, poor access to information on marketing restrictions appearing during road transport. The main opportunities lie in removing these impediments. National Forest Programme 2016–2030 57 A N A LY S I S

6.2 — REGIONAL ECONOMIC

6.2 REGIONAL ECONOMIC ASPECTS Kenya’s large, growing and relatively well-educated young labour force has skills in- cluding in ICT to efficiently produce forest products and services for local and export markets. The population is expected to double to 80 million in 2050, and an additional 800,000 people entering the work force annually. This labour force can be harnessed to develop skills for local and regional markets. This will form a strong platform for growth once the enabling environment is developed (World Bank, 2009). The largest share of Kenya’s forestry-related imports is paper products. Opportunities exist for exploiting alternative sources of raw materials such as sisal waste, bamboo, rice straw, maize straw, wheat straw and bagasse. Kenya has good opportunities for improving the efficiency and value adding of its tim- ber processing industries by changing the volume orientation to value orientation to exploit the competitive advantages for business. Requirements for industrial round wood are rising. The current low recovery rate of sawmilling contributes to high prices for sawn timber, which affect negatively the secondary timber processing industries (furniture and joinery) and result in sawn timber being substituted with other wood- based products—plywood, particle board, fibre board, wafer board. The existing plywood industry is operating at a high rate of the available capacity uti- lisation. Industry must expand capacity by about 50,000 cubic metres per year to meet the demand in Kenya in 2020. Investors have the opportunity to increase production for both domestic and export markets. Neighbouring countries are importing about 80,000 cubic metres of plywood annually, offering export opportunities for plywood from Kenya. Greater focus is needed in the use of small logs obtained from thinning plantations and woodlots. Traditionally, the industry capacity installed was geared to processing large logs. The situation has changed dramat- ically with more availability of small logs in the market. Industry must be innovative and adjust to accommodate this change. Technology available from India and China can make veneer from small diameter eucalyptus and pine logs. This technology is suitable to handle small-dimension logs from farmers’ woodlots and thin- nings from government and private forests, which currently have no market. A lucrative export market exists for veneer in India and Chi- na. Opportunities also exist for pro- duction of wood chips, sawdust and charcoal briquettes for indus- trial use. Factories owned by the Kenya Tea Development Authori- ty have a huge demand for bio-fuels, which can be met through using thinning and logging residue from woodlots and pri- vate plantations. 58 A N A LY S I S

6.3 — VALUE CHAIN

6.3 VALUE CHAIN DEVELOPMENT Kenya has an untapped opportunity to increase value adding of wood and non-wood forest products and to provide new forest products and services to domestic and in- ternational markets. Policies and measures have tended to focus on primary products, and the development of higher value wood (and non-wood) products is absent from the policy agenda. Kenya is increasingly promoting and strengthening value adding of forest products and thus, the socio-economic benefits. Producing more with less will be an important com- ponent in the quest for competitiveness (FAO, 2014; KWS, 2008) especially in light of potential negative impacts on production volumes due to climate change. Pro-poor value chain development focuses on strengthening the livelihoods of the poor such as farmers and labourers, and improving value for money at the consumer’s end. The pro-poor approach is based on the belief that vulnerable populations such as small- holders can be well integrated into a market that had previously excluded or only mar- ginally involved them. Opportunities for adding value to forest products definitely exist. It is also envisaged that more business-oriented county and community-based forestry will provide elevated income and employment opportunities as value addition becomes institutionalised. The NWFPs sector has many active players. Most production, processing and marketing are inefficient; practical strategies to address these inefficiencies have not been de- veloped. The development of NWFP value chains (with community forest associations, forest user groups, forest-based small enterprises, and associations) provides opportu- nities to develop rural livelihoods. Zoning is a key strategy of climate smart landscapes and is in line with climate change resilience and mitigation activities. A more commercial orientation to NWFPs will likely bring about improved value chains. County governments shall facilitate increasing productivity sustainably, value adding and links to markets as well as ensure quality control of NWFPs in order to enhance trade. Local communities have knowledge of NWFPs, their uses and benefits, but are often weak in business development skills. Inadequate market information and market access are other common constraints. KEFRI has conducted substantial research on gums, resins, aloe and bam- boo production and value chains. This research has helped improve use of known and less-known indigenous species of NWFPs and their har- vesting techniques, and develop marketing systems for products, and policy issues on guidelines of harvesting, benefit sharing and commer- cialisation. A prosperous investment opportunity lies in the cultivation and pro- duction of bamboo as an alternative to wood products. The high returns and diversity of products from bamboo make it a productive venture. Bamboo can also be harnessed to reverse land degradation, slow de- forestation and combat climate change through carbon sequestration. The versatility of bamboo makes it a commercially and environmentally sus- tainable resource. Challenges facing investment in bamboo production can be addressed through awareness creation, adoption of new technologies and increased access to markets for bamboo products. National Forest Programme 2016–2030 59 A N A LY S I S

6.4 — PROMOTING SMALL AND

6.4 PROMOTING SMALL AND MEDIUM ENTERPRISES Small and medium enterprise (SMEs) constitute 98% of businesses in Kenya and con- tribute 30% of jobs and 3% to the GDP. SMEs represent an opportunity to develop the rustic furniture production and possibly bring carpenters into formal production by de- veloping their capacities and skills as well as supporting them to set up formal enter- prises. Small and medium sawmills play a role in job creating and in manufacturing products for the market. Sawmills operate low-technology sawing systems with low timber recovery and need support to upgrade technology in order to improve production efficiency. The annual allocation of logs from public forests to small and medium sawmills is in- adequate and does not provide incentive for the mills to invest in better technologies. The mills are also in danger of being crowded out by the large wood industries currently favoured by the licensing system. The country has over 600 small and medium sawmills and not all should be in wood processing business. Reducing the number through a sys- tematic assessment of their performance will ensure that only viable units are allowed to operate. Small sawmills should be encouraged through incentives to join and form cooperatives. Larger units formed should be ring-fenced and given special support in training, adequate allocation of raw materials and financial support to upgrade tech- nology. They can also be supported to set up associations that may act as forums for capacity building and marketing. These may be productive pathways to modernise the industry and a good vision for the furniture production sector. 60 A N A LY S I S

6.5 — WIDENING THE SCOPE

6.5 WIDENING THE SCOPE FOR PLANTATION DEVELOPMENT

6.5.1 — Future plantation management

6.5.1 Future plantation management More investors are looking towards Africa for opportunities involving industrial planta- tion resources. However, Kenya is not a major target for such investments. The reason is most likely related to land ownership patterns, little access to large areas of land and the overall foreign investment climate (Pöyrö, 2011). In Uganda, between 2002 and 2008 plantation investments grew four-fold, much of this investment has been accredited to domestic small-scale tree growers benefiting from the support of a specific public– private partnership incentive scheme. Outgrower schemes have been used to facilitate small-scale production. Many individuals and families in Kenya have large tracts of land suitable for commercial tree planting. These farms can be used to develop outgrower schemes or to invest in tree growing to supply the general market. Good lessons can be learned from success- ful private plantations developed by Kakuzi Ltd, Unilever Tea Company, Finlay’s Ltd and others. According to Green Resources (2012), the cost of establishing plantations in East Africa is competitive, which explains their interest in expanding forest plantations in Tanzania and Mozambique. Kakuzi company has well-balanced production inclusive of forestry plantations and processing as well as catchments with indigenous flora and fauna Kakuzi Ltd. was formed in 1906. The company produces tea, avocado, macadamia nuts, pineapple and other horticultural crops. It also engages in livestock keeping and forestry development. Kakuzi pays special attention in managing plantations of both indigenous and exotic tree species. By employing a full-time forestry man- ager, the positive effect of conserving and managing indigenous forests is reflected in the number and diversity of flora and fauna in these areas. Riparian reserves are well-managed, invasive plant species removed and many areas enhanced with indigenous tree species. Plantation forests are managed and used based on a forestry management plan to ensure a steady and sustainable supply of fuel wood used in tea processing among other uses. There are 1,282 hectares of mainly Eucalyptus grandis, E. saligna and E. camaldulensis plantings. Of these, 905 hectares are commercial plantations and 377 hectares are non-commercial plantations. Currently, Kakuzi plants between 20 and 30 hectares of trees per year on high-yielding sites. The company has developed a wood-processing yard where timber and poles are treated. Timber is milled, pallets manufactured, “eco-friendly” charcoal produced and firewood sold, all in the same yard. Source: www.kakuzi.co.ke National Forest Programme 2016–2030 61 Demand for forest products is escalating and standards and area under plantations must improve. Better species/site matching, optimum stocking in plantations coupled with better quality management are needed to achieve the desired level of productivity. Due to threat of diseases and pests, new species and hybrids resistant to diseases and pests should be introduced in the plantation development programme and supported by appropriate research through establishment and monitoring of species trials. A grow- ing number of large international forestry organisations is looking for opportunities in Africa and will bring considerable expertise and technology transfer. Parallel to this, farmers and smallholders in Kenya are establishing new plantations to respond to the increasing demand for forest products.

6.5.2 — Outsourcing and concessions

6.5.2 Outsourcing and concessions The Forest Conservation and Management Bill (2015) defines various agreements for outsourcing forest management activities in public and community forests. State plan- tations that can be commercially used by private professional parties could be effec- tively managed through licensing, concessions, contracts or joint agreements. These could be issued by KFS or the county department responsible for managing a specified The condition of forest area, at a price based on valuation and bidding. Countries around the world have developed various approaches to forest concession arrangements. The preferred public plantations approach is influenced among other factors by public and government attitudes, the calls for a paradigm capabilities of the forest authority, the nature of the forest (e.g. natural or plantation) and the condition of infrastructure. shift for efficient Potential benefits of managing State plantations using concessions: operational • engaging the private sector in plantation development, an management. activity that it has demonstrated it can do very well • allowing public sector institutions to concentrate on what they do best, i.e. conserving essential habitats, regulatory and enforcement tasks, and supporting the development of a feasible environment for private forest management • relieving the State of some financial and management load and ensuring sustainable commercial-oriented management • shifting some risks and coordination challenges involved in State production of wood to the private sector • allowing the private sector to grow species and log quality that it determines as most appropriate for its processing activities • monitoring and comparing the overall efficiency of all concession arrangements versus public plantation management and taking necessary actions. The government’s call for private–public partnerships (PPP) and sustainability must be key requirements for any concession model. In forestry, these requirements are primar- ily seen to: • carefully identify suitable forest areas for PPP to avoid environmental damage • manage conflicts likely to arise if investors from one county are allocated forest concessions in another county • use a transparent, well-publicised and all-inclusive method of allocating concession areas. Shortage of land and powerful individuals and groups with self-interests will often complicate the process and use their influence to their own advantage • give incentives to the private sector to use all of its expertise and business management capacity to produce the highest quality plantation forests yielding the optimal volume of quality logs • relieve KFS of the financial and management burden as well as of risks associated with plantation management whilst still regulating the process and generating income to be ploughed back to other forest conservation and management activities. 62 Alternative models for state-run plantations should be assessed to ensure the planta- Concessions and tions are sustainably managed. Functions, legal aspects, roles and responsibilities of each partner should be clarified and agreed on. increased private engagement 6.5.3 Exploring tree improvement through PPPs are The scope for improving selected indigenous tree resources is vast. Improving these all opportunities for species will reduce the economic performance gap between exotic and indigenous spe- cies in favour of indigenous species. The first breeding cycle of indigenous species may public plantations provide a 10–20% gain in improved quality and also, to some extent, increased growth. Subsequent cycles will add more gains. that need to be The first step is to ensure gene conservation, either in-situ or ex-situ, of promising in- explored, tested, digenous tree populations from various ecological zones. This will ensure that the origi- evaluated and nal evolutionary gene pool is conserved. Next will be selecting and testing mother trees with the preferred attributes, and establishing seed stands and seed orchards in various balanced in a ecological zones. To optimise matching of species/population to planting site, prove- pragmatic way and nance trials of target populations must be undertaken. Finally, organised procurement of genetically and physiologically good seed combined with capacity building on germi- within a specific nation technologies will ensure a good base for future adoption of indigenous species. Parts of such operations could also be outsourced to private tree and seed enterprises. timeframe. The scope for tree improvement involves introducing high performing and disease re- sistant species and hybrids into the country. This has been done in the past through a Gatsby program, which introduced nearly 20 eucalyptus clones from South Africa into the country two decades ago. Some of the introduced clones did not perform as well as expected and are now outdated while others became susceptible to diseases and pests. New and better-performing eucalyptus clones have been developed in South Africa and these should be tried and, if found suitable, introduced as new industrial plantation species. Clones are expensive and in many cases out of the reach of small-scale tree Tree seed research growers. Use of high quality seed of the right species is more appropriate for small- under way at KEFRI. scale farmers. One of the biggest drawbacks of estab- lishing commercial plantations in the country is lack of adequate seed of good quality and effective inoculant. Import- ing seed (from South Africa, Zimbabwe, Argentina, Brazil, Uruguay, etc.) has been very expensive with some seed selling for over USD 1,000 per kilogram. To make af- fordable tree seed available in the coun- try, efforts must be directed towards de- veloping high quality seed orchards to meet domestic demand and export sur- plus to neighbouring countries. This task should be undertaken by KEFRI but the private sector should also be encouraged to produce high quality tree seed as a commercial undertaking. The country needs a national strategy for tree improvement developed through part- icipation of all key stakeholders. KEFRI should be the focal point and convenor of stakeholder meetings to develop it. National Forest Programme 2016–2030 63 A N A LY S I S

6.6 — CORPORATE SOCIAL

6.6 CORPORATE SOCIAL RESPONSIBILITY IN FORESTRY DEVELOPMENT Corporate social responsibility (CSR) is becoming increasingly associated with success- ful business enterprises. It was designed to ensure responsibility for corporate actions, i.e. to behave responsibly. In forestry, CSR is used to create a positive impact on the en- vironment, employees and external stakeholders including consumers and the society as a whole. CSR therefore embraces a range of ethical and market-based instruments through which a business enterprise voluntarily addresses the social (e.g. workers’ safe- ty) and environmental issues (Reinhardt et al., 2008). Regarding worker safety and comfort, most enterprises in the forestry sector have a long way to go. Basic safety requirements—such as hearing protection, chain saw pro- tective gear and helmets—are often not provided. Such protective gear lifts workers’ self-esteem and motivation to work. This results in higher productivity and more re- sponsible and successful business enterprises, an opportunity that is not well used. Many companies are actively getting involved in tree planting activities designed to establish gains, and boost consumer gratification and company branding (Cardskadden & Lober, 1998). An example is Safaricom’s M-Pesa Foundation that has teamed up with the Kenya Defence Forces in a tree planting exercise at Mau in Eburu Forest. Finan- cial sponsorship for raising awareness of the environment and tree planting are other modes through which the corporate society can engage in conservation (Mayers, 2000). CSR activities play a big and increasingly important role in customer attraction and sat- isfaction, in the recruitment of the best employees and in the conservation of forests and the environment as a whole. Corporate social responsibility also helps to uphold good forest social and ethical standards. The adoption of CSR practices is therefore both an environmental and corporate opportunity when well managed. 64 A N A LY S I S

6.7 — NATURE-BASED TOURISM

6.7 NATURE-BASED TOURISM Ecotourism is a promising investment opportunity for the forestry sector. Globally, it is estimated that 40–60% of all international tourists are nature tourists. Kenya is a popular destination and nature-based tourism attracts over 70% of tourists. It gener- ated a revenue of Kshs 37.4 billion in 2013. National game parks and reserves therefore constitute the backbone of the tourism market. In the past four years, Kenya received an average of 625,205 non-resident visitors annually to the parks and reserves (Mayaka, 2012; Weismann et al., 2014; KTDC, 2015; Skift, 2015). With the national game parks and national reserves covering about 8% of the landmass, Kenya offers ample opportunities for nature-based development in addition to safari tourism. Increasing num- bers of tourists want to interact with local communities and to stay in places that impact positively on both the environment and the local population. The wildlife conservation sector has applied com- munity conservation approaches. For exam- ple, in many areas of Laikipia and Narok counties local people carry out many important conservation and sustain- able wildlife management activities in buffer zones near national parks and reserves. Community–private– public partnerships can bring incentives and benefits to com- munities through nature-based tourism. Forests offer a wide range of activities for tourists such as nature trails, picnic and camp- ing sites, canopy walks, ad- venture and sports tourism. A growing number of other com- munity and private tourism pro- jects range in scale from com- plete community management to partnership with an investor who provides know-how and capital to build tourist facilities. This opportu- nity has not been fully exploited in the forest sector and should be prioritised to encourage the same benefits that eco- tourism-based conservation has delivered in the wildlife sector. Initiatives like community exposure visits and business skills training are critical in empowering communities to develop eco- tourism sites. National Forest Programme 2016–2030 65 A N A LY S I S

6.8 — FINANCING

6.8 FINANCING OPPORTUNITIES Financing opportunities for forestry development that can be exploited in Kenya include private sector investment, the green economy and payment for ecosystem services.

6.8.1 — Private sector investment

6.8.1 Private sector investment The private sector in this context includes smallholders, organised farmers and their associations, and large, small and medium-sized enterprises associated with forest products and service provision. It also includes various service providers, particularly in the financing sector. The private sector encompasses players both within the forestry sector, e.g. farmers, pastoralists, and outside, e.g. a tea industry that grows and/or uses trees. Kenya should support the private sector to establish plantations on public and private lands, as implemented in Uganda (see box). Several private investors can benefit from The Sawlog Production Grant Scheme (SPGS) in Uganda has such a scheme. Smaller farms could ad- evolved into a robust model that successfully engages private vantageously bundle their respective tree growers in planting on a commercial scale. It was designed areas together and apply to be clients of the scheme. Grants and subsidies may to meet the needs of investors who are interested in growing thus be used both to encourage private timber commercially. SPGS provides a grant covering 50% of investment in a national resource (timber the estimated establishment cost to private planters accept- plantations) and as a policy instrument to ed into the scheme, following inspection of field operations. guide the type of forestry undertaken.

6.8.2 — Forestry in a green economy

6.8.2 Forestry in a green economy The green economy is defined as an economy that aims at reducing environmental risks and ecological scarcities for sustainable development without degrading the en- vironment. In a green economy, the sustainable management of forests becomes a foundation for sustaining a wide range of sectors and livelihoods (UNEP, 2011). Moreo- ver, the whole spectrum of benefits, including environmental benefits, is valued. Green economy also aims for effective carbon sequestration in climate change mitigation. The transition towards a green economy therefore requires investing in forests through conservation, rehabilitation, expansion and increased adoption of agroforestry practic- es (UNEP, 2011, 2014). Various green initiatives based on the natural capital are being implemented in the country. These include, among others, efforts focused on forests and conservation of biodiversity. Clean technologies have also been established to ensure efficient pro- duction of forest products and value addition. Charcoal producers are being registered through charcoal producer associations, thus creating awareness of effective technolo- gies in charcoal production. Although forests are commonly considered free public goods, it is important that the public sector provides an enabling environment and incentives for the private sector to invest in sustainable forestry. This opportunity will in turn strengthen the green economy and the goals of the Kenyan Constitution for a cleaner and a more productive environment. 66

6.8.3 — Payments for ecosystem services in forestry

6.8.3 Payments for ecosystem services in forestry Payments for Ecosystem Services (PES) is a mechanism for providing incentives to land users to sustainably manage the natural environment in order to ensure the continued availability of ecosystem services (Milder et al., 2010). Interest in PES has increased, especially with the development of the carbon credits trade (REDD+, CDM/VCC) in re- sponse to climate change. Forests are central in PES; the key defining factor of what constitutes a PES transaction Income generated is that the payment causes the environmental benefit to occur where it would other- wise not have occurred. In other words, the service is “additional” or, at the very least, from forestry-based the service can be quantified and tied to the payments made. Forest outputs are often considered tangible goods such as timber, where the quality and quantity are easily PES schemes is and directly used to value the good. When it comes to ecosystem services, which have unknown. None- no apparent “price” and are often viewed as “free” public goods, their value becomes more difficult to gauge. theless, forestry- The greater PES potential is in a green forestry-based economy that is centred more based PES schemes on services for watershed, carbon sequestration, biodiversity and landscape beauty. In Kenya, the World Wildlife Fund and CARE International have come up with a holistic form an untapped approach referred to as ‘Equitable Payments for Watershed Services’. The aim of the in- and possibly huge itiative is to alleviate poverty through watershed conservation and to do so with equity and social justice (FAO, 2013a). Additionally, Wildlife Works has pioneered payments for potential in Kenya. an ecosystem services project in Taita Taveta County financed on the voluntary REDD+ market through the sale of reduced emissions by avoiding deforestation (Barbier & Tesfaw, 2012; Bernard et al. 2014). There is opportunity to apply PES schemes to protect and conserve forest ecosystems. To increase these business models, awareness should be raised of PES options in for- estry so that they are prominent in bundled PES systems. However, organisations need both finances and skills in project design to be able to tap into the various PES fund- ing options. Government institutions have a responsibility to promote PES and support partnerships as well as ensuring that an enabling legal framework is in place.

6.8.4 — REDD+ forest finance

6.8.4 REDD+ forest finance Deforestation and forest degradation are significant causes of global warming, account- Approximately 80% ing for a minimum of 20% of global greenhouse gas emissions (FAO, 2015). This makes of the earth’s total the loss and depletion of forests a major issue for climate change mitigation and adap- tation (Obersteiner et al., 2010). Eighty per cent of the Earth’s above-ground terrestrial plant biomass is carbon and 40% of below-ground terrestrial carbon is found in forests. Consequently, contained within combating deforestation and forest degradation has been identified as one of the most cost-effective ways to lower carbon emissions (Joosten et al., 2012). The international forests, of which community is moving towards a system that will provide incentives for reducing emis- sions from deforestation, degradation and other forest land-use changes. roughly half of that While there are several avenues for accessing REDD+ financing, market-based mech- is carbon. Forests anisms have so far been the only example in Kenya. For example, the Kasigau Corri- represent the most dor REDD+ project in Taita Taveta County has accessed voluntary payments for REDD+ emissions reductions generated by avoiding deforestation through conserving 200,000 important and hectares of dryland woodland. While this operates on the voluntary market, the efficacy efficient terrestrial of providing incentives for forest conservation has been proven. Global mechanisms for financing REDD+ at the national level are still evolving and in- carbon capture clude the World Bank’s Forest Carbon Partnership Facility, the UN-REDD Programme, and storage sys- and the Green Climate Fund, a financial mechanism of the UNFCCC. Early contributions to establish national programmes based on grants and targeted support finance have tem we have. made it possible for Kenya to set up a national structure and institutional arrange- ments. This will ultimately lead to a performance-driven system where Kenya’s actions to mitigate climate change through a suite of REDD+ actions will result in results-based payments. In future, it is likely that REDD+ payments will be a significant source of forest-based revenue. National Forest Programme 2016–2030 67 7 THE NFP STRATEGY STRATEGIC FRAMEWORK The NFP addresses forest development for improved management and s u s t a i n a b i l i t y. STRATEGY

7.1 — GOAL,STRATEGIC

7.1 GOAL,STRATEGIC OBJECTIVES AND OVERALL OUTCOMES The overall goal, the five strategic objectives and overall expected outcomes of the Na- tional Forest Programme are defined as follows: NFP Goal Sustainably managed forests and allied natural resources for socio-economic growth and climate resilience. Strategic 1. Increase forest and tree cover and reverse forest degradation. Objectives 2. Enhance forest-based economic, social and environmental benefits. 3. Enhance capacity development, research and adoption of technologies. 4. Increase investments in forest development. 5. Integrate national values and principles of good governance in forest development. Overall 1. Increased forest /tree cover to at least 10% on public, private and community lands. Outcomes 2. Enhanced visibility and recognition of the multiple values and benefits of forests/tree resources. 3. Improved utilisation of forest resources for sustainable socio-economic development, biodiversity and environmental conservation. 4. Improved participation in planning, decision making processes and public support for sustainable forest management. 5. Developed, innovative, safer, and effective forest-based enterprises. 6. Strengthened capacity to research, generate knowledge, skills, competitive attitudes and dissemination. 7. Increased private and public investments in the forestry sector. 8. Improved forest governance and service delivery. 9. Enhanced conflict management skills at all levels. National Forest Programme 2016–2030 69 Guiding Values and Principles The implementation of the NFP framework will be guided by the following values and principles. Values • Equity • Professionalism • Good forest governance • Recognition and respect for cultural identity, indigenous knowledge and intellectual property rights. Principles • Sustainable forest management • Gender equity and equality • Rights-based approach • Public participation and representation • Polluter and user pay • Free, prior and informed consent. 70 STRATEGY

7.2 — PROGRAMME DESIGN

7.2 PROGRAMME DESIGN

7.5.1 — The NFP Tree

7.5.1 The NFP Tree The NFP tree shows the major components on which the programme is based and high- lights its thematic clusters. NFP Thematic Clusters 1 FOREST PRODUCTIVITY 4 5 3 6 2 FOREST GOVERNANCE 2 7 3 NATURAL FOREST 8 COMPETITIVENESS MANAGEMENT AND 1 CONSERVATION 4 FOREST GOOD FOREST GOVERNANCE FOR WATER The trunk depicts key impact areas: Branches represent the eight the- • Competitiveness of forestry- matic clusters, the sub-branches IMPROVED LIVELIHOODS related activities the 25 programmes and leaves 5 FOREST FOR ENERGY • Good forest governance • Improved livelihoods make up the strategies 6 FORESTRY EDUCATION, CONSTITUTION, SDGS, SUSTAINABILITY VISION 2030, INTERNATIONAL FACTORS: TRAINING AND AND REGIONAL ENVIRONMENTAL, RESEARCH POLICIES AND LEGAL FRAMEWORKS AGREEMENTS SOCIAL, ECONOMIC 7 FOREST AND CLIMATE CHANGE The roots depict the NFP foundation that embraces: 8 FOREST • The Constitution, policies and legal frameworks and FINANCING development blueprints including Vision 2030 • The Sustainable Development Goals and international and regional agreements • Sustainability factors: environmental, social and economic National Forest Programme 2016–2030 71 Sustainability factors • Environmental sustainability: includes forest recovery, increased tree cover, forest ecosystem regeneration, forest health and protection, the role of forests and their functions in water catchment in addition to other environmental services. • Economic sustainability: includes economic growth from forests based on extended value adding, promotion of commercial and farm forestry, more emphasis on business-oriented forest management by counties and parastatals working in close collaboration with communities, the private sector and civil society. • Social sustainability: includes political goodwill, pro-poor participatory forest management and socio-cultural aspects integrating sustainable forestry management.

7.5.2 — Thematic clusters and their objectives

7.5.2 Thematic clusters and their objectives The thematic clusters are interlinked and consist of related programmes (Table 7.1). Details are provided in Chapter 8.

7.5.3 — The Programmes

7.5.3 The Programmes Each thematic cluster has a number of programmes with objectives and intervention strategies. Programmes and their objectives are listed in Table 7.2; more details are provided in Chapter 8. Table 7.1. NFP thematic clusters and their objectives. Thematic clusters Thematic objectives 1 FOREST PRODUCTIVITY Increase forest and tree cover and optimise management of forest resources 2 FOREST GOVERNANCE Strengthen forestry governance systems for sustainable environmental, economic and social benefits 3 NATURAL FOREST MANAGEMENT Sustainable management of natural forest ecosystems AND CONSERVATION 4 FOREST FOR WATER Sustainably manage water resources and their catchments 5 FOREST FOR ENERGY Sustainably produce, manage, and utilise biomass energy 6 FORESTRY EDUCATION, Enhance capacity in forestry education, extension, training and research TRAINING AND RESEARCH 7 FOREST AND CLIMATE CHANGE Integrate climate change actions in forest programmes 8 FOREST FINANCING Diversify forest financing mechanisms 72 Table 7.2. Thematic clusters, programmes and programme objectives. Thematic Programmes Programme objectives clusters 1 1. Plantation development To increase and sustainably manage forest plantations FOREST PRODUCTIVITY 2. Dryland forestry development To sustainably manage dryland forest resources 3. Farm forestry To improve livelihoods and environmental resilience 4. Forest health To monitor and manage abiotic and biotic agents 5. National forest resources To develop an integrated national forest assessment and assessment and monitoring system monitoring (NFRAM) 6. Forest products development To increase efficiency in harvesting, processing and and value addition utilisation of forest resources 2 7. Policy, legal and To create an enabling environment and legal frameworks FOREST institutional reforms for good forest governance GOVERNANCE 8. Forest information To effectively manage forest information for enhanced management and access dissemination 9. Community, gender and To improve stakeholders’ participation in sustainable special interest groups forest management in forest management 10. Forest law enforcement To ensure compliance with forest legislation and compliance 3 11. Natural forest management To manage natural forests for sustainable production of NATURAL goods and services FOREST 12. Eco-tourism To promote nature-based tourism for enhanced MANAGEMENT AND conservation of natural forests and improved livelihoods CONSERVATION 13. Community forestry To establish community forestry for environmental and socio-economic benefits 4 14. Watershed conservation To rehabilitate and manage water catchment areas FOREST and management FOR WATER 15. Soil and water conservation To improve soil and water conservation 5 FOREST 16. Forest energy development To increase access to energy through increased biomass FOR ENERGY and use of efficient technologies 6 17. Education To enhance content and quality of forestry education FORESTRY EDUCATION, 18. Training To strengthen the capacity of stakeholders through training in forestry skills TRAINING AND RESEARCH 19. Research and development To generate knowledge, develop technologies and innovations in forestry 7 20. Climate change mitigation To enhance carbon stocks within and outside public forests FOREST 21. Climate change adaptation To enhance resilience to climate change shocks and land AND productivity CLIMATE CHANGE 22. Disaster risk reduction To decrease vulnerability to severe climate change impacts, and create opportunities for alternative livelihoods 8 23. Forest resources valuation To determine the total value of forest resources and FOREST increase financing to the forest sector FINANCING 24. Forest resource mobilisation To mobilise resources for forest development 25. Forest investment TO provide investment opportunities, profiles and incentives National Forest Programme 2016–2030 73 8 THEMATIC STRATEGY CLUSTERS AND PROGRAMMES This chapter presents eight thematic clusters which describe t h e 25 NFP p r o g ram m e s in d e t a i l . To g e t h e r, t h e c l u s t e r s an d p r o g ram m e s f o r m an in n ovat ive c o n c e p t u al f ram e wo r k for interventions in forestry development. STRATEGY

8.1 — FOREST PRODUCTIVITY

8.1 FOREST PRODUCTIVITY CLUSTER Forest productivity addresses efficiency in production, processing and trade of forest products in Kenya. Forest products are fundamental components of modern life as they are made from renewable resources. Thematic cluster 1 covers aspects of productivity of plantation forests on government and private lands, dryland forests, farm forestry, forest health, as well as harvesting, processing and trade in wood and non-wood forest products. Additionally, technology, skills and efficiency upgrade and marketing through- out the forest products value chains are crossover strategic needs within this theme to meet the country’s growing need for wood, fibres and non-wood forest products. Tree improvement, silviculture and species site matching play major roles in the growth, survival and quality of forests. The concerns of having an appropriate management re- gime and sustaining a healthy and productive forest ecosystem are emphasised in this theme. Sustainable forest management 1 FOREST PRODUCTIVITY could be achieved through a combina- tion of productivity, economic, social and environmental considerations. Plan- Key challenges ning for interven tions in forest produc- • Inadequate knowledge of tree growing tivity must take into account impacts as a feasible enterprise of climate change. In addition, innova- • Weak implementation of good practices tive partnerships between private ac- in forest management tors and government will be explored. • Bureaucracy is limiting private sector investments • Limited appropriate and innovative financial 8.1.1 Challenges, situational mechanisms to support expanded tree growing analysis, and results frame- • Inadequate financial mechanisms to support technology upgrade work • Public sector is not adequately providing Challenges: Box 1 shows the key challeng- necessary incentives to the private sector es in forest productivity. • Ineffective and unrealistic management Situational analysis: Kenya is a low for- plans which are not regularly updated est-cover country, but despite this state • Inadequate knowledge on species site matching and forests provide a wide range of goods and forest management for exotic and native tree species services and contribute to the national economy. • Underutilisation of and poor approaches to tree growing in ASALs Major threats to Kenyan forests include • Inadequate availability of quality competition for land due to agricultural germplasm (planting material) expansion, settlement and urban devel- opment, excessive extraction of forest • Planting few commercial species. This narrow genetic products, unsustainable charcoal produc- variability is risky due to diseases and pests tion and overgrazing. Most of the existing • Effects of climate change on forests closed-canopy forests are located in high • Excessive waste in processing and little use of waste potential areas while significant wood- • Lack of market information on forest products lands occur in the drier areas. The great- • Inadequate information on available est potential for increasing tree and forest opportunities in the ASALs cover lies on farm and to some extent in dryland areas. A strong base upon which • Inadequate forest resource assessment data, poor forest productivity can be enhanced is access and dissemination of forest information through improved forest management and National Forest Programme 2016–2030 75 a refurbished forest industry. Innovations in institutional and financial arrangements are needed to enhance implementation of good forest management practices. Table 8.1 presents the key points derived from analysing the thematic challenges under- taken jointly by experts and stakeholders. Results framework: The strategic planning framework for this thematic cluster is pre- sented in Table 8.2. Programmes within this thematic cluster include: • Plantation development • Dryland forestry development • Farm forestry • Forest health • National forest resource assessment and monitoring • Forest products development and value addition. 1 FOREST PRODUCTIVITY Table 8.1. SWOT analysis for forest productivity cluster. STRENGTHS WEAKNESSES • Availability of trained forestry • Lack of commercial approach/inadequate personnel in KEFRI and KFS investment in plantation development • Availability of a supportive legislation • Inadequate information on forestry • Germplasm of a wide range of indigenous and weak dissemination species with great potential • Outdated technologies • Potential high return on investments • Low adoption of new technologies • Supportive stakeholders including • Inadequate technical skills in tree growing, development partners and private sectors wood production and processing • Availability of land mainly in the ASALs • Unclear tree tenure system/ownership • Favourable sites and climatic conditions • Poor management of forests in ASALs • Established institutions related to forestry such • Inadequate availability of quality germplasm as KFS, KEFRI, KWS, FSK, KFTGA, KFWG and FAN • Weak national tree improvement strategy • Established training and research institutions • Slow development and implementation • Expanding domestic and regional markets of management plans • Weak enforcement of laws and regulations • Lack of forest certification • Undervaluation of forest goods and services OPPORTUNITIES THREATS • Demand for forest products exceeds supply • Vested interests • New technologies and improved • Non-recognition or awareness of management strategies the true value of forests • Untapped potential for forest • Climatic changes; erratic/ product value addition unpredictable weather changes • Dissemination strategies to public • Invasive species, animal damage, forest domain to increase awareness fires and pests and diseases outbreaks • Potential in forest certification • Market failure, product substitution, cheap • Species suited to different ecological zones imports, inadequate supervision of standards • Private entities interested in concessions • Non-competitive market • Potential for establishing a Forest • Establishment of monocultures Conservation and Management Trust Fund and loss of biodiversity • Commercial establishment of • Population pressure and land-use changes high value tree stands • Willingness of citizens to venture into farm forestry and urban forestry • Devolved governance and political goodwill 76 Table 8.2. Thematic objectives, outcomes and indicators. Thematic objective Outcomes, 2016–2030 Indicators of achievement 1 Increase forest and tree cover and Long term (2030) Increased productivity in wood • % increase in the forestry sector contribution to the GDP optimise management and non-wood forest industry • % increase in forest and tree cover of forest resources • % increase in seed orchards supplying quality seeds Medium term (2025) • % increase in no. of forest products value chain Increased supply of forest • Increase in household incomes products and services for domestic and commercial purposes Short term (2020) • % increase of wood and non-wood Enhanced diversification, industries using improved machinery management, processing and • % increase in forest plantation area, tree marketing in the forest industry cover, and production per unit area

8.1.2 — Plantation development

8.1.2 Plantation development Plantation forestry is mainly established for commercial purposes; however, it plays an important role in providing social and environmental values. Forest plantations are established mainly to provide timber, pulp and fuel wood, thus reducing demand from natural forests. Most plantations in Kenya are found in the highlands between an alti- tude of 1,500 and 2, 500 metres. Over the years, the management of government forest plantations has not been optimal. The establishment of KFS paved the way for a more business-oriented management approach, but further steps are needed including put- ting the legal provisions for concessions into practice. Legal provisions for joint forest management are also applicable to plantations on public land but regulations for ben- efit sharing need to be developed. The underlying causes of deteriorating plantation forest management include limited participation by strategic stakeholders in conserving and managing forests, and access to forest resources for livelihoods (Mathu, 2011). Other causes include poverty and high dependence on natural forests for livelihoods, nat- ural disasters, unclear tree tenure systems, climate change, limited technology and expertise, inade- quate incentives, limited funds and tree growing as a business. The potential for expanding plantations within pub- lic forests is limited and plantation expansion will be through intensified plantation establishment on community and private lands. Occasionally, outgrow- er schemes may spur interest in forest plantation ventures. Dwindling supplies from State forests have led to increased prices of wood, thus making private plantation forestry a viable venture (Ruri Consult- ants, 2013). Enhanced plantation establishment will effectively be realised through availability of high quality tree seed for seedling production. Therefore, the Tree Improvement Programme in the country should be strengthened to introduce new commercial species and to substantially increase the supply of improved seed and clones to users. Objective: To increase and sustainably manage for- est plantations. Intervention strategies: Table 8.3 outlines the inter- vention strategies. National Forest Programme 2016–2030 77 Table 8.3. Plantation development: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Use superior germplasm to • Increased production of • % change in yield Disease and establish forest plantations forest plantations on public, • % change in quality pest outbreaks community and private lands • Tons of improved seed produced Forest fires • Diversified species of high performance and Invasive tree disease resistance species • Improved tree seed availed Climate change Develop and implement • Sustainably managed • No. of plans developed External of management plans for forest plantations and implemented interference public, community and • % reduction in soil loss and Resistance private forest plantations downstream siltation to change Diversify forest • More species for forest • No. of new species domesticated Inadequate plantation species plantations development • No. of new forest products funding • Diverse supply of forest products • % change in biodiversity index • Enhanced biodiversity Promote forest plantation • Increased production of • % increase in area of establishment and forest plantations on public, forest plantation management on public, community and private land • % Increase in supply of community and private land forestry products Involve private sector • Increased production of forest • % increase in forest in forest plantation plantations on public land products and services development through concessions or contracts Develop joint plantation • Joint management • No. of joint management management principles guidelines developed frameworks and practices Enhancement of forest • Increased capacity/ • % increase of area under extension services skills of farmers to grow trees on farms and manage trees • No. of forestry • Improved adoption of technologies adopted forestry technologies Establish and improve • Motor able forest roads • Km of new and forest infrastructure • Reduced fire damage rehabilitated roads • Km of new and rehabilitated firebreaks Implementation modalities: Depending on tenure, a range of stakeholders manage forest plantations — individuals, KFS, county governments, companies, institutions and communities. The forestry extension service under county governments will provide technical advice to tree growers. Research institutions, led by KEFRI as the focal point for tree improvement, will engage in diversifying commercial species and establishing seed stands and clonal orchards. Farmers and rural communities will produce seed- lings on their own nurseries using improved seed of suitable species. Farmers will also have access to improved planting material produced by commercial nurseries support- ed by the forest extension service. Development and use of public and private invest- ment models in plantation establishment and management (concessions, outgrower schemes and contract tree growing) will be promoted. For government land, plantation management should be based on best practices for economic viability. Concession man- agement of plantations is a viable model. Development and use of forest management plans for private forests is encouraged. Soil and water conservation measures as well as other environmental considerations will be applied irrespective of owner or manager. 78 1 FOREST 8.1.3 Dryland forestry development PRODUCTIVITY ASALs are rich in biodiversity and supply marketable forest products such as charcoal, timber, fodder and feed, gums and resins, aloe, essential and edible oils, fruits, honey and other food. However, they are frequently stressed by drought. Human migration from the high potential areas to the ASAL areas is noticeable. This Dryland forests migration has interfered with pastoral systems, causing ecological imbalances. Other constitute 49% of challenges facing dryland forests include overgrazing, soil erosion, spread of invasive species, bush encroachment, deforestation and desertification. This has further been Kenya’s forests. They exacerbated by other environmental factors like climate change. These factors have led comprise 2 million to the collapse of traditional systems of managing dryland forest resources. The dryland hectares of open forest is the major source of charcoal in the country, which is produced unsustainably leading to loss of biodiversity and degradation of natural habitats particularly for wild- woodlands, 3.5 million life and livestock. hectares of bushland and The highest poverty levels are found in some of the ASAL areas. Livelihoods in these 24.3 million hectares areas heavily depend on ecosystem goods and services related to forests and wood- of grassland (FAO 2010; lands. Any improvement in forest production potential will depend on clarifying land KWS, 2008). tenure rights, developing processing technologies and markets for non-wood forest products, and providing sufficient economic incentives. Managing the vast areas based Dryland forests play on a rangeland management approach constitutes the greatest potential for enhanced an essential role in the productivity of a kind that is relevant for local livestock owners and herders. Integrated livelihoods of over 10 rangeland management systems combined with improved forest resource governance can mitigate climate change, reduce disaster risks, and improve adaptation (Bernard et million people living in al., 2014). the ASALs. Objective: To sustainably manage dryland forest resources. Intervention strategies: Table 8.4 illustrates the intervention strategies. Implementation modalities: County governments will be the lead implementers of this programme with technical support from national government institutions. Table 8.4. Dryland forestry development: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Promote integrated • Improved livelihoods • % increase in household incomes Prolonged management of dryland • Increased tree cover • Area of established and droughts forests (traditional in dryland areas rehabilitated dryland forests Forest fires and conventional • Enhanced biodiversity • Increased productive management systems) use of invasive species Resource • Reduced spread of invasive (e.g. Prosopis sp.) conflicts among species, e.g. Prosopis sp. • No. of management plans communities • Woodland management plans developed and implemented developed and implemented • Traditional and conventional management systems integrated Expand commercial and • Increased productivity • Increased area under fodder trees in ASALs of rangelands tree growing • Increased household incomes • % increase in household incomes • Improved environmental • Increase in biodiversity resilience Sustainable harvesting • Improved livelihoods • % increase in household incomes and value addition of • Increased sustainable trade flows • % increase in trade products derived from • Diversified range of products • Increased number of products trees and forests Establish tree improvement • Sustained availability of • % increase of improved programme for the drylands superior germplasm germplasm used • Species diversification Promote efficient water • Increased technologies • % Increase in tree cover harvesting and management • Increased tree cover • Biodiversity index technologies for tree growing • Increased biodiversity • % increase of indicator species National Forest Programme 2016–2030 79 1 FOREST 8.1.4 Farm forestry PRODUCTIVITY Farmlands with trees or with a potential for agroforestry occupy about 10 million hec- tares—close to 18% of Kenya’s land area. The distribution of these areas matches the densely populated areas where the majority of Kenyans live. Between 1997 and 2012, the government enforced a timber-harvesting ban in State-controlled plantations (KEFRI, 2014). During that period, industrial wood was sourced from farms and supplemented with timber imported from neighbouring countries. Farmlands provide the greatest opportunity for expanding forests. The draft Forest Policy (2015) proposes the development of farm forestry as a way of increasing for- est cover, diversifying products for subsistence use and incomes while contributing to soil and water conservation. The policy underlines the importance of supporting farm- ers with sound management and utilisation principles, incentives, information, better germplasm and marketing strategies. Vision 2030 and the National Climate Change Response Strategy (NCCRS) have also placed similar emphases on the farm forestry’s contribution in conserving water resources. Limited access to markets and market information are the major challenges farmers face. The farm forestry sector could exploit several opportunities including limiting public land to tree growing, increasing interest in commercial tree growing on farms, availing markets for forest products, ensuring well-designed agroforestry systems are compatible with crop and livestock production, and selling carbon credits for additional income. Programme interventions will focus on developing fast-growing species with high mar- ket demand and their propagation and management practices, enhancing tree seed supplies at the local level, training/capacity building, developing on-farm efficient wood conversion technologies and promoting small and medium enterprises. Additionally, in lower potential areas the programme will focus on tree species that are suited to the sites to enhance resilience to climate change. Objective: To improve livelihoods and environmental resilience. Intervention strategies: Table 8.5 illustrates the intervention strategies. Implementation modalities: Tree growers associations, NGOs and national and county governments will be instrumental in providing training and extension on tree growing and use to farmers. These institutions will liaise with research organisations and insti- tutions of higher learning to source technical assistance on farm forestry technologies for dissemination. Where appropriate, support will be provided to establish tree out- grower schemes in collaboration with the private sector. The detailed technical contents of training and extension will be developed through participatory planning at sub-county level, with support from the county government and tree growers associations. 80 Table 8.5. Farm forestry: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Enhance forest • Increased capacity/ • % increase of area under extension services skills of farmers to grow trees on farms and manage trees • No. of farm forestry • Improved adoption of farm technologies adopted forestry technologies • Establishment of demonstration plots Develop and implement • Increased sustainable • % increase in quantity of a national strategy supply of forest produce forest products from farms for farm forestry • Increased household income • % increase in household income Acquire and avail superior • Increased seedling production • No. of seedlings produced tree germplasm at local level • Increased yields and • % increase in yields of diversified forestry products diversified forestry products Promote sustainable • Integrated innovative • No. of plans developed landscape development landscape plans developed and implemented approaches Develop public private • Enhanced stakeholder • No. of functional partnerships partnerships participation • No. of outgrower • Outgrowers schemes established schemes established Promote linkages between • Improved access to markets • % increase in income farmers and markets • Higher product prices for forest products Strengthen tree growers • Pooled resources for enhanced • % increase in income associations production and marketing Promote climate smart • Reduced erosion • % change in soil loss silvicultural practices • Enhanced water conservation • No. of soil conservation that enhance soil and • Enhanced farm productivity structures water conservation • % increase in farming outputs Promote use of ICT to value • Better priced products • % increased income and manage farm forests • Well managed forests Promote bamboo on farms • Uptake by farmers of bamboo • No. of ha planted with bamboo as a commercial crop National Forest Programme 2016–2030 81 1 FOREST 8.1.5 Forest health PRODUCTIVITY In Kenya, forests are occasionally threatened by unmanaged fires, pests and diseases. For example, over the last decade major fires burned Mt. Kenya Forest in 2012, 2014 and 2015. Fires have also occurred in other forests including the Aberdares, Mt. Elgon and the Mau. The frequent occurrence of droughts has compounded incidents of fires in forests. However, controlled fires may be used as a management tool to reduce the fire hazard by early burning of vegetation. Fires are also essential elements for the general ecological balance especially in dryland ecosystems. Many species in dryland forests rely on fires for pest control and even germination. Pests and diseases cause substantial destruction to all forests. However, losses are more pronounced in monocultures and in some exotic trees on plantations and farms. Indigenous trees do not suffer serious damage from pests or diseases. It is important to monitor, prevent and control pests or diseases outbreaks if and when they occur. Woody parasites are a category of emerging challenges to forest productivity and management of trees. Invasive species are major threats to forest productivity. Some of these species are Lan- tana camara, Acacia mearnsii, A. melanoxylon and A. nubica. With appropriate manage- ment techniques, some of these species can be transformed into livelihood-supporting enterprises. Climate change may alter the balance of forest ecosystems, making forests more sus- ceptible to pests and diseases in areas and situations where risks have so far been minimal. Increased risks are also associated with trade in wood or other plant material, in which new pests and diseases are brought in from abroad. Objective: To monitor and manage abiotic and biotic agents. Intervention strategies: Table 8.6 illustrates the intervention strategies. Table 8.6. Forest health: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Develop national forest • Damaging abiotic and • Maps indicating Porous borders health monitoring system biotic agents mapped extent of damage Climate change • Better understanding • Indicator species of forest health • Timely reports • A functional monitoring and assessment unit Prevent and manage • Reduced incidents of damaging • No. of pests and diseases biotic and abiotic impacts biotic and abiotic agents identified and managed on forest health in forest ecosystems • No. of incidents reported • Improved fire management and managed response • % reduction in incidents • Improved forest health of unmanaged forest • Increased forest productivity fires against baseline • No. of technologies/strategies developed and adopted • % increase in growth • % increase in yield of forest products • % reduction in forest degradation Promote disease and • Reduced incidence of • Increased growth and yield pest resistant tree diseases and pests species and clones 82 Implementation modalities: Implementation of this programme is multi-sectoral and multi-stakeholder in nature. Proper coordination of the players is essential. A relevant national institution will be identified to lead the establishment of the forest health monitoring and assessment unit. Firefighting capacities will be enhanced at the county levels including capacity building on how to prevent, suppress and control forest fires. Modern firefighting technology and equipment will be used to combat fires. Phytosanitary inspection of all imported planting and woody materials will be enhanced in collaboration with the relevant authorities. Field hygiene will be observed at all times to avoid pathogens breeding. Tree breeding will be carried out to propagate tree species that are resistant to attack by pests and diseases.

8.1.6 — National forest resources assessment and monitoring

8.1.6 National forest resources assessment and monitoring Sustainable forest management requires accurate information on forest and tree resources. Comprehensive and representative information provides a basis for nation- al-level analysis and strategic planning, and enables knowledge-based decision-mak- ing. Statistical information on forest cover and status provided over time increases knowledge of trends in forest development and understanding of interactions between forests and other land uses. Kenya’s commitment to international conventions and processes has further expanded information needs on forest resources. In these processes and in other international re- ports, such as FAO’s Global Forest Resources Assessment (FAO, 2010, 2015d), consistent and representative information on forest resources, products and services are required. The country has already committed to participate in REDD+ as a climate change mitiga- tion mechanism, a process that requires significant investment in the country’s capa- bility to assess forest resources. To meet future need for forest investment, information on forest resources will be availed including their extent; productive, protective and socio-economic functions; biological diversity; and health and vitality. Currently, gaps exist in information on forest resources in terms of quantity, quality, growth and yields. A national forest assessment and monitoring system will be es- tablished to fill in the information gap on forest and tree resources. Information from this programme will be used to package information to be used to prepare investment guides for potential investors and other interested parties. These guides will assist in attracting new investment in the forestry sector. Objective: To develop an integrated national forest assessment and monitoring system. Intervention strategies: Table 8.7 illustrates the intervention strategies. Implementation modalities: The programme is multi-sectoral and will therefore re- quire participation of relevant organisations with adequate capacity and resources. For effective implementation, the programme must at all levels be fully transparent and will require effective and efficient co-ordination from the ministry responsible for for- estry affairs. The counties will take responsibility for assessment and monitoring in areas under their jurisdiction. Table 8.7. National forest resources assessment and monitoring: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Establish national • Forest management • National forest inventory Conflicts amongst forest assessment and decisions informed by and monitoring reports implementers monitoring system accurate scientific data Undertake regular data • Accurate forest resoure • Functional forest Forest resource collection, analysis data available resource databases conflicts and dissemination • Improved national • Functional data forest inventory management systems Build capacity for assessing • Improved capacity in • Permanent staff working and monitoring forests forest inventory for the NFRAM unit • A functioning forest • Long-term data assessment unit collection ensured National Forest Programme 2016–2030 83 1 FOREST 8.1.7 Forest products development and value addition PRODUCTIVITY A favourable business and investment climate is critical for economic development, job creation and poverty reduction. This also applies in the development of the forestry sector, from tree growing to wood processing and product marketing—focusing on the whole forest value chain. The rationale is that a positive business climate accelerates forest investments, promotes good governance, generates rural employment, fosters wealth creation, and improves overall sector competitiveness and potentially creates wealth. The key to viable and profitable forest and wood production in Kenya lies in the ex- isting huge demand for wood and other products derived from trees and forests. This programme intendeds to support sustainable harvesting and processing to derive most value from forests. International competitiveness depends on productivity and its evolution. Productivity depends on continuous investment and enhanced operating conditions. Kenya is disad- vantaged as institutions handling taxes, trading across borders, starting and registering new business and enforcing contracts are weak (World Economic Forum, 2013, 2014). Investment in improved technology for post-harvest handling, management and pro- cessing and value addition will be promoted. Forest products will be standardised and certified to ensure that quality is not compromised. A competitive improvement pro- gramme will be launched including reforms to improve the business environment, with the aim to take the industry to a growth path. Use of appropriate technology will be promoted through training and technology development. Forest industrial training in- stitutions will be revived so that they supply highly qualified personnel, attractive for employment in the private sector. Objective: To increase efficiency in harvesting, processing and use of forest resources. Intervention strategies: Table 8.8 illustrates the intervention strategies. Implementation modalities: The government, tree growers, private sector and other relevant stakeholders will collaborate in reviewing marketing and other issues affect- ing forest industries. Log supply from public forests and licensing will be reviewed in a transparent and inclusive manner. Innovation centres will be established by relevant institutions in collaboration with the private sector and other stakeholders through research and incubation to encourage creativity. The formation of joint venture programmes between tree growers and forest industries will be supported. 84 Table 8.8. Forest products development and value addition: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Improve forest resource • Increased availability of • No. of value added Market failure value chain development quality forest products forest products Currency fluctuation • Diversified and commercialised • Increase in number of non- non-wood forest products, wood forest-based enterprises Unstable power including bamboo • % change in household income supply • Increased incomes Policy changes Develop efficient • Improved efficiency • % recovery rate Products forest industries and conversion rate • % increase in investment substitution in forest industry Illegal importation • % increase in number of of forest products skilled labour force Non-compliance Revitalise and modernise • Increased number of • No. of trained individuals skilled personnel with standards vocational training • % increase in supply • Improved productivity of forest products Strengthen forestry • Increased trade in forest • Increased access to markets processors and trade products and services • No. of product-based associations and • Increased investment marketing associations cooperatives opportunities and networking • % change in traded • Competitive pricing products and services of forest products Increase use of • Efficient processing • No. of improved technologies improved technology technologies for wood and • No. of new forest non-wood forest products products in the market • Diversified products in the market Develop appropriate • Faster refurbishment • Higher recovery, better and innovative financial and upgrading of the quality and higher mechanisms and linkages industrial capacity volume of production to other suppliers Promote use of indigenous • Diversified species • No. of indigenous species tree species -based products being used commercially National Forest Programme 2016–2030 85 STRATEGY

8.2 — FOREST GOVERNANCE

8.2 FOREST GOVERNANCE CLUSTER Forestry sector governance is defined as the modus operandi by which people, stake- holder groups and organisations acquire and exercise rights and authority in the man- agement of forest resources. Good forest governance is characterised by the prevalence of the rule of law, low levels of corruption, transparency in operations and financial matters, accountability, robust institutions, high competence of officials and other functionaries who implement rules, willingness and effectiveness to address forestry sector issues, sanctity of critical legal elements such as enforcement of property rights and agreements, etc. (Dixit, 2004; World Bank, 2009). Good forest governance is a central component in forest ecosystem management with- out which sustainable forest management cannot be attained. In the Kenyan context, good forest governance should be derived from the governance values expressed in the Constitution of Kenya (2010) and Vision 2030. The Forests Act, 2005 provided room for improved good governance that was further enhanced by the Constitution. Key areas proposed for intervention for enhanced good forest governance: • Aligning forest legislation with the Constitution and providing for policy, legal and institutional reforms that address emerging forestry issues, including climate change, while taking into account good practices at global, regional and national levels 86 • Establishing and strengthening forest governance structures and enhancing access to forestry information to ensure accountability, transparency and meaningful citizen participation • Strengthening capacity of forest institutions to deliver on their mandates • Reducing conflicts between industry, communities and governments at both national and county levels over resource management and benefit sharing • Providing for the active involvement of vulnerable and marginalised groups in the society • Enhancing forest law enforcement and compliance • In conjunction with the development of the national REDD+ strategy developing a system for information on status of environmental and social safeguards. Special attention will be paid to public participation where participatory approaches to forest conservation and management will be enhanced to ensure that the relevant gov- ernment agencies, county governments, private sector, civil society and communities are involved in planning, implementing and decision-making processes. Emphasis will be in the involvement in all levels of forest management of women, youth, people living with disabilities and marginalised groups in society.

8.2.1 — Challenges, situational analysis, and results framework

8.2.1 Challenges, situational analysis, and results framework Challenges: The thematic working group identified and grouped the challenges related to forest governance as shown in box 2. Situational analysis: Stakeholders carried out an assessment of stakeholders, iden- tified thematic challenges and undertook a comprehensive problem and situational 2 FOREST GOVERNANCE analyses to assess possible risks and op- portunities, causes, effects and strategic directions for forest governance. The SWOT Key challenges in forest governance analysis in Table 8.9 is a result of participa- tory stakeholder consultations. • Overlapping policies and institutional and implementation mandates and efforts resulting A results-based framework approach in conflicts in use of forest resources guided the formulation of detailed pro- • Weak adherence to policies on titling of grammes and strategies for addressing forest land and unclear user rights forest governance challenges and imple- mentation modalities. • Challenges of devolution bring on board more forest stakeholders with more and divergent Results framework: Table 8.10 presents interests in forests and forest land the strategic planning framework for this • Weak dissemination strategies for forestry matters thematic cluster. among lead agencies and all stakeholders Programmes within this thematic cluster: • Lack of a stakeholders’ forum that meets regularly • Policy, legal and to discuss issues affecting the forestry sector institutional reforms • Inadequate investment and funding • Forest information management capacities to manage forestry and dissemination • Weak forest governance mechanisms to address • Community, gender and issues related to poverty, climate change special interest groups in and natural resource-based conflicts forest management • Weak compliance and enforcement regimes that • Forest law enforcement accelerate encroachment, forest degradation and and compliance. general noncompliance with regulatory requirements • Inadequate mechanisms for involving the private sector, gender, youth, forest-dependent communities in the use of forest resources and sharing of benefits • Vested interests, rent seeking and patronage. National Forest Programme 2016–2030 87 2 FOREST GOVERNANCE Table 8.9. SWOT analysis for the forest governance cluster. STRENGTHS WEAKNESSES • Supportive Constitution and other legal • Weak coordination and synergy of frameworks for arbitration and legal redress institutions, programmes and projects • The Kenya Vision 2030 recognises forestry in managing forest ecosystems development as one of its flagship projects • Lack or unclear forest boundary demarcations • The legal framework supports stakeholder and titling of forest land, and unclear land participation in forest management tenure rights for forest-dependent communities • Kenya has ratified and is party to several • Weak compliance and enforcement MEAs on forestry and climate change regimes that accelerate encroachment, deforestation and general non-compliance • Forestry sector reforms under the with regulatory requirements devolved government framework are supportive of good forest governance • Unclear mechanisms for involving the private sector, gender, youth, forest-dependent • The existence of supportive civil society communities, and in sharing costs and benefits (NGOs, community-based organisations and faith-based organisations). • Overlapping and conflicting laws, roles and responsibilities amongst natural resource based institutions (jurisdictions) • Inadequate information dissemination strategies • Undervaluation of the forestry sector’s contribution to national economic development • No forum for stakeholders to discuss issues. OPPORTUNITIES THREATS • Ongoing alignment and formulation of laws • Vested interests, interference and patronage and policies under the Constitution of Kenya • Existence of conflicts in management of forests • Investment opportunities and involvement in • Deliberate forest fires (arson) forestry by NGOs, CBOs and private enterprises • Limited livelihood streams creating • Existence of the East African Community pressure on forests as a platform to champion development of transboundary resource management • Regional disparities in the management strategies of transboundary • Existence of PPP principles in forestry forest resources development, product harvesting and processing • Insecurity limiting management and • Synergy of programmes with other existing access to forest resources NRM governance structures strengthening the ecosystem approach to forestry management • Illegal exploitation and trade in forest resources. • Recognition and application of indigenous knowledge systems for forestry management • Harmonisation of policy frameworks at national and county levels. Table 8.10. Thematic objectives, outcomes and indicators. Thematic objective Outcomes, 2016–2030 Indicators of achievement Strengthen Long term (2030) • % change in ecological, economic forestry Strengthened policy, legal and institutional and social benefits accruing from frameworks that include gender mainstreaming, good forest governance governance equity, stakeholder participation and address • Evidence of mainstreaming gender systems for emerging issues for effective forestry development and cross-cutting issues in all sustainable activities of the forest sector environmental, Medium term (2025) • Access rights to forest resources economic and recognised and regularised Operational frameworks for forest development, social benefits investment, access rights, equity, accountable leadership; participatory forest management that includes forest-dependent communities Short term (2020) • A functional framework for engagement Formulated, aligned and harmonised policy, between county and national legal and institutional frameworks on forestry governments on forestry matters matters in national and county governments 88

8.2.2 — Policy, legal and institutional reforms

8.2.2 Policy, legal and institutional reforms The Constitution of Kenya has catalysed the realignment of policies with legal legis- lations. This in turn has led to the revision of the national Forest Policy, 1968 and the Forests Act, 2005, and culminated in the development of the draft Forest Policy (2015) and the Forests Conservation and Management Bill, 2015. Several challenges encountered in forest resource management are linked to weakness- es in institutional arrangements in the forestry sector. In terms of mandates, some for- ests in the country are under dual and tripple gazettement. Furthermore, a non-partic- ipatory planning process for urban and infrastructure development, mining, agriculture and settlements has resulted in loss of forest cover. The devolution of some forestry functions from national to county governments calls for the design of effective and harmonised forest governance structures at both levels. Illicit timber trade within and across borders including management of transboundary forest resources remains a challenge. The policy, legal and institutional reforms programme has been designed to create or enhance an enabling environment which is a prerequisite for implementing several other programmes under the NFP. Important issues requiring attention under this programme to facilitate other NFP pro- grammes: • Development of the forest policy and legal framework (Forest Act, Forest Policy and Forest Bill). • Assessment of the roles of KFS to clarify and separate regulatory, implementation and law enforcement roles. • Creation of an enhanced enabling environment for commercial tree growing, including providing incentives for farm forestry and private sector engagement in plantation enterprise development. • Addressing resource issues in the ASALs with the aim of clearly linking local resource rights to resource users. • County governments are currently developing county-specific laws. • Further legalisation and enhanced regulation of the charcoal industry to pave the way for development of technology and efficient value chains. • Benefit sharing procedures and principles applied in joint forest management. • Constraints facing potential investors in forest industry. • Restrictions that are occasionally applied on the use of forest resources. In institutional reforms, a key development area is designing and operationalising in- stitutional arrangements that can shoulder the mandates devolved to counties. Urgent action is needed to specify the division of responsibilities between the national and county governments and their respective institutions. Objective: To create an enabling environment and legal frameworks for good forest governance. Intervention strategies: Table 8.11 illustrates the intervention strategies. Implementation modalities: The strategies identified will be implemented by forest stakeholders in accordance with the Constitution of Kenya. The review of existing poli- cies and laws will be informed by needs assessment and enhancement to fill gaps iden- tified by stakeholders — politicians, opinion leaders, county government and the general public. Capacity building of the county governments to take up the devolved roles will be given priority; this will require the concerted efforts of government agencies, the civil society and development partners. National Forest Programme 2016–2030 89 Table 8.11. Policy, legal and institutional reforms: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Review and harmonise • Roles of national, county • No. of harmonised Changing existing policies governments and institutions laws and policies. priorities with and legislation clarified, including changes in segregation of duties governments Develop and strengthen • Reduced conflicts in • No. of documented conflicts Politicisation natural resource conflict the forestry sector and interventions of forest resolution/ management • Formalised structure and • No. of platforms to governance mechanisms division of mandates in address conflicts in county conflict management both at and national levels county and national levels. • Public complaints mechanisms operational at county and national levels Domesticate international • Forest laws consistent • Increase in the no. of commitments and with relevant international international commitments obligations into forest commitments and emerging and obligations mainstreamed issues in forestry into Kenyan laws laws as well as emerging issues in forestry 1) Develop capacity to support • Reduced corruption in • % increase in performance of enforcement of the rule of the forestry sector forest administration institutions law and reduce corruption • Robust national and county • % work environment satisfaction institutional governance • % public satisfaction structures that deter corruption and mismanagement • % efficiency in service delivery • Improved infrastructure at national and county levels • Zero tolerance to corruption 1 ) These include (i) Recognition of gender, rights of vulnerable, marginalised and indigenous forest people in the society, (ii) Community forestry, (iii) REDD+ implementation, (iv) Green/bio-economy development, (v) Enhancing forestry competitiveness (vi) Cost/Benefit sharing in the forest sector and (vii) Integration of indigenous knowledge in forest conservation and management.

8.2.3 — Forest information management and dissemination

8.2.3 Forest information management and dissemination Sustainable forest management can be achieved only if forest decisions are informed by high quality forestry-related information. Access to and provision of quality forestry information therefore is a priority. Information management involves the acquisition, synthesis and sharing of insights and experiences, and their systematic integration with factual statistical information and analyses. Kenya is signatory to a number of multilateral environmental agreements and treaties and is therefore obliged to report on the status of its forest resources. This implies developing strategies to generate and manage forest information and dissemination in the open national and global domains. The devolved government structure working through national and county institutions will generate more information and knowledge on managing forest resources. This is in addition to information generated by communities, research and institutions of higher learning as well as projects. Strategies for disclosing of public information on forest resources and their use, including related financial flows, will be developed to ensure that all actors in the forestry sector have sufficient information to fully play their roles. In addition, knowledge management embracing information technology will be of ut- most priority. Relevant policy and guidelines for inter-institutional data sharing will be developed with clear directions on the nature of information and the manner in which it is shared. Of critical importance is the adoption of ICT for efficiency and widened scope of information sharing. 90 2 FOREST GOVERNANCE Objective: To effectively manage forest information for enhanced access. Intervention strategies: Table 8.12 illustrates the intervention strategies. Implementation modalities: Implementation of the programme will require a partici- patory approach, recognising that different stakeholders generate different datasets on either similar or different parameters. County governments’ information units will be linked to the national information unit at the Kenya Forest Service headquarters. The various entities generating data will be managed in a manner that ensures information is generated and easily accessible. Therefore setting up an information collection and public disclosure mechanism will be built on principles of good governance, and with support from major stakeholder segments and have long-term funding. The information management unit or a credible entity will play the coordinating role. Table 8.12. Forest information management and dissemination: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Develop broad-based • Increased disclosure of forest • % increase in the no. of Some forestry information information to stakeholders stakeholders accessing stakeholders management systems and • Functional platforms for forestry information may be dissemination networks information sharing nationally • No. of information sharing unwilling and at county level platforms in place to share • Clearly mapped information • No. of men and women knowledge and flow structure accessing and using information information • Forest information accessible centres and platforms they know or at forest information centres • Functional county forest generate in all the counties information centres Cyber-crime, Enhance forestry • Developed models/tools of • Increase in stakeholder information knowledge management information management satisfaction in hacking and reporting system and dissemination information sharing • Transparent information • No. of models developed sharing between regions, • No. of validated tools developed counties and forest stations Establish and implement • Operational national and county • % increase in number of a policy and mechanisms communication strategies stakeholders accessing for geo-referenced data for enhanced stakeholder forestry information participation in decision making • % increase in number of and information sharing including intellectual • Enhanced access to accurate, up registered intellectual to date and timely information property rights property rights for informed decision making • Enhanced registration of intellectual property rights National Forest Programme 2016–2030 91 2 FOREST 8.2.4 Community, gender and special interest groups in GOVERNANCE forest management Public participation is a major component of good governance and it goes hand in hand with accountability and transparency. The Constitution of Kenya, Article 69(1) (d) states: “the State shall encourage public participation in the management, protection and con- servation of the environment.” In the Fourth Schedule part 2, the Constitution mandates county governments to ensure and coordinate the participation of communities in gov- ernance at the local level. Further, under the Bill of Rights, Article 21 (3) provides that: “All State organs and all public officers have the duty to address the needs of vulnerable groups within society, including women, older members of society, persons with disabil- ities, children, youth, members of minority or marginalised communities and members of particular ethnic, religious or cultural communities”. Pursuant to these provisions, programmes and activities that support forestry stake- holders’ participation in forest management will be developed under this programme. Forest management in Kenya was highly centralised between the pre-independ- ence period up to 2007 when the Forests Act, 2005 came into force. This Act puts in place a more devolved forest governance structure. At regional level (conservancies), forest conservation committees (FCCs) have been established in 10 conservancies and community forest associations (CFAs) formed in the existing 150 forest stations countrywide. However, stakeholder participation has not reached the levels envisaged in the Consti- tution. Community and county institutions involved in forest management still need their capacities built and a benefit-sharing framework has not been developed. These critical elements of forest governance will have to be pursued to conclusion. The pro- gress and a general rolling out of PFM is also hampered by the slow progress in pre- paring a management plan. The focus and disagreements on benefit sharing and lack of alternatives to the PFM are threatening this system’s success and the wider forest development. In the context of this NFP, participation refers to community participation in the management and utilisation of national gazetted forests. Objective: To improve stakeholders’ participation in sustainable forest management. Intervention strategies: Table 8.13 illustrates the intervention strategies. Implementation modalities: The strategies will be implemented through a mul- ti-stakeholder process with the national government, county governments and civil so- ciety playing a major role in creating awareness and building capacity of the public and special interest groups. Development of standards for good forest management, criteria and indicators for SFM, and tools to monitor implementation of forest management plans will require genuine participation of civil society, private sector, communities, national and county governments. 92 Table 8.13. Community, gender and special interest groups in forest management: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Improve community and • Improved decision making • % reduction in conflicts Vested interests special interest groups’ and better managed forests between communities and other stakeholders Unwillingness participation in decision • Reduced conflicts by special making in the forestry sector between communities and other stakeholders interest groups to participate • Communities exercising their rights and obligations • Benefit sharing generates community ownership Develop mechanisms • Public-private partnerships • % increase in the number of for forest incentives to formalised and strengthened PPPs involving communities boost private forestry to leverage community in private forestry and special interest group • % increase in investments and enhancement of participation in private forestry in private forestry stakeholder participation • Enhanced ease of doing • % increase in the area of business in the forestry sector commercial private forests • Increased area of commercial • Amount of income generated private forests • System established for REDD+ payments Capacity and business • Participatory Forest • % increase in CFAs and development for CFAs, Management Plans effectively other community groups special interest groups implemented in all forest areas fulfilling their mandates • Community institutions under the forest management and other forestry capacity to deliver on their agreements signed with forest based associations administration institutions mandates enhanced Support and promote • Increased nature-based • % increase in household income forest related community community enterprises from forest related activities livelihood options. • Reduced pressure on • % increase in the forests for supply of forest number of nature-based products and services community enterprises Affirmative action by forest • Increased forestry programmes • No. of programmes administration institutions targeting women, youth implemented by women, youth on special interest groups’ and marginalised groups and the marginalised groups participation in forestry • Increased number of women, • Proportion of women, youth youth and marginalised groups and marginalised groups actively and continuously in the total labour force engaged in forestry engaged in forestry activities Develop mechanisms to • Increased level of human • Level of human rights support human rights in rights awareness among duty awareness forestry development bearers and rights holders • Evidence of institutionalised • Rights-based approach consultations between institutionalised in authorities with responsibilities the forestry sector for access to forest resources and communities • Reduced conflicts between duty bearers and rights holders National Forest Programme 2016–2030 93 2 FOREST 8.2.5 Forest law enforcement and compliance GOVERNANCE Though the legislative framework guiding the management and use of forest resources is adequate, violations continue due to the following implementation challenges: • Weak forest administration institutions in forest law enforcement and compliance • Poor infrastructure • Low level of stakeholder participation in decision- making processes and forest monitoring • Inadequate information on illegal activities in the forest • Low levels of awareness of the impacts of forest destruction Once these concerns are addressed, it is envisaged that there will be near full compli- ance with the forest law. Objective: To ensure compliance with forest legislation. Intervention strategies: Table 8.14 illustrates the intervention strategies. Implementation modalities: The Constitution will be the reference document guiding all compliance and enforcement strategies and mechanisms developed and implement- ed by forest governance stakeholders. Existing compliance and strategy implementa- tion will be reviewed through capacity needs assessment and enhancement to fill the gaps identified in the diverse enforcement and compliance entities (units) with stake- holders (State and non-state actors) actively involved. Successful implementation of this programme will require sustained resources. While this is a government-driven programme, resources from development partners will complement agency and gov- ernment funding particularly for cross-border illegal activities and community policing. 94 Table 8.14. Enforcement and compliance: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Improve public awareness • Increased public support • % decrease in the number Cyber crime of the impacts of illegal for forest protection of illegal forest activities reported by the public Unsupportive forestry activities • Enhanced forest productivity regional and integrity • % reduction in degraded forest areas partners Blacklisted Build capacity of institutions • Enhanced compliance with • % reduction in number of forest- firms will go in law enforcement forest laws and regulations related offences reported to court and compliance • Reduced opportunities for • Reduction in time taken to committing illegal forestry acts institute remedial measures • Timely and effective control of illegal forest activities • Reduced forest-related crime rates Improve data and knowledge • Enhanced real time data • % decrease in occurrence about the extent, location capture for decision making of illegal activities and nature of legal • Forest protection priority areas • Reduction in time taken between and illegal activities in mapped and inform planning committing the offense and the forestry sector • Precise and rapid response the response by enforcers by institutions to reported cases of forest offences Develop regional • Strengthened cross-border • % reduction in illegal partnerships to control protocols on law enforcement cross-border activities transboundary forest crimes and compliance • Cross-border illegal activities minimised Develop a regulatory • Regulated international trade • Existence of a regulatory framework in forest products (FLEGT) framework (e.g. FLEGT) for international • Increased access to forest • Volume of traded forest trade in forest produce products in the global market products internationally Develop national criteria and • Enhanced sustainable • % reduction in degraded indicators for sustainable forest management forest areas forest management and • Increased market for • Proof of chain of custody embrace forest certification forest products and traceability • Reduced deforestation and forest degradation Promote and support • Reduced cases of • No. of cases reported by community forest policing forest destruction community members • Enhanced ownership and protection of forests Develop partnerships • Increased transparency • % reduction in number Unsupportive between the public forest and accountability of offences reported civil society administration and civil • Acknowledgement of society or private sector to whistle blowers monitor law compliance with the forest sector Blacklist firms engaged • Increased transparency • % reduction in number of in illegal activities and accountability in offences recorded among the forest industry forest industry players National Forest Programme 2016–2030 95 STRATEGY

8.3 — NATURAL FOREST

8.3 NATURAL FOREST MANAGEMENT AND CONSERVATION CLUSTER This thematic cluster addresses sustainable management and conservation of natural forests and allied resources for socio-economic development and provision of environ- mental services. Natural forests provide a wide range of economic, environmental and social products and services such as raw materials for wood-based industries, employment, soil stabili- sation, carbon sinks and water catchments. Forests regulate the rate of flow and quality of water discharged by rivers draining from these catchments. Forests play a key role in supporting other productive sectors including agriculture, tourism and energy. They also enhance the environment’s ability to withstand disasters such as floods, landslides and droughts. Nonetheless, population growth and other socio-economic factors have put enormous pressure on the limited productive land, subsequently leading to rural poor households encroaching on forest land. Land-use changes, mainly settlement and illegal cultiva- tion, charcoal making, overgrazing and over-exploitation of some plant species, have further resulted in forest degradation (KFS, 2009). Other contributing factors include loss of 3 NATURAL FOREST MANAGEMENT AND CONSERVATION indigenous knowledge on plant use, lack of appropriate conflict-resolution mecha- Key challenges in natural forest management and conservation nisms, inadequate knowledge of the role of forests in climate change, value of for- • Forest ecosystem degradation resulting in ests not well understood and appreciated, low provision of goods and services weak administrative structures and institu- • Overgrazing and forest fires tional framework for conservation. In cases • Loss of endangered/threatened species, where forests are located across interna- also within protected areas tional boundaries, no clear and appropriate • Encroachment on natural forests guidelines are in place to promote joint management mechanisms. • Preference for agriculture vis-à-vis forestry or nature conservation Selective harvesting methods in our indig- • Rise in poverty levels enous forests will be used to improve or maintain overall biodiversity while increas- • Lack of community incentives for conservation efforts ing site productivity. Selective harvesting • Cultural erosion of the value of forests including will be designed to ensure that natural indigenous knowledge of plant use regeneration occurs. Some natural forests • Inadequate knowledge of the role of forests will be excluded from timber harvesting as in climate change mitigation other values, like water catchment protec- • Increasing need for energy (wood fuel and charcoal tion that is more important than the po- production) is challenging conservation tential timber output, could be jeopardised should logging be allowed. • Uncoordinated sectoral implementation approaches • Conflicts of interest on the management Other forms of utilisation like collecting of forest ecosystems non-wood products are usually compatible with even strong conservation objectives. • Weak administration structures and institutional framework for conservation. Forest conservation requires holistic ap- proaches, good conservation strategies and implementation mechanisms. 96

8.3.1 — Challenges, situational analysis and results framework

8.3.1 Challenges, situational analysis and results framework Challenges: The thematic working group analysed and grouped the challenges present- ed in box 3. Situational analysis: Further analysis of the theme resulted in a SWOT analysis pre- sented in Table 8.15. Results framework: Table 8.16 presents the strategic planning framework for this the- matic cluster. Effective protection, conservation and sustainable management of natural forest eco- systems will be addressed through the following programmes within this cluster: • Natural forest management • Ecotourism • Community forestry. Table 8.15. SWOT analysis for natural forest management and conservation cluster. STRENGTHS WEAKNESSES • Documented indigenous knowledge on • Inadequate infrastructure and sustainable forest management is available facilitation for forest management • Willingness to adopt new technology • Inadequate public participation • Existing renewable energy sector in forest conservation reducing pressure on forest resources • Inadequate law enforcement • An applicable legal framework that demands • Weak implementation of existing sustainability, participation and transparency policies and guidelines • Competent technical and professional human • Low understanding of consequences resource in forest conservation and management of forest destruction • Existing natural forest reserves • Poor appreciation of the links between • More institutions to protect natural forests conservation, biodiversity, heritage and livelihood • Improved surveillance and management capacity for natural forests OPPORTUNITIES THREATS • Existence of forest areas for conservation • Climate change • Global attention on sustainable energy • Negative political influence use and forest conservation • Forest fires, diseases and pests • Research information available • Conflicts arising from over-riding interests • MOUs, conventions/treaties for ecosystems • Over-dependence on natural forest • Vision 2030 and Constitution supporting resources and agriculture expansion sustainable forest conservation and management • High increase in human population, • Development of scientific knowledge on yield thus increased demand for land and quality of indigenous tree species • Fragmented forest ecosystems. • Existing technological innovations on ICT • Increased recognition of government policies of natural forests for environmental benefits • Available modern technologies that improve natural forest management • Community goodwill for conservation • Existing agreements on transboundary forests • Legal structure for community participation • Opportunity for carbon credit schemes. National Forest Programme 2016–2030 97 Table 8.16. Thematic objectives, outcomes and indicators. Thematic objective Outcomes, 2016–2030 Indicators of achievement Sustainable Long term (2030) • % change of natural forest area management of Sustainably managed natural forest managed and conserved natural forest and woodland resources • Change in Biodiversity index ecosystems • Change in number of visitors to ecotourism facilities Medium term (2025) • % change in natural forest Increased total natural forest area and tree cover area and tree cover • % increase in carbon stocks in natural forests Short term (2020) • Proportion of degraded forest Reduced degraded natural forest areas area rehabilitated Urban forestry offers a forest development model that could bene- fit the increased urban population through de- veloping the aesthetics of towns and cities as well as promoting urban recreational values. 98 FOREST 8.3.2 Natural forest management 3 NATURAL MANAGEMENT AND Natural closed-canopy forests occur mainly in water catchment areas and are habitats CONSERVATION for wildlife, which support the tourism industry, and provide useful commercial timber and non-timber products. Forest cover in Kenya has decreased rapidly in the last 20 years due to population pressure and development-related activities such as agricultural ex- pansion (KEFRI, 2014). This has reduced the ability of these forests to supply products and serve as water catchments, biodiversity conservation reservoirs, wildlife habitats and carbon sinks. Natural forest management and conservation activities will synergise well with Kenya’s national approaches to addressing projected climate change impacts. The programme focuses on developing and applying methods to restore forests, moni- tor regeneration and growth of natural forests, and enhance biodiversity conservation. Conceptually, this programme applies to over 800,000 hectares of gazetted natural for- ests. Objective: To manage natural forests for sustainable production of goods and services. Intervention strategies: Table 8.17 illustrates the intervention strategies. Implementation modalities: Communities, the private sector and other stakeholders in natural forest management and conservation will be encouraged to participate to conserve water catchment areas, exploit the potential to sequester carbon, create em- ployment, reduce poverty and ensure sustainability of the forest resources. Table 8.17. Natural forest management: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Forest conservation, • Increased carbon stocks • % change in natural forest Forest fires restoration and management • Reduced degraded area managed and conserved Pests and based on best practice natural forest areas • Change in biodiversity index diseases • Increased provision of • % change in natural forest forest-related services area and tree cover Non- conducive • Increased biodiversity, including • % increase in carbon stocks wildlife, and value of the forest political environment • Database on natural forest established and updated regularly • Well conserved public forests Promote participatory forest • Increased carbon stocks • Proportion of degraded management through CFAs • Reduced degraded forest area rehabilitated natural forest areas • Increased carbon stocks • Increased provision of forest related services • Increased biodiversity • Well-conserved public forests • Increased income and living standards for the local communities Sustainable conservation • Enhanced conservation • Area under sustainable utilisation and management and sustainable use of • Area rehabilitated/planted of wetland forests mangrove forests (including mangroves) Sustainable management • Improved supply of • No. of bamboo products of bamboo bamboo materials • Area under sustainable utilisation Promote development • Developed urban forests • % change in urban tree cover of urban forestry in • Enhanced aesthetic collaboration with value of urban areas county governments • Urban forestry integrated into county forest programmes National Forest Programme 2016–2030 99 FOREST 8.3.3 Ecotourism 3 NATURAL MANAGEMENT AND Ecotourism is a potential investment opportunity for the forestry sector. Increasing CONSERVATION numbers of tourists want to interact with local communities and to stay in places that positively impact on both the environment and the local population. Public–private part- nerships (PPPs) can bring incentives and benefits to communities through nature-based tourism. Forests offer a wide range of activities for tourists such as nature trails, picnic and camping sites, heritage and cultural sites. Creating specific areas with unique fea- tures within forest areas as national forest parks for ecotourism will be encouraged. Objective: To promote nature-based tourism for enhanced conservation of natural for- ests and improved livelihoods. Intervention strategies: Table 8.18 illustrates the intervention strategies. Implementation modalities: Ecotourism will be promoted through public–private part- nerships including communities or private initiatives. Table 8.18. Ecotourism: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Develop ecotourism • Increased and diversified • No. of ecotourism facilities Political in natural forests tourist attraction sites instability Develop tourism facilities • Improved infrastructure • No. of ecotourism Terrorism in designated natural in ecotourism areas facilities established forests through PPP • No. of ecotourism Economic PPPs established recession Promote ecotourism • More visitors to natural • % increase in income investments in forest parks in addition from domestic and natural forests to regular tourists international tourists 100

8.3.4 — Community forestry

8.3.4 Community forestry Globally, forest management on government and community lands is implemented through the State such as through a joint forest management system like Participa- tory Forest Management (PFM) or through community management regimes such as community forestry. The rolling out of PFM has been successful in some places, but has been hampered in others by minimal revenue streams, disagreements on benefit shar- ing and lack of alternatives, among others reasons. While PFM is still developing, community forestry offers a viable and well-tested alter- native to existing forestry models applied in Kenya. Community forestry could be an al- ternative forest development model for equitable and sustainable forest management whilst strengthening community rights and livelihoods. Policy and regulatory framework on community forestry should be in place and should provide for long-term equal rights, responsibilities for all actors, fair benefit sharing mechanisms, base for good governance, participatory principles and institutional sup- port. Advantages of community forestry • Creates employment, improves forest access and livelihood • Allows increased capacity for local decision making • Provides increased community ability to handle forest conflicts due to increased empowerment in community forestry rules • Catalyses long-term community economic development resulting in increased self-reliance • Provides better protection of forest ecosystems and plantations • Is more inclusive as it provides a forest management plan that is made and understood by the community • Leads to improved community cohesion and awareness of forest management. Objective: To establish community forestry for environmental and socio-economic ben- efits. Intervention strategies: Table 8.19 illustrates the intervention strategies. Implementation modalities: Most areas with potential for community forestry are nat- ural forests, woodlands outside gazetted forests, and forest sites in need of rehabilita- tion or reforestation. In the devolved governance system, community forestry may open up new opportunities for introducing successful forest development models. Communi- ty forestry will be facilitated by county governments, KFS, KEFRI and other government lead agencies. NGOs will facilitate and provide technical assistance. Table 8.19. Community forestry: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Development of community • Developed community forests • No. of community forests developed forestry through a • Increased benefits to communities • % household income from participatory process • Better managed forests community forestry • Enhanced ecosystem • Community appreciation products and services of the scheme A plan stating the criteria, • Sustainable forest management • No. of hectares under community sequence and priorities for in those sites where community forestry in 2020, 2025 and 2030 rolling out and implementing forestry is recognised as the most promising approach to community forestry sustainable forest management National Forest Programme 2016–2030 101 STRATEGY

8.4 — FOREST FOR WATER

8.4 FOREST FOR WATER CLUSTER Well-managed forests guarantee the availability of good quality and sustainable supply of water. Forested water catchments (“the water towers”) are part of the global water cycle that guarantees supply of water for industrial, agricultural and domestic use. Forests play important roles of generating and purifying in the water cycle and its com- ponent processes. However, human activities in forest areas have continued to pose major threats to water availability and quality due to forest degradation, pollution, poor farming practices, and misuse and overuse of water resources. These and other chal- lenges are identified here together with possible strategies for collective intervention to safeguard water security. Better understanding and management of biophysical link- ages (interaction of trees, forests and water) is essential for developing intervention measures to address the identified challenges, including formulation of forest policies relating to water. This thematic cluster complements and is closely linked to the natural forest manage- ment and conservation thematic cluster. However, the Forest for Water theme focuses on management of water sources and their immediate surroundings. Monitoring trends in water quantity and quality from forests is a key activity to identify impacts of anthropogenic interferences as well as climate-induced changes. The latter include impacts of deforestation, which generally increase flash floods while decreas- ing minimal flows during dry seasons. Dialogue between water users, forest users and managers is therefore critically important for informed decision-making in source de- velopment, management and water security. 4 FOREST FOR WATER Key challenges • Uncontrolled human activity leading to disturbance in forest water cycles and ecosystem services • High demand for water due to rising population • Conflicting laws, policies and sector roles and mandates on water and forest • Interference in forest and water management • Inadequate data on water quality and quantity from water towers • Inadequate data on water supply and demand under a climate change regime • Encroachment into some forest and water catchment areas • Inadequate cost and benefit sharing mechanisms for water usage (payment for ecosystem services) • Insufficient application of soil and water conservation measures in farming, logging and road construction • Limited use of new technologies. 102

8.4.1 — Challenges, situational analysis and results framework

8.4.1 Challenges, situational analysis and results framework Challenges: The thematic working group identified and analysed challenges presented in box 4. Situational analysis: The SWOT analysis in Table 8.20 presents further analyses of the thematic challenges. Results framework: Table 8.21 presents the strategic planning framework for this the- matic cluster. This theme is addressed through two programmes: • Watershed conservation and management • Soil and water conservation. Table 8.20. SWOT analysis for the forest for water cluster. STRENGTHS WEAKNESSES • Supportive constitution and other • Inadequate knowledge of interactions legislative frameworks between forests and water • Existence of relevant institutions governing • Inadequate resources forest and water resource use • Uncoordinated efforts among actors • Availability of a knowledgeable • Weak law enforcement, non-compliance human resource base • Poor governance • Water sources available (water towers) • Conflicting laws, policies and sector mandate • Goodwill from the government and development partners • Inadequate data on water quality, quantity and distribution • Indigenous knowledge on water and forest management. • Lack of cost and benefit sharing mechanism. OPPORTUNITIES THREATS • Increased interest by government agencies, • Inter- and intra-community conflicts over water private sector and donors in water management • Unpredictable impacts of climate change • Awareness of the linkages between • High population growth rate forest and water availability • Unsustainable exploitation and uncontrolled • Improved management of quality human activities in water catchment areas and quantity of water • Water over-abstraction • Increased adoption of water management technologies • Land use change in forest and water catchment areas. • Improved technologies on hydrological survey. Table 8.21. Thematic objective, outcomes and indicators. Thematic objective Outcomes, 2016–2030 Indicators of achievement Sustainably manage Long term (2030) • % increase in proportion of forest area water resources and managed primarily for water protection Increased water quantity and their catchments quality from catchment areas • % increase water quality and quantity from catchments Improved management of catchment areas Medium term (2025) • % increase in areas declared fragile under water-related Acts Reduced cases of forest destruction and degradation in catchments • % reduction in grazing in sensitive catchment areas Enhanced data acquisition and management • % adoption of water on forest and water resources harvesting facilities by forest- adjacent communities Short term (2020) • Increase in no. of stations measuring water quality and quantity Framework for collecting and archiving information established National Forest Programme 2016–2030 103 4 FOREST 8.4.2 Watershed conservation and management FOR WATER Degradation of water catchment areas has caused increased run-off, flash flooding, reduced infiltration, and erosion and siltation, which in turn degrade water resources. These factors threaten the hydrological functioning of forest–water interactions. Lack of an integrated approach and appreciation that forests and water are closely linked adversely affects life support systems, diminishing water availability and volume and causing receding of water bodies. This situation is compounded by inadequate information, knowledge and understand- ing of the sustainable use of forests and water resources. Inventorying, assessing and establishing an information management system will help define the current status of these resources and also lead to a better understanding of the factors, both internal and external, that contribute to negative trends. This programme will address the impor- tance of protecting watersheds and the immediate surroundings. It will also focus on watershed studies to establish the sta- tus of catchment areas in terms of extent, composition and water discharge. More- over, the programme will prioritise local challenges and implement actions for to improve them. Objective: To rehabilitate and manage wa- ter catchment areas. Intervention strategies: The intervention strategies are illustrated in Table 8.22. Implementation modalities: This pro- gramme will be implemented in collabora- tion with the relevant lead agencies and with the participation of other stakehold- ers. Water resource users associations (WRUAs), which are capacitated to handle the day-to-day issues arising in any water supply scheme, will also be one of the im- plementing actors. Table 8.22. Water source conservation, protection and management: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Watershed management • Reduced destruction of • % increase in water flow and Inter and intra- catchment areas recharge per unit time community • Improved flow, quantities • Number of reported incidents conflicts and quality of water of forest degradation from catchments and destruction Climate change impacts, e.g. • % increase in acreage of protected areas desertification, diminishing Enhance water availability • Reduced water shortages • No. of water resource water sources, and accessibility and conflicts over water users associations drought, flooding • Improved livelihoods (WRUAs) established • Reduced distance to • No. of income-generating water points activities established • No. of men and women benefitting from better quality and quantity water supply Enhance water quality • Reduced incidents of • % decrease in cost of and surveillance for water-related diseases producing drinking water improved health and • % decrease in frequency cleaner environment and severity of water- related diseases 104

8.4.3 — Soil and water conservation

8.4.3 Soil and water conservation Clearing of forest cover, encroachment, poor agricultural practices and poorly designed roads aggravate soil erosion. Eroded material from cleared land surfaces is transported to downstream water bodies and deposited as sediment and silt. Silt and sediment reduce storage volume and life span of reservoirs, destroy and clog water supply facilities, reduce fertility of upstream farms and scour river beds. Degrad- ed catchments tend to attenuate flood waters downstream faster than undegraded catchments thereby intensifying flooding and water logging in floodplains and river valleys. The quality of receiving waters is lowered due to increased turbidity and with it increased sediment loads. Increased turbidity increases water treatment costs for water supplies. Best practices such as on-farm soil and water conservation linked to farm forestry prac- tices will be promoted. Gully erosion check dams and gabions will be construction on eroded river banks to trap silt and sediment that end up in reservoirs. The capacity of communities will be built through extension services, training and applying knowhow. Those in ASAL areas will be trained in animal husbandry and land carrying capacity as well as in the added value of growing fodder near river banks and modern methods of range management. Objective: To improve soil and water conservation. Intervention strategies: Table 8.23 illustrates the intervention strategies. Erosion at Implementation modalities: This programme will be implemented with the collabora- Lake Bogoria. tion of relevant lead agencies and the participation of other stakeholders. Table 8.23. Soil and water conservation: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Implement soil and water • Increased base flow and • % reduction in the Resource use conservation technologies improved water quality ratio between peak and Conflicts • Increased land productivity minimum flows Climate change per unit area • % reduction in sediment • Water and soil conservation load in streams and rivers Natural disasters, structures constructed • % increase in yields e.g. earthquakes • Increased water volume per unit area • Formation of/strengthened • No. of water harvesting facilities water management institutions • No. of forest and water • Reduced distance to conservation groups established water points • Improved household income National Forest Programme 2016–2030 105 STRATEGY

8.5 — FOREST FOR ENERGY

8.5 FOREST FOR ENERGY CLUSTER Forest biomass is the main source of energy for most rural communities, food process- ing industries and urban households in Kenya. Forest energy is critically important to the Kenyan economy in general and to the household economy in rural and urban areas. Firewood is used mainly for cooking and heating and is sourced locally. Other alterna- tive sources such as electricity, liquid petroleum gas (LPG) and kerosene are costly and the supply is irregular. This makes firewood the only viable source of energy for local communities. The overdependence and growing demand call for sustainable manage- ment of forest resources and efficient use of firewood. The NFP considers the sustainable development goal on right of access to energy as a basic human right and proposes strategies for meeting the demand through commer- cialising tree growing and adopting energy saving technologies. The NFP will focus on addressing challenges in the charcoal industry, including conver- sion efficiencies, by adopting efficient technologies in production and use of charcoal. This programme will enhance community participation and promote charcoal produc- tion and trade as a formal enterprise. Currently, charcoal is produced from unsustaina- ble sources, mainly community lands, where use and management responsibilities are poorly defined and enforced. The programme will promote sustainable management and use of forest resources on community land, under secure land and tree tenure ar- rangements. To augment wood supplies from community land, establishment of energy plantations will be promoted either by county government or through joint ventures with the private sector. 106 Annual The annual consumption of firewood in consumption of firewood Kenya stood at 18.7 million m3 (corresponding 15 million to about 15 million tons) and the annual tons consumption of charcoal stood at around 2.6 million tons (MEWNR, 2013b). In terms of Total of energy this represents about 60 billion kWh firewood for firewood and around 20 billion kWh for and charcoal charcoal. Taking into account energy used the different efficiencies 8 bill kWh in cooking, firewood and Value of Value of charcoal combined may energy from imported represent around 8 billion Annual firewood and wood consumption charcoal based kWh effectively used. of charcoal products 2.6 million Analysis shows that the tons use of woody fuel “saved” the national economy 250% more than the total import value of all products derived from wood, paper included. The policy environment must be reformed with an aim of recognising charcoal produc- tion and trade as a legal and extremely valuable activity in Kenya. One key element is to link the resource tenure in ASALs to people who have a genuine interest in sustained production of not only charcoal but also fodder, bee forage and valuable timber in these areas. Such policy changes are a prerequisite for success of other charcoal-related in- terventions.

8.5.1 — Challenges, situational analysis and results framework

8.5.1 Challenges, situational analysis and results framework 5 FOREST FOR ENERGY Challenges: The thematic working group identified and analysed challenges pre- sented in box 5. Challenges Situational analysis: Analyses of the the- matic challenges and their strategies com- • Over-dependence on and exploitation of bined with the results of comprehensive wood resource as bio-energy problem analyses (problem trees) under- • Inability of men and women to exploit other taken by the forest for energy thematic sources of energy due to poverty working group and in consultation with • Increasing demand for bio-energies by selected experts and other stakeholders, households, institutions and industries resulted in the SWOT analysis in Table 8.24. • Inadequate incentives for establishing forests for energy Results framework: The strategic plan- • Inadequate focus on production of wood for bio-energy ning framework for this thematic cluster is • Low capacity of the county government presented in Table 8.25. to manage bio-energy supply The theme is addressed through one pro- • Lack of standards in packaging and gramme: Forest energy development. pricing of bio-energy products • High cost of initial investment to establish alternative energy sources. National Forest Programme 2016–2030 107 Table 8.24. SWOT analysis for forest for energy cluster. STRENGTHS WEAKNESSES • Easily available and accessible wood sources • Forest ecosystems take long to recover • Availability of several energy sources and regenerate making them hard to sustain for energy harvesting • Existence of organised community structures (charcoal producer groups) • Poor enforcement of laws and regulations • Many tree species available for good wood fuel • Low uptake of improved stove technology • Wood fuel is the cheapest source of energy • Inadequate research work on fast growing, dense species suitable for charcoal and firewood • Wood fuel provides employment to many • Lack of incentives to produce biomass for energy • Wood fuel is an essential commodity in the economy • County governments’ lack of capacity to manage bio-energy • Weak awareness and weak emphasis on alternative sources of energy • Lack of standards and poor value chain development (markets, pricing, packaging and branding) OPPORTUNITIES THREATS • Large market for wood fuel • Vested interests • Availability of land for tree plantations • High cost of initial investment to establish or biomass production an alternative energy source • Availability of technical expertise • Unsustainable exploitation of wood resources • Local and international stakeholder • Land fragmentation support and goodwill • Conflicting land-use policies • Technology for efficient production • Climate change and utilisation of wood fuel constantly being improved • Bureaucracy and corruption • Favourable growth conditions for bio-energy • Low financial investment in bio-energy • Low taxation on wood and alternative environmentally friendly technologies • Existence of fast growing species (Acacia xanthophloea and Acacia polyacantha, Bamboo, Eucalyptus spp.) • Promotion of alternative sources of energy (biogas) • Agroforestry schemes to promote wood production Table 8.25. Thematic objective, outcomes and indicators. Thematic objective Outcomes, 2016–2030 Indicators of achievement Sustainably produce, Long term (2030) • % contribution by biomass manage and utilise energy sub-sector to the GDP Increased availability of wood biomass biomass energy from sustainable sources • % increase in supply of and access to biomass for energy Efficient use of bio-energy promoted Medium term (2025) • % increase in adoption of efficient technologies for production Efficient biomass production and utilisation and using biomass energy Short term (2020) • % increase in penetration of quality standards in production of biomass Regulatory structures for best practices energy developed and adopted in producing biomass energy adopted Charcoal standards formulated and implemented in all counties 108

8.5.2 — Forest energy development

8.5.2 Forest energy development 5 FOREST FOR ENERGY An estimated 7.2 million households use wood fuel as their main source of energy for cooking. Over 80% of Kenyan rural households rely on wood fuel either as firewood or charcoal. Firewood meets over 64.5% of household energy needs whilst charcoal meets 17% (Weismann et al., 2014). For subsistence, firewood is more important than charcoal, but much less traded and valued in monetary terms. Charcoal is an important and simple means of earning cash income; in the charcoal production areas this income is more important than income from alternatives such as agriculture. The industry is however one of the most pressing environmental problems faced in Kenya, especially in the ASALs, due to its potential to reduce natural resources on which the poor depend and to degrade land, which in turn contribute to the down- ward spiral of poverty. The unsustainable use of trees for charcoal production also exacerbates climate change effects. However, sustainable charcoal use has the potential to reduce Kenya’s contri- bution to climate change compared with an alternative scenario of substituting wood fuel with fossil fuel. Wood for charcoal production should be obtained from a sus- tainably grown biomass resource and harvested using efficient techniques to ensure minimum biomass waste is generated. Wood should then be converted into charcoal using efficient kilns; properly handled during packaging, storage and transportation to minimise waste; and, finally, consumed using improved cook stoves. This calls for im- provements on the charcoal value chain. Although it is imperative to appreciate the charcoal industry as a legal and sound trade that deserves support, this thematic cluster recognises that governance, policy and regulatory aspects should be followed as addressed in the Governance and cross cut- ting issues thematic cluster. The two thematic clusters complement each other. Forest industries in Kenya are characterised by low efficiency resulting in high volumes of waste, which can easily be converted to bio-energy for industrial, domestic and insti- tutional use. The interventions suggested in this programme will go a long way in enhancing the livelihoods of rural and urban communities, and improving efficiency in use of current biomass through value chain development, sound technological transfer and mitigation of climate change. Objective: To increase access to energy through increased biomass and use of efficient technologies. Intervention strategies: Table 8.26 illustrates the intervention strategies. National Forest Programme 2016–2030 109 Table 8.26. Forest energy development: Intervention strategies and outcomes Programme strategies Programme outcomes Key indicators Risks Develop and implement • Charcoal value chain policy • Competitive prices Forest fires policy reforms on developed and implemented Natural charcoal value chains disasters and Promote of sustainable • Contribution of biomass • % change in contribution catastrophes production and efficient energy sub-sector into the of biomass energy national accounting systems subsector into the GDP Climate change utilisation of biomass energy • Improved livelihoods at • No. of households with household level disposable income, • Enhanced energy efficiency in number of persons with production and use of bio-energy increased quality of life • Employment opportunities created • No. of quality standards and best practices developed and effected • No. of men and women employed in biomass energy sub-sector • No. of energy efficient technologies disseminated and adopted Diversify alternative • Reduced dependency on charcoal, • % increase in the number of energy sources firewood and fossil fuels alternative energy sources • Reduced greenhouse gas emissions • No. of men and women using alternative energy sources • % increase in production of bio-energy from wood waste Integrate forest energy • Reduced degradation of • No. of county integrated production into county natural resources land-use plans addressing land use plans • Reduced dependence on biomass energy issues public forests for energy Promote commercial • Increased income for • % increase in area tree growing for biomass commercial tree growers under commercial tree energy production production for fuel wood Develop charcoal value • Increased income and livelihoods • Price ratio of producer/ chain and standards • improved charcoal enterprises. consumer Use waste from wood • Increased revenues for mills • Volume of products industries to produce produced from waste wood chips, sawdust and charcoal briquettes Implementation modalities: This programme will be implemented in collaboration with the relevant lead agencies and the participation of other stakeholders. County governments will be strengthened to promote sustainable bio-energy production. A national forest energy coordinating unit will be established with a fund to promote forest energy initiatives (trees’ research, forest energy financing, technology assess- ment and adaptation and adoption, information dissemination, training in technology and business). County governments will support and promote establishment of on-farm commercial tree nurseries with suitable species for charcoal and firewood. To increase the forest cover, county governments will offer incentives to communities to plant more trees and support them with quality extension services. Counties will particularly spear- head allocation of land and establishment of biomass energy plantations and woodlots through own funds and PPP arrangements in order to provide sustainable sources of firewood and charcoal to urban and rural households. 110 STRATEGY

8.6 — FORESTRY EDUCATION,

8.6 FORESTRY EDUCATION, TRAINING AND RESEARCH CLUSTER This thematic cluster focuses on the need for systematic and structured education, training and research on environment, natural resources and emerging issues. It ad- dresses the development of specialised skills, knowledge, technologies and change of attitudes towards forests and natural resources. Basic and applied researches are fun- damental to developing forestry education curricula and enhancing the human resource capacity. Information generation, sharing and dissemination are important for forestry development. Other important issues covered under this thematic cluster include intel- lectual property rights and entrepreneurship.

8.6.1 — Challenges, situational analysis and results framework

8.6.1 Challenges, situational analysis and results framework Challenges: Box 6 highlights the challenges facing forest education, research and train- ing. Situational analysis: The SWOT (Table 8.27) provides results of the analyses of challeng- es in this thematic cluster. Results framework: Table 8.28 presents 6 FORESTRY EDUCATION, TRAINING AND RESEARCH the strategic planning framework for this thematic cluster. Challenges Programmes within this cluster: • Inadequate integration of forestry • Education education in school curriculum • Training • Lack of harmonised curriculum between training institutions and industry • Research and development. • Inadequate technical professionals in practical aspects of the curriculum • Non-participatory review of training curricula • Non-recognition of emerging issues such as climate change in curriculum development • Inadequate entrepreneurial training in most forestry training institutions • Inadequate resource mobilisation for forest and NRM education • Inadequate capacity for forest research and development • Weak linkages and cooperation between training and educational institutions, researchers and industry • Poor dissemination strategies for research findings • Inadequate communication platforms between communities, county and central governments and other stakeholders to discuss forestry matters. National Forest Programme 2016–2030 111 6 FORESTRY EDUCATION, TRAINING AND RESEARCH Table 8.27. SWOT analysis for the forestry education, training and research cluster. STRENGTHS WEAKNESSES • Education and research structures are in place • Inadequate dissemination of research results • Existence of guiding policies on education • Inadequate innovation and entrepreneurial skills and research, e.g. Vision 2013 • Negative perception towards forestry • English language is widely spoken in Kenya and • Unwillingness of institutions to share information allows easy access to international literature • Inadequate and outdated curricula • Capacity-building institutions are recognised by the government • Inadequate funding for forestry education • Human resource is available for • Weak linkage between the relevant government education and forest research institutions, industry and researchers • Capacity is available to generate • Disconnect between training institutions relevant technologies and practical work in the field • General understanding of the needs of rural • Low technology adoption. communities for forest products and services • Positive public attitudes towards management of forest ecosystems and production of forests. OPPORTUNITIES THREATS • Untapped educational linkages • Vested interests • Liberalised education system • Limited opportunities for career progression has expanded universities • High poverty levels. • Available and ongoing expansion of ICT technologies, e.g. remote sensing and GIS • Existing collaborative research and partnerships between research institutes/ universities and other stakeholders • Existing and expanding communication platforms linking community, government and stakeholders • Youthful population (60%). Table 8.28. Thematic objective, outcomes and indicators. Thematic objective Outcomes, 2016–2030 Indicators of achievement Enhance capacity in Long term (2030) • % increase in funding for forest research forestry education, Improved research and adoption • % increase in new forestry extension, training of new technologies in forestry technologies developed and research • % increase in research findings adopted and integrated in planning processes Medium term (2025) • % increase in partnerships among research/ training/educations institutions Enhanced coordination and synergy in research, training and education • Increase in no. of public and private institutions offering updated and modern curricula • Increase in no. of developed M&E web-based enabled tools Short term (2020) • % increase in no. of forestry publications in peer-reviewed international journals Improved capacity for forestry education, research, training and information dissemination 112

8.6.2 — Education

8.6.2 Education Today's education and training systems are influenced by local and global trends. Edu- cation and training curricula should be upgraded to meet present and future develop- ment needs of a changing society. An updated and harmonised curriculum that incor- porates entrepreneurial skills will form the foundation for strengthening the forestry education system. In this regard, forest education will positively influence adoption of new strategies, framework, policies and socio-economic challenges. Developing the forest education curriculum programme will involve relevant stakehold- ers and will establish a clear feedback mechanism between training institutions and industry to ease future revisions of the curriculum. Objective: To enhance content and quality of forestry education. Intervention strategies: Table 8.29 illustrates the intervention strategies in Education. Implementation modalities: Curriculum development will involve many stakeholders, and will provide the conceptual framework for forestry education and capacity building in the sector. The relevant national government agency will provide policy guidelines while training institutions will be the lead implementers. Table 8.29. Education: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Forest education curriculum • Updated curricula • No. of reviewed and Resistance review in education, training updated curricula to change in and research institutions • No. of institutions with the targeted reviewed curricula institutions Develop capacity for • Personnel trained to implement • No. of men and women trained requisite human personnel updated curricula to implement updated curricula • Entrepreneurship skills integrated Improve delivery of • Greater impact of forest • No. of male and female forest education education in the sector graduates employed -% increase in adoption of forestry technologies National Forest Programme 2016–2030 113 6 FORESTRY 8.6.3 Training EDUCATION, TRAINING AND Training in forestry will impart knowledge to forestry personnel to manage forests sus- RESEARCH tainably. Training will focus on harnessing human skills and forestry resources in the various sectors for socio-economic transformation. To fill existing gaps in individual institutions, collaboration and partnerships (local and international) and strengthening resource mobilisation through partnerships will be necessary. Training will also empha- sise the importance of creating awareness to industry of the importance of conserving the environment and a clean environment to spur investments and partnerships in the sector. Objective: To strengthen the capacity of stakeholders through training in forestry skills. Intervention strategies: Table 8.30 illustrates the intervention strategies. Implementation modalities: Forestry training institutions and other relevant stake- holders with appropriate cooperation with private sector will implement the forestry training. Table 8.30. Training: Intervention strategies and outcomes Programme strategies Programme outcomes Key indicators Risks Review and implement • Relevant training programmes • No. of trainees enrolled Inadequate training programmes for the updated and more in programmes resources forestry training institutions stakeholders enrolled available Link training skills to • Market and demand driven • No. of trainees absorbed market demands trainings undertaken in industry Strengthen vocational • Vocational centres • No. of trainees in training centres functional and equipped vocational centres Offer in-service courses • Emerging issues and challenges • No. of personnel trained on emerging issues adequately addressed • No. of emerging issues addressed Implement outreach • More stakeholders and • No. of stakeholders involved training programmes audience reached in forestry-related activities

8.6.4 — Research and development

8.6.4 Research and development Forest research and development are important for generating knowledge, innovations and technologies for natural resource management. In that regard research objectives need to be aligned with national priorities such as poverty reduction, conservation and sustainable development, and improved livelihoods. Research will need to focus on in- tegrating tree planting for commercial purposes and other non-timber forest products with crop production to ensure food security. Stakeholder participation in research is important to improve adoptability of research findings and technologies. Research projects should aim at increasing environmental stability, forest productivi- ty and production of wood and other forest products for sustainable development, as envisaged in the draft national Forest Policy, 2015. Through research, modern scientific technologies are developed and applied to enhance production of wood and other non- wood forest products. Objective: To generate knowledge and develop technologies and innovations in forestry. Intervention strategies: Table 8.31 illustrates the intervention strategies. 114 Implementation modalities: Research is a multi-stakeholder and multidisciplinary pro- cess that will require generation of knowledge, technological development, and infor- mation and innovation dissemination. It will also need the requisite capacity, resources and expert skills. Research will be implemented by the relevant lead national govern- ment agencies. Table 8.31. Research and development: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Mainstream research • Uptake of innovations/ • No. of technological innovations Inadequate in forestry and national technologies • Value of environmental services funding development • Implemented technology reflected in national accounts Lack of development cooperation • Enlightened/informed between stakeholders stakeholders Develop forest technologies • Forest technologies developed • No. of technologies developed Build capacities in research • Improved quality of research • No. of new research projects Disseminate research • Better understanding of • No. of technologies adopted and outputs forestry and the environment by stakeholders Enhance research on • Sustainable supply of indigenous • No. of projects related to indigenous tree species forest products and services indigenous tree species • No. of reports on improved management and conservation of indigenous forests Strengthen the National • New tree species domesticated • No. of new tree species Tree Improvement and adopted by stakeholders introduced on plantations Programme in collaboration and farms with stakeholders Partnership and networking • Multidisciplinary research • No. of partnerships established • Improved collaboration • No. of joint research initiatives among stakeholders National Forest Programme 2016–2030 115 STRATEGY

8.7 — FOREST AND CLIMATE

8.7 FOREST AND CLIMATE CHANGE CLUSTER This thematic cluster focuses on the complex interconnection between climate change, forests and people. Climate change impacts cut across various sectors; however, for- ests hold a unique position in the climate change dialogue because of their ability to reduce greenhouse gases through sequestration. In this regard, adoption of innovative and transformative approaches to climate change response needs to be integrated in the sector. Kenya supports and is committed to international initiatives and dialogues— UNFCCC, INDC, UNFF, CBD, AFR100, BONN—to meet the climate change and forestry ob- jectives outlined by the Social Development Goals. Consequently, the country has de- veloped a National Climate Change Response Strategy and a Green Economy Strategy aimed at a low carbon–climate resilient pathway. This cluster focuses on climate change programmes and strategies that protect for- est landscapes and enhance the provision of ecosystem goods and services. The pro- grammes and strategies are also designed to address the drivers of deforestation and degradation. These measures increase resilience to risks, which include flooding, droughts, reduced crop yields and landslides.

8.7.1 — Challenges, situational analysis and results framework

8.7.1 Challenges, situational analysis and results framework Challenges are summarised in box 7. Situational analysis: Climate change presents a complex mix of challenges and op- portunities for Kenya, particularly within the forestry sector. Kenya’s strategies for ad- dressing climate change in the forestry sector will largely revolve around responding to uncertainties and shocks from natural disasters while reducing the growing population ‘s vulnerability to the impacts of climate change on ecosystems. The SWOT (Table 8.32) presents the results of the thematic challenges in this cluster. Results framework: Table 8.33 presents 7 FOREST AND CLIMATE CHANGE the strategic planning framework for this thematic cluster. Challenges Programmes within this cluster: • Weak forest sector governance • Climate change mitigation • Unsustainable use of forest products • Climate change adaptation • Decreased potential to mitigate effects of • Disaster risk reduction. climate change due to loss of forest cover • Uncontrolled erosion and land-uses changes • Increased exposure to risks of climate change extremes such as droughts, floods and landslides • Complex direct and proximate drivers of deforestation and degradation. 116 Table 8.32. SWOT analysis for the forest and climate change cluster. STRENGTHS WEAKNESSES • Support from legal instruments such • High extraction rates of forest as the Constitution, and documents products such as wood fuel such as the NCCAP, the NCCRS, etc. • Under-valuation of forests in the provision • Climate change mainstreaming in other of ecosystem goods and services related sectors such as agriculture, • Weak enforcement of forest regulations and laws poverty reduction, energy and housing • Conflicting institutional mandates • Support from national and county governments, on the forest resource such as the Climate Change Directorate • Inadequate representation of non- • Awareness of the role of forests in state actors in decision-making providing ecosystem goods and services • Climate change interventions are under-funded. • Emphasis on the role of forests in climate change through carbon financing mechanisms including REDD+ • Growing culture of tree planting • Awareness of climate change impacts. OPPORTUNITIES THREATS • Conducive legislative environment • Loss of ecosystem integrity and functions (Forest Conservation and Management • Climate change impacts remain un- Bill, Climate Change Act, 2016, etc.) quantified and “unknown” • Devolved forest extension services • Land conversion. • Global support for climate action (implied in global support). Table 8.33. Thematic objective, outcomes and indicators. Thematic objective Outcomes, 2016–2030 Indicators of achievement Integrate climate Long term (2030) • 10% forest cover goal achieved in line change actions in with Vision 2030 and the Constitution Reduced deforestation and forest degradation forest programmes Diversified livelihood options and energy sources Medium term (2025) • % change in emissions from deforestation and degradation Reduced emissions from forest measured in tCO2e per hectare land cover change • % increase in biomass Increased resources from well- managed, productive forests Short term (2020) • No. of new mechanisms for forest resource management and Climate resilience programmes operationalised benefit-sharing developed National Forest Programme 2016–2030 117 7 FOREST AND 8.7.2 Climate change mitigation CLIMATE CHANGE Climate change mitigation refers to buffering against the causes and impacts of a changing climate. Mitigating the impacts of climate change resulting from forest loss entails conserving and protecting forests as described in the Natural Forest Manage- ment and Conservation cluster and synergised with Kenya’s emerging national REDD+ arrangements. Although forest conversion has occurred in some public forests, it is more significant in areas outside gazetted forest reserves. The greatest potential for mitigating climate change is in reducing current degradation and restoring degraded forest and other forested landscapes through tree planting. Objectives: To enhance carbon stocks within and outside public forests. Intervention strategies: Table 8.34 illustrates the intervention strategies. Implementation modalities: Implementation will largely be integrated into emerging and ongoing programmes by the national government, coun- Minimum ty governments, communities, private sector and civil society. Emphasis will be on enhancing forest 10% tree ecosystem services. Climate change interventions cover by will be realised through implementing policy, leg- islative and institutional mandates. Incentives for 2030 communities involved in conservation and sustain- able forest management, such as benefit-sharing mechanisms, will be established or enhanced. Land managers and small-scale farmers will be encouraged to maintain at least 10% tree cover on their land. Table 8.34. Climate change mitigation: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Enhance forest law • Reduced deforestation • % net change in forest cover Forest fires enforcement and and forest degradation • % reduction in emissions Pests and management • Increased provision of forest associated with forest diseases products and services conversion • Reduction in illegally • Arrest and prosecution data harvested forest resources Promote joint forest • Increased carbon stocks • % change in carbon stocks management systems and • Reduced degradation • Proportion of degraded best practice through CFAs, in forest areas forest area rehabilitated private sector groups and • Increased income and • % increase in contribution of other community groups improved living standards sustainable forest management activities to livelihoods Restorate degraded • Improved forest areas • % tree cover increased forest areas • REDD+, MRV and other • % increase in key monitoring systems indicator species • % increase in ecosystem goods and services • No. of functional MRVs system Promote clean energy • Reduced reliance on wood fuels • No. of clean energy technology technologies adopted • % reduction in demand for wood fuel per capita 118

8.7.3 — Climate change adaptation

8.7.3 Climate change adaptation Climate change adaptation activities aim at enhancing resilience to shocks associated with the impacts of a changing climate. Kenya’s National Adaptation Plan (NAP), under the National Climate Change Response Strategy emphasises the socio-economic costs of climate change. The NAP stresses that adapting to climate change will rely on inte- grating climate change programming across all sectors, including forestry. It highlights that underlying development and growth challenges must be addressed to provide sus- tainable responses to effects of climate change. Droughts and floods in areas with low forest cover have detrimental effects on land productivity. Strategies that emphasise watershed management, afforestation and re- forestation of areas prone to severe flash flooding, and use of tree cover to slow water run-off are all adaptation strategies that utilise forests to protect rural livelihoods. Objectives: To enhance resilience to climate change shocks and land productivity. Intervention strategies: Table 8.35 illustrates the intervention strategies Implementation modalities: Relevant The key principels of conservation agriculture are mini- ministries in county and national govern- ments will coordinate with local commu- mum soil disturbance (tillage), continuous crop rotation nities to conduct natural resource man- that includes nitrogen fixing legumes, and mulching. Crop agement planning and zoning activities. residues are left in the field to add organic matter in soil Structures to support zoning will be estab- and thereby improve its fertility and ability to absorb and lished, funded and supported with county store water, which in turn improves drought tolerance. governments and other stakeholders pro- viding technical expertise. Education on climate smart agricultural practices will be prioritised and provided by county govern- ments in concert with national efforts. Cli- mate smart agricultural practices should be prioritised in new and existing devel- opments of agriculture plans and actions. The explicit prioritisation of afforestation activities using primarily indigenous spe- cies should be included at all levels of de- velopment, with a view to relieving pres- sure on forest resources. Table 8.35. Climate change adaptation: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Landscape zoning and • All land uses zoned • No. of county land use/planning Land-use land-use planning • Decreased conflicts systems being implemented conflicts over resources • % decrease in agricultural Perverse expansion in forest areas incentives • Reduced no. of conflict incidents for clearing over natural resources forest land for Promote climate • Increased productivity • % decrease in agricultural agriculture smart agriculture / of agricultural land expansion into forested areas conservation practices • Increased use of improved crops • % increase in yields • Decreased clearance • No. of conservation agriculture of forest sites techniques practiced • % increase in area under climate smart agricultural practices Afforestation and • Secured water courses • % change in tree cover reforestation with improved, and availability drought-resistant and • Increased livelihood options • % change in household income multi-purpose tree species National Forest Programme 2016–2030 119 7 FOREST AND 8.7.4 Disaster risk reduction CLIMATE CHANGE Disaster risk reduction is important in reducing exposure to disasters related to climate change. Forests play an important role in risk reduction by providing key environmen- tal services. Risk reduction will involve careful environmental resource planning, sus- tainable extraction of forest and environmental resources, and improving capacity for preparedness against extremes. Linking preparedness to other interventions related to forest health and decreased direct dependence on forests for livelihoods are the basis for the strategies envisaged under this thematic cluster. Other important strategies include improved crop husbandry and water harvesting techniques. Objectives: To decrease vulnerability to severe impacts of climate change and create opportunities for alternative livelihoods. Intervention strategies: Table 8.36 illustrates the intervention strategies. Implementation modalities: Community awareness and education materials on cli- mate smart agroforestry systems will be developed. Support will be provided to coun- ty governments to implement awareness strategies and risk reduction measures. The relevant ministry will coordinate and liaise with other stakeholders including develop- ment partners to ensure the NCCRS is implemented. SDGs will guide implementation and ensure that community rights are safeguarded and prioritised in all disaster risk reduction activities. Table 8.36. Disaster risk reduction: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Promote climate smart • Agroforestry crops that • % change in yields Unpredictability agroforestry systems are more resistant to • % of household dependence of climate climate change shocks on food aid is decreased change impacts Promote information • Better understanding by • No. of stakeholders who can sharing on risk factors stakeholders of the risks identify measures for both associated with climate change adaptation and mitigation and the role of forests of climate change • No. of stakeholders practicing climate change actions Enhance disaster • Disaster preparedness • No. of internally displaced preparedness mechanisms in place men and women reduced Diversify livelihood • Decreased direct • No. of livelihood opportunities in rural areas dependence on forest options practised • Decreased pressure for new • % of population migrating land and/or urban migration to urban centres stabilises 120 STRATEGY

8.8 — FOREST FINANCING

8.8 FOREST FINANCING CLUSTER Investment in forestry has remained low, resulting in resource degradation and lost opportunities for producing and processing products. This thematic cluster addresses forest resource valuation, finance mobilisation as well as investment in forestry and related ecosystem services. Forest resource valuation: Investment in forestry is likely to increase if the value of trees and forests is well understood. To spur investments in the sector, it is necessary to capture and document the gross value of forest products and ecosystem services. Resource mobilisation: Creating enabling environments for forest investments and for results-based payments from climate change mitigation and adaptation funds should be a priority area for mobilisation. This can help Kenya deliver on forest cover and sustainable development goals. In addition, it will create opportunities to generate revenue and sustainable financing. Creating such an enabling environment will require that institutional arrangements are aligned, safeguards for finance are created, and benefit-sharing mechanisms are in place. New funding mechanisms such as pay- 8 FOREST FINANCING ments for ecosystem services have been initiated to finance activities that increase carbon sequestration and thus mitigate Challenges in forest financing climate change. Such payment systems • Inadequate synthesised data on total economic from resource users to resource managers value of forest and its contribution to the GDP have been developed and applied success- • Low resources allocated to forestry and related sectors fully in some parts of the world. In Kenya these payments have been pioneered and • Uneven distribution of benefits and costs their applicability is still being explored associated with ecosystem goods and services (Bernard et al., 2014). • Low involvement of the private sector and other stakeholders in forest financing Forest investment: Forest investment packages are developed under this pro- • Mechanisms for private sector investment in the gramme. Each of these packages will de- management of forest concessions are not in place scribe how national and county govern- • Short licensing periods ments and the private sector will work • Poor capacity and pathways to access together to create better platforms for climate change mitigation funds forest investments. • Conflicting and inadequate international and national policies and legislations • Insecure land and tree tenure across

8.8.1 — Challenges, situational

8.8.1 Challenges, situational gender and age structures analysis and results frame- • Risks associated with tree planting, e.g. work forest fires, diseases and pests Challenges: Key challenges facing the in- • Low understanding by financial institutions of vestment environment in the forestry sec- tree growing as a commercial enterprise tor are summarised in box 8. • Long gestation periods in forest investments Situational analysis: Identification and • Low value addition of forest products analyses of the above challenges by the • Limited certification and standards for operations thematic working group form the basis of the SWOT analysis in Table 8.37. National Forest Programme 2016–2030 121 Table 8.37. SWOT analysis for the forest financing cluster. STRENGTHS WEAKNESSES • Availability of land for investment • Forest investment pathways and finance • Labour (plenty of unemployed manpower) mechanisms are underdeveloped • Institutions in place (CFAs, research • Poor implementation and awareness of institutions, KFS/KWS & training institutions) previous strategies in forest management • Enabling legal environment (new Forest • Lack of capacity in counties to manage forests Bill, Constitution, Vision 2030) • Beneficiaries’ interests are not always protected • A sense of corporate social • Weak forest-focused civil society and responsibility in society professional bodies advocating forest financing • Strong and broad participation in the NFP • Lack of prioritised forest programs development process by stakeholders • Limited awareness and communication on (communities, in CSOs, county importance of forest conservation at all levels government, central government etc.) • Lack of access to databases for • Favourable climate in the highlands forest resource funding for production of wood and non- timber forest products (NTFP) • Inadequate involvement of the private sector • Increased interest in tree growing. • Poor accounting, certification and standards • Undervalued forest resources and non- recognition of the total contribution of forests • Insufficient commitments to long-term programmes • Unclear forest benefits/cost-sharing policies. OPPORTUNITIES THREATS • Increasing per capita income and associated • Charcoal production and illegal cutting of trees interest in forest investments • Lack of existing standard for governance • Promotion of legal/tax/partnership incentives • Climate change. • Carbon market mechanisms, e.g. REDD+ funds, Green bonds and other climate finance mechanisms • Rising demand for forest products and services • Avenues for accessing finance from international conservation funds and instruments available • Development of a national forest trust fund open for applications from all stakeholders • Involve financial institutions in forest investments • Ensure forest benefits are shared reasonably • Development of PPP frameworks. Table 8.38. Thematic objective, outcomes and indicators. Thematic objective Outcomes, 2016–2030 Indicators of achievement Diversify forest Long term (2030) • % increase in national and financing mechanisms county government finances Increased investment in the forestry sector allocated to forest investment • % increase in private sector investment in forestry Medium term (2025) • % increase in external funding Increased funding and finances for • % of PES revenue reinvested forest resources management in forest conservation Short term (2020) • Policies adopted that promote investment in forestry Enhanced enabling environment for forestry investment and funding • Open and transparent procedures for allocation of forestry resources 122 FOREST Results framework: Table 8.38 presents the strategic planning framework for this the- 8 FINANCING matic cluster. Programmes within this thematic cluster are: • Forest resources valuation • Forest resource mobilisation • Forest investment.

8.8.2 — Forest resources valuation

8.8.2 Forest resources valuation Forests are poorly valued and their contribution to the GDP is under-estimated. Reasons for undervaluation include: • Forest products are consumed at the subsistence level, thus, no record of trade flows exist. • The real value of forest products and services is direct or indirect inputs for other businesses or industries. Examples include the role of trees in enhancing soil fertility to support agriculture or the provision of tree fodder in ASALs and other areas. • The value of ecosystem services is rarely recorded. Global estimates indicate that the value is significantly higher than the total global GDP (Costanza et al., 1997; Costanza et al., 2014). Limited understanding of the value of forests both in terms of products and services results in policy- and decision-makers giving forests insufficient attention. Objective: To determine the total value of forest resources and increase financing to the forest sector. Intervention strategies: Table 8.39 illustrates the intervention strategies. Table 8.39. Forest resources valuation: Intervention strategies and outcomes. Programme strategies Programme outcomes Key indicators Risks Determine Total • Increased investment • No. of investments in forestry Climate change Economic Value (TEV) in forestry sector and related sectors by of forest resources • TEV documented by 2020 individuals and institutions • Revised costing and pricing of • % change in financial allocation goods and services from forests to forestry sector by national and county governments • Willingness to pay for environmental goods • % change in quality and quantity and services of data captured and stored Develop a satellite forestry • Forest resource account • % change in financial allocation resource account to document contribution to forestry sector by national to GDP established and county governments • Increased resource • % change in quality and quantity allocation (county and of data captured and stored national government) towards forestry sector National Forest Programme 2016–2030 123 8 FOREST 8.8.3 Forest resource mobilisation FINANCING The forestry sector is financed mainly from three sources: budgetary allocations, re- tained income from forest revenues, and support from development partners. The bulk of programmes in the sector are implemented with external support through technical cooperation arrangements. Forests for commercial use: Forests are suitable for commercial use and revenues from the use of forest resources could, in many cases, advantageously be ploughed back into forest management. The NFP aims to facilitate a better environment for in- vestments. Conservation of forests: Payments for Environmental Services (PES) is the practice of offering incentives to producers (communities, farmers or landowners and government) in exchange for sustainably managing land and its resources to provide environmental services. PES programmes promote conservation of natural resources and are volun- tary transactions/mutually beneficial contracts between consumers of environmental services and suppliers. The party supplying environmental services holds the property rights over an environmental good that provides a flow of benefits to the demanding party. For this, the supplying party is financially compensated by the demanding party. Environmental services fall in five broad categories: • Regulating services: benefits obtained from regulating ecosystem processes, e.g. regulating climate, water, and some human diseases. • Cultural services: non-material benefits obtained from ecosystems through spiritual enrichment, recreation, social relations, and aesthetic values. • Supporting services: benefits obtained from production of other ecosystem services, e.g. biomass, soil formation and retention, nutrient cycling, water cycling, and provisioning of habitat. • Provisioning services: supply of products from ecosystems, e.g. genetic resources, food and fibre, and fresh water. • Climate change services of forests: forests have four major roles in climate change—they currently contribute about one-sixth of global greenhouse gas emissions when cleared, or degraded; they possess a major mitigation potential through their carbon pools and sinks when managed sustainably; they produce wood fuel as an alternative to carbon-intensive fossil fuels; and, they provide a major sector for supporting climate change adaptation efforts. Carbon financing of forestry: The global threats of climate change have added an in- ternational dimension to forest conservation as forests provide greenhouse gas sinks. Emerging international funds for greenhouse gas reductions from forests are beginning to provide significant input into forest financing resources. Eligibility will vary depend- ing on the funding mechanism, but there is consolidation around the concept of meas- ured and verified actions that reduce emissions. International market mechanisms for reducing carbon emissions through forests con- tinue to emerge. There is optimism that carbon markets could provide a revenue source for forest landowners and rights holders, in addition to creating employment opportu- nities. Paris COP 21 of the UNFCCC included such market mechanisms as key features in financing forest cover conservation. REDD+ related initiatives are credited with much of the growth in voluntary carbon markets with the private sector taking on roles as investors, project developers, buyers and intermediaries. With the inclusion of large multilateral funds such as the Green Climate Fund, this market is expected to grow. Establishing a strategy for accessing forest financing funds: Kenya will continue to invest in quantifying greenhouse gas emissions and developing mechanisms for reduc- ing emissions from changes in forest cover. This will include a strategy for accessing international market mechanisms and finance for mitigating climate change. Expanding voluntary approaches and improving forest finance pathways for accessing climate finance will be established. These pathways will include how benefits will be reinvested and shared. Objective: To mobilise resources for forest development. Intervention strategies: Table 8.40 illustrates the intervention strategies. 124 Table 8.40. Mobilising resources for forests: Intervention strategies and outcomes Programme strategies Programme outcomes Key indicators Risks Forestry to finance itself • Increased forest cover • % change on forest cover Economic recessions, (Forestry as a productive chain of activity bearing its • A viable venture for investors • % change in income generated Forest fires e.g. bonds and national from forest investment own costs, as a business) and other pride in the industry • Amount of money raised from natural bonds and equities as well as disasters other financial instruments Corruption Promote forest partnerships • A viable venture for investors • No. of investment as (i.e. PPPs and concessions) e.g. bonds and national a result of PPPs Outbreaks pride in the industry • No. of partnerships formed of pests and and maintained diseases • No. of concessions formed Climate Lobby for financiers to • More finance available for forest • No. of financial instruments change forego interest accumulated management and conservation available to investors Global on loans to the government financial to redirect funds to crisis forest management Consolidate national • Explicit pathways for accessing • No. of results-based approaches and pathways forest finance are established payments flowing through to access international • MRV system established established pathways climate finance for forests and functioning • % change in external funding Promote climate change • Increased applications • Amount of money raised services of forests/carbon for carbon credits from carbon credits financing of forestry Implement various forest • Increased public, • No. of financial investment funds private and international instruments available investments in forestry National Forest Programme 2016–2030 125 8 FOREST 8.8.3 Forest investment FINANCING The investment level in the management of forest plantations and in the forest industry has been low for many years. The temporary logging ban between 1997 and 2012 contrib- uted significantly to this situation. However, with the projected reforms in policy and governance, opportunities to invest in forests will become more attractive. Developing value chains for forest products and removing investment and trade im- pediments will make investing in forest more competitive for small and large-scale tree growers and traders. This will lead to a more diverse business environment. For example, SMEs and cottage industries, providing the bulk of furniture in the country will gradually grow their investments in a better policy environment. These opportunities will enhance macro and micro businesses, ultimately enhancing livelihoods through commercial tree growing and processing. This programme has been designed to orient and facilitate investors at community, county and national levels. Objective: To provide investment opportunities, profiles and incentives. Intervention strategies: Table 8.41 illustrates the intervention strategies. Table 8.41. Forest investment (industry and livelihoods): Intervention strategies and outcomes. 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Retrieved July 2015, from http://skift.com/2015/06/14/kenya-is- increasing-spending-on-security-to-encourage-tourism/ Sloth A. 2009. From intimidation to conflict management in the Cambodian Forestry Sector. MA dissertation. Mediation and Conflict Resolution, Faculty of Law, University of Copenhagen. UNEP, United Nations Environment Programme. 2011. Forest in a green economy, a synthesis and UNEP (2011). Forests Investing in Natural capital. UNEP. 2012. The role and contribution of Montane forests and related ecosystem services to the Kenyan economy. UNEP, Nairobi. UNEP. 2014. Green Economy assessment report. Kenya. UNFCCC. 2012. Action taken by the Conference of the Parties at its 17th Session. Report of the Conference of the Parties on its 17th Session, held in Durban, 28 November–11 December 2011, Addendum, Part two: Accessed June 2015. http://unfccc.int/resource/docs/2011/cop17/eng/ 09a02.pdf UNFF Secretariat. 2014. Independent Assessment of the International Arrangement on Forests (Consultant Inception Report). Van Breugel, P. et al., 2011. Potential natural vegetation of Eastern Africa (Ethiopia, Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia). vol. 6. An overview of the methods and material used to develop the map. Forest & Landscape Working Paper 68–2011. Weismann U, Kiteme B, Mwangi Z. 2014. Socio-economic atlas of Kenya. Depicting the National Population Census by county and sub- Location. Kenya National Bureau of Statistics, Nairobi. White F. 1978. The afromontane region. In: Werger MJA, editor. Biogeography of ecology of Southern Africa. Dr. W. Junk Publications, The Hague. White F. 1983. Vegetation of Africa—a descriptive memoir to accompany the UNESCO/AETFAT/UNSO Vegetation map of Africa. Natural Resources Research Report. UNESCO, Paris, France. 356 pp. WHO, 2002. Traditional Medicine Strategy 2002-2005. Available at: http://www.wpro.who. int/health_technology/book_who_traditional_medicine_strategy_2002_2005.pdf World Bank. 2009. Roots for good forest outcomes. An analytical framework for governance reforms. The World Bank, Washington, DC. World Economic Forum. 2013. Africa competitiveness report 2013. WEC, Davos. World Economic Forum. 2014. Competitiveness ranking. Retrieved June 2015. http:// reports.weforum.org/global-competitiveness-report-2014-2015/rankings/ WPR, World Population Review. 2015. World Population Review. http://worldpopulationreview. com/countries/kenya-population/#. Based on World Population Prospects. Global demographic estimates and projections by the United Nations. 160 APPENDIX A History of Forestry in Kenya In the early 1890s, Kenya began experiencing colonial rule and forests were handled in various ways. Under the British rulers, the governance system was disorderly, allowing Arab settlers to massively harvest mangrove trees without limitation. However, in 1891, some of the mangroves were protected. The construction of the railway line triggered further protection of the forest as builders cut trees for firewood and railway sleepers. In 1890, forests of the coastal areas, areas covering five miles around the court house in Nairobi (present day High court) and area covering two miles on either side of the railway line, were reserved as protected forests (Logie & Dyson, 1962). In 1902–1905, existing forest reserves were managed, as more non-occupied forested land areas were being discovered and added as forest reserves. Between 1900 and 1910, the demand for wood products for general development activities was on the rise and timber was freely extracted. Sawmills were established and by 1920 at least 20 sawmills were operational in the country (Mugo, Nyandiga & Gachanja, 2010). Gazetted forests in Kenya from 1900–2015 Between 1900 and 1904, the case of forestry reservation and regulation was advocated and the colonial administration passed the East Africa Forest Regulations. This in turn improved on the administration of forests, which increased to 359,200 ha before World War I (Mugo, Nyandiga & Gachanja, 2010). During 1907–1911, David E. Hutchins made a blueprint for Kenya’s forestry. He set up a programme to replace cut-over forests. He started the arboretum in Nairobi, introduced the art of pit-sawing and had forests managed in 20-year felling cycles rather than haphazardly (Mugo, Nyandiga & Gachanja, 2010). Through and after World War I, ordinary administrative and forest reservation operations were interfered with and large montane conifer forests were left denuded of accessible timber (Logie & Dyson, 1962). Between 1915 and 1916 there was an ordination of armed forest guards and this brought about the military type of forest protection. The Second World War led to rapid forest exploitation. In 1940, forest resources as wood cut from forest reserves rose from approximately 27,470 m3 to 52,901 m3 before the war and in 1941, increased to 62,417m3 (Ofcansky, 1984). In 1941, the forest ordinance was revised and provisions were set up for nature reserves. Reserves such as the Kikuyu Escarpment (38,311 ha), Aberdares (103,025 ha) and Mt Kenya (200,870 ha) were gazetted by Legal Notice 48 of 1943. A Forest Ordinance was passed in 1942 and by 1946, Kenya had endorsed a firm re-forestation policy where, “6,000 acres of softwoods would be planted in a year for 35 years to provide the main timber requirements of the country” (Pudden, 1957). The White Paper No. 85 of 1967, titled “A Forest Policy for Kenya” was issued by the colonial government stating the government’s Forest Principles in 10 headlines: Reservation; Protection; Management; Industry; Finance; Employment; African Areas; Private Forests and other Forests not under State Ownership; Public Amenity; Wildlife Research and Education. Londiani Forestry Training School was then opened to train African forestry rangers. In 1962, Egerton College of Agriculture opened and admitted 15 students to training in diploma courses in forestry (Mugo, Nyandiga & Gachanja, 2010). By the end of the 1970s, most of the expatriate officers had been replaced. In 1962, the Forest Ordinance (CAP. 385) was enacted; after independence it became the Forests Law, Cap. 385. The Ministry of Natural Resources was responsible for forestry legislation and executive duties. The Forest Boundary Commission was formed in 1946 and at least 35,208 ha of forest land was excised for agriculture while valuable catchments were added to forest reserves (Mugo, Nyandiga & Gachanja, 2010). In 1968, excisions for the Royal National Parks for wildlife protection were declared in the moorland areas. By 1970, at least 70 sawmills had been licensed to operate in government forest reserves (Mugo, Nyandiga & Gachanja, 2010). National Forest Programme 2016–2030 161 Two plywood mills were available, producing 0.90 million m3 of plywood. In 1971, the log consumption was 12,907 m3. Most of the paper and pulp consumed in the country was imported, (Mugo, Nyandiga & Gachanja, 2010) but a small pulp mill in Thika produced 2,500 tonnes annually from waste paper and imported pulp. A pulp mill was then established at Webuye and the government agreed to provide 500,000 m3 of cypress and pinewood annually. Forests in Uasin Gishu, Lugari, Turbo and South Nandi supplied the mill. The Pan-African Paper Mills Limited was licensed in 1970 and construction of the factory started and was operational in 1974. However, it did not last, as poor management and inefficiency resulted in its collapse (Mugo, Nyandiga & Gachanja, 2010). In 1976, the Kenya Agricultural Research Institute took over the forestry research role from the East Africa Agriculture and Forestry Research Organization. In 1986 the Kenya Forestry Research Institute was established under the Science and Technology Act (Chapter 250). The year 1989 saw the birth of the Kenya Indigenous Forest Conservation (KIFCON), whose aim was to keep an inventory of the remaining natural State forest estate and provide management. KIFCON recommended that the Ogieks living in Mau forest be settled in part of the forest to avoid scattered human settlements all over Mau. This proposal was accepted but later terminated prematurely and KIFCON disbanded. Development of the Kenya Forestry Master Plan began with preparatory studies in 1990, with the goal of producing a master sector plan for strengthening the forest department’s planning capacity. In 2005, a Forests Act was passed which contributed to positive changes in the sector. These changes include involvement of communities in a joint management scheme named Participatory Forest Management (PFM) and later, the introduction of Plantation Establishment for Livelihood Improvement Scheme (PELIS). The latter is an improved version of the traditional Kenyan Shamba system, a form of the Taungya system where agricultural crops are grown together with tree seedlings to establish plantation on degraded forest land. The two systems today represent participatory forest management in Kenya. The Forests Act, 2005 also provided for the establishment of a semi-autonomous government agency. The Kenya Forest Service replaced the Forest Department to provide for a better forest service. Currently, forest governance is executed under the Forests Act, 2005 and the Forest Policy of 1968. However, these two documents are being revised. The formulation of the Kenya National Forest Programme kicked off in late 2014 and was completed in 2016. 162 APPENDIX B The participatory process 2016 Launch of NFP • Outcome: Implementation June 2016 Finalising NFP Doc, lay-out, source photos, printing and on soft media • Outcome: NFP document and overall forestry framework freely available in the public domain June 2016 National validation • 150 multi-stakeholder representatives in 3-days workshop • Outcome: Final feed-back and endorsements March+ Expert review of programme, 12 experts , 2x5 days May 2016 • Outcome: Programme: Multi-disciplinary review and quality assurance January- Consultations with CSOs, Development Partners February 2016 February 2016 Intra-government pre-consultative meeting with KFS, KEFRI, University of Eldoret, Londiani Forest School • 150 participants • Outcome: First stage of consultation feed-back December Consultative and participatory county engagement with County Environ- 2015 ment Ministers • 35 county ministers as participants • Outcome: County priorities well incorporated in the NFP November Thematic Working Session 4 2015 • 140 multi-stakeholder specialists and representatives for seven thematic clusters • Outcome: Consolidation of programmes November Expert consultative meeting 2015 • 27 government experts in forestry production and research • Outcome: Validation of thematic programmes August 2015 Round table seminar with youth and student representatives on forest development • 20 representatives of youth organisations • Outcomes: Capturing private sector challenges and identifying opportunities August 2015 Round table seminar on gender and equality • 20 gender and women’s associations representatives • Outcomes: Capturing gender mainstreaming opportunities August 2015 Web page for NFP • NFP web page design • Outcome: NFP process more transparent and interactive. August 2015 Round table seminar with private sector representatives on investment environment • 15 private sector representatives • Outcomes: Capturing private sector challenges and identifying opportunities National Forest Programme 2016–2030 163 May 2015 Thematic Working Session 3 • 140 multi-stakeholder specialists and representatives of seven thematic areas • Outcome: Consolidation of logic, linkages and programme formulation March 2015 Colloquium on deepening dialogue with stakeholders in the Forest Sec- tor in Kenya • NFP secretariat as a co-organiser of the colloquium aimed at deepening the engagement with forest indigenous communities and sharing international experiences • 300 participants, mainly, Indigenous Forest Peoples (IFPs) participated for 4 days • Outcome: A dialogue platform established between government and IFPs; Endorsed matrix of IFP issues; mechanism for continued engagement, built directly on the outcomes of the National Forum on IFPs, previously held by the NFP Secretariat and MENR&RDA in January, 2015 February 2015 Assisted devolution of KFS forest extension responsibilities from KFS to County Government through Transition Implementation Plans January 2015 National Forum for Forest-dependent Peoples • NFP collaborated with Indigenous Forest Peoples representatives, MENR&RDA, WB and KFS to create a dialogue platform for exploring constructive ways to address long-standing issues that concern forest management, land use and access rights as well as to promote community-based approaches, which include participatory forest management and the facilitation of community collaboration with government institutions • Communities were represented from 12 counties. They included: Yaaku of Mukokodo Forest, Laikipia County; Ilchamus of Ilmukutani Forests, Baringo County; Sengwer of Cherangani and Embobut forests in Kitale; Ogiek of Maasai Mau, Eastern Mau, and Mt. Eburu in Narok and Nakuru Counties; Ogiek of Mt. Elgon in Chepkitale-Bungoma, West Pokot, Trans Nzoia, Elgeyo Marakwet, Uasin Ngishu and Kericho Counties; and Miji-kenda (Duruma/Warabai) from the Coast, Kilifi/Kwale counties • 150 representatives of Indigenous Forest Peoples attended the 4-day forum in Nakuru • Outcomes: A constructive dialogue platform between IFPs and the government was established. Moreover, communities prepared memoranda to the GoK, to form the basis of policy and programming content for the government’s engagement with forest-dependent communities within the framework of the National Forest Programme. In addition, a matrix of IFP issues, a draft Action plan and draft guidelines were prepared for a mechanism of continued engagement in the dialogue process November Thematic Working Session 2 2014 • 140 multi-stakeholder specialists and representatives for seven thematic clusters November 2014 • Outcomes: SWOT analysis for thematic clusters and identification of programmes with their strategic objectives, outcomes and indicators • Thematic Working Session 1 • 140 multi-stakeholder specialists and representatives of seven thematic clusters • Outcomes: Problem tree and analysis, strategic objectives, expected outcomes and indicators for each thematic area October 2014 Set-up of NFP Secretariat • Organisation, deployment, budget and office • Development of NFP awareness materials (posters, brochures, banners) • Outcome: NFP process got a foundation for commencement 164 October 2014 Targeted engagements with stakeholders - December • Annual Scientific Awareness creation conference at 2015 the Forest Society of Kenya (130 stakeholders) • Kenya Forest Working Group meeting with universities (150 stakeholders) • Meeting with Kenyatta University the Environmental Club (150 stakeholders) • Sessions with KFS management and a range of officers (300 stakeholders) • Two-part sessions and meetings with multiple stakeholders from multiple organisations (250 stakeholders) • Inter-parliamentary meeting on forest policies (international) (60 stakeholders) • Ad hoc expert meeting under UNFF hosted in Nairobi, 2014 (150 participants) • Outcomes: Awareness of the cross-sectoral and participatory process as well as on how stakeholders could engage and become part of NFP development August – Five Awareness and Consultative Workshops September • Participants balanced between national government, 2014 county government, parastatals, community organisations, civil society and private sector; the workshops were also geographically and gender balanced • 5 x 500 multi-stakeholders • Representatives from Nairobi, Central, Mau, North Rift, Nyanza, Western, Eastern, North Eastern and Coastal Regions • Outcome: Identification of challenges in sustainable forest resource management and grouping of 140 elected multi-stakeholder representatives into working groups March 2012 Nyanza and Coastal Region Workshop • Sensitisation of participants on the approach of NFP and engaging them in discussions of the participatory opportunities available in the forestry sector • 96 participants • Outcome: Interaction on NFP development January 2012 Children, Women and Youth Symposium • Forests management and conservation issues • 263 participants • Outcome: National interaction on forest development National Forest Programme 2016–2030 165 National Forest Programme 2016–2030 REPUBLIC OF KENYA National Forest Programme 2016–2030 Forests are important for sustainable development. They provide the foundation for poverty alleviation, environmental sustainability, food security and agriculture, supply of energy and water, biodiversity conservation and climate change resilience. Forests play a key role in Kenya’s environmental, social and economic contexts. The National Forest Programme (2016–2030) is the first cross-sectoral and multi-stakeholder national framework to coordinate forest development with the aim to meet the needs of Kenyans in the next 15 years. This document is in three parts divided into ten chapters. The background and descriptive part (chapters 1–4) is followed by the analytical part (chapters 5–6), which examines the nexus —people, trees and forests—in the dynamics of population and land, the drivers of deforestation and forest degradation as well as macro-economic factors and opportunities. The strategic part (chapters 7–10) is organised in a results framework design outlining the hierarchy of objectives and envisaged outcomes. The NFP has eight thematic clusters from which 25 programmes are presented. The NFP is a joint initiative of all forest sector stakeholders —representatives of national and county governments, the private sector, communities and the civil society. It mirrors the Constitution and the Kenya Vision 2030 in their values and principles as well as the goal of 10% forest cover by 2030. It also streamlines the needs of gender and marginalised groups in the management and use of forest resources. ISBN 22334 44324234

National Forest Programme 2016-2030

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