Valuation of timber and forest plantations in Kenya

PurposeThis study examines the methods of valuation of timber and forest plantations in Kenya and challenges in the valuation process.Design/methodology/approachThe study employed a case study research design. The selected case studies are the Elburgon, Kaptumo and Sitoi tea estate timber plantations within the western rainforest in the Rift Valley region of Kenya. Data were obtained from primary and secondary sources, and analysed using quantitative and qualitative approaches.FindingsThe results of the study revealed two categories of timber plantation valuation methods in Kenya, namely, the market and non-market methods. The dominant timber plantation valuation method is the income approach, where 46.51% of the valuers said they had used this method. Quantification of non-market timber benefits and the lack of data were the main challenges reported by the valuers. The study recommends the use of both market and non-market methods for the accurate and reliable estimation of the valuation of timber and forest resources in Kenya.Research limitations/implicationsThe study findings are limited to the case study areas and restricted to timber and forest plantations. Further research could focus on other geographical areas and forest ecosystems in Kenya to offer conclusive insights into valuation methods and challenges.Practical implicationsGiven the significant role and contribution of forest resources to the Kenyan economy, the results of the study will inform prudent forest management practices through (1) the accurate and reliable estimation of forest values and (2) the development of standards and guidelines for the valuation of these important natural resources.Originality/valueResearch on the valuation of forests and other natural resources in Kenya and other developing countries in Africa is quite limited. This is the first study to provide a detailed account of timber and forest plantation valuation methods in Kenya and challenges in the valuation process.