Discussion Paper No. 116 of 2010 on To Convert or Conserve the Yala Wetland: an Economic Valuation

Abstract

Yala wetland is one of the major wetlands in Kenya that not only supports a huge species of ecosystem, but also acts as a reservoir to Lake Victoria fisheries. Also, the swamp supports livelihood of the community by the economic activities they engage in. There have been efforts to convert the swamp into a large-scale commercial agricultural activity, the recent one being leasing the wetland to Dominion Farms Limited. This has led to disruptions of the local communities’ lifestyle through relocation from their homes and destruction of the ecological ecosystem. The heavy agricultural use is also likely to threaten the fisheries in the swamp and those of Lake Victoria, which rely on the swamp as a breeding ground. With the swamp destruction likely to go on with expansion of the Dominion farm activities, it is necessary to establish whether converting the use of the wetland is viable and more beneficial than conserving it. This study evaluates the change in the Total Economic Value (TEV) of Yala wetland as a result of degradation by identifying the type of existing resources, their use values and importance in people’s every day life. The main objective of valuing wetland resources is to identify their uses, hence their importance to the livelihoods of communities as well as their environmental and functional usefulness. Economic valuation helps in avoiding the loss of environmental resources, especially those with irreversible outcomes. This assists in managing their sustainable use and in making conservation decisions...