Payment for Ecosystem Services Lessons Learned

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THE INTERVENTION

Nature Kenya has been championing Mt. Kenya forest restoration by forging private-public partnership through a Water Payment for Ecosystem Service Scheme. As a result of the engagement: 1.

ENGAGING IN WATER PAYMENT FOR ECOSYSTEM SERVICES FOR MT. KENYA FOREST RESTORATION Mount Kenya is a critical biodiversity hotspot— Important Bird Area, World Heritage Site, National Park and National Reserve. Mt. Kenya is one of Kenya’s ‘water towers’ and is vital for reducing the impacts of climate change by acting as a carbon sink. The Mount Kenya ecosystem feeds into the Upper Tana River basin, and the hydrologic (water storage and flow) services provided by the Mt. Kenya and Upper Tana River ecosystems are extremely important for the Kenyan economy and environment. The Upper Tana basin provides water for one of the most productive agricultural areas in Kenya and key national parks and generates half of the country’s total hydropower. Rain-fed smallholder agriculture uses about one-third of the water budget.

THE PROBLEM

The Mt. Kenya ecosystem is under serious threat of degradation. Deforestation remains the greatest threat facing the ecosystem; over the years there has been a decrease in water volume and quality due to loss of forest cover. Hydropower and domestic water reservoirs are getting silted with sediments from the degraded landscape, significantly raising water treatment costs. Rapid urban population growth and unprecedented industrial activity has given rise to increased water stress. Demand for drinking and industrial water use cannot be met. Furthermore, downstream water users, including hydropower producers, crop irrigation schemes, water abstraction and distribution companies, industries and others, are not contributing sufficiently towards upper catchment restoration. As a result local people represented by Community Forest Associations (CFAs), Community Based Organizations (CBOs) engaged in nature conservation and responsible government agencies do not have sufficient financial resources to restore Mt Kenya.

A business case was developed for the restoration of the Mount Kenya forest. Its main goal is to win highlevel commitment and support from the business sector, and their financial contributions to halt forest loss, restore degraded areas and promote sustainable production. In the business case, there is an economic justification for water quantity and quality and the negative impacts of degradation, especially on dam silting. We also captured the costs of planting a tree in Mt. Kenya.

2. A high level meeting of Nairobi-based downstream water users was convened in Nairobi, where the business case was presented. We invited water users in irrigation, hydropower generation, power transmission and marketing, hoteliers and water abstraction companies for industrial and domestic purposes. The same approach was used to convene meetings of downstream water users in Thika and Nanyuki towns. 3. The capacity of CFAs and CBOs based around Mt. Kenya to create awareness on payment for ecosystem services was enhanced. Developing institutional capacity through training on leadership, governance, financial management and marketing skills aimed to improve the local communities’ negotiation skills and credibility. 4. The business sector was encouraged to consider financial resource allocation in their budgets to enable Community Forest Associations (CFAs) to plant and nurture trees to maturity on Mt. Kenya. 5. Discussions were held with The Nature Conservancy (TNC) to create more awareness on the need for the Upper Tana - Nairobi Water Fund to support Community Forest Associations.


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Payment for Ecosystem Services Lessons Learned by Nature Kenya Publications - Issuu