Analysis of principals and potential partnerships for tree outgrower schemes in Western Kenya.paper presented in the proceedings 4th scientific conference.

Abstract

The forestry industry in Kenya is undergoing tremendous transformation occasioned by the shrinking supply and rising demands for wood in the construction and other sectors. Trees on farms and settlements are increasingly gaining importance as a complimentary source to declining public forests. The government has enacted favourable policies and regulatory framework for promotion of farm forestry in collaboration with various stakeholders. Among the key reforms are encouraging formation of producer associations and formation of partnerships between tree growers and major wood using industries to guarantee markets for tree products from farms. However, there is limited experience on the type of partnerships that industrial roundwood consumers and small scale tree growers can undertake jointly. To bridge the gap KEFRI initiated a Study to document relevant cross country experiences and local initiatives in western Kenya. The results reveal that there are various categories of model out-grower schemes relevant to Kenyan conditions ranging from market assurances, technical and financial and financing and land lease agreements. The study revealed that there are some key principals that encourage and sustain partnerships that include mutual trusts, fair negotiation process, longer learning process and equitable share of benefits and risks. The options for financing partnerships range from mobilization of savings, bank credits, joint ventures, donor support and micro financial institutions. The conditions in western Kenya making it conducive to formation of partnerships include availability of large number wood based enterprises, efficient marketing systems and vibrant farm forestry activities. Though in western Kenya most partnerships are informal or not a product of any negotiated process but it is forms a milestone development that need nurturing to enhance the potential supply capacity of farm forestry and income opportunities from tree based enterprises. (Words 258)