Irrigation potential and investment return in Kenya |
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| Institution: | 1. International Food Policy Research Institute, 2033 K Street, NW, Washington, DC 20006, USA;2. College of Economics and Management, Huazhong Agricultural University, Wuhan, Hubei 430070, China;1. State Key Laboratory of Hydrology, Water Resources and Hydraulic Engineering, Hohai University, Nanjing, 210098, China;2. Ministry of Water Resources, Irrigation, and Electricity, Wad Medani, 318, Sudan;1. Hydraulic Research Centre, P.O. Box 318, Wad Medani, Sudan;2. IHE Delft Institute for Water Education, P.O. Box 3015, 2601 DA Delft, the Netherlands;1. College of Water Conservancy and Civil Engineering, Shandong Agricultural University, Tai''an, China;2. College of Agronomy, State Key Laboratory of Crop Biology, Shandong Agricultural University, Tai''an, China;1. International Water Management Institute, 127, Sunil Mawatha, Pelawatta, Battaramulla, Colombo, Sri Lanka;2. International Water Management Institute, NASC Complex, DPS Marg, New Delhi 110012, India |
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| Abstract: | The potential for irrigation investments in Kenya is highly dependent upon geographical, agronomic and economic factors that need to be taken into account when assessing the long-term viability and sustainability of planned projects. This study analyzed large dam-based and small-scale irrigation potential and investment needs for Kenya based on agronomic, hydrological, and economic factors. The analysis of small-scale irrigation expansion shows that the potential for investment in small-scale projects in Kenya ranges from 54,000 ha to 241,000 hectares, with an internal rate of return from 17% to 32%. For the dam-based investment analysis, under low-cost assumption, 58 dams of 73 are profitable (IRR > 0). At high cost level, the number is 52. If we raise the IRR cutoff value to 12%, 32 dams are economically feasible. We showed that there is considerable scope for the expansion of both dam-based and small-scale irrigation in Kenya, and we also provided a strategic prioritization for investments in irrigation schemes and projects. |
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| Keywords: | Irrigation potential Large-scale irrigation Small-scale irrigation Internal rate of return (IRR) Kenya |
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