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Irrigation potential and investment return in Kenya

Author:
You, Liangzhi, Xie, H., Wood-Sichra, U., Guo, Z., Wang, Lina
Source:
Food policy 2014 v.47 pp. 34-45
ISSN:
0306-9192
Subject:
economic factors, economic feasibility, hydrology, irrigation management, prioritization, viability, Kenya
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 54,000ha 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.
Agid:
5421626