Impacts of Carbon Sequestration Projects on Household Income, and Consumption Expenditure of Smallholder Farmers in Meru County, Kenya

Mitigation of climate change has led to the initiation of carbon sequestration projects in the developing countries in compliance with the Kyoto protocol of 1997. The protocol goal was for industrialized countries to reduce their greenhouse emission by funding carbon projects in developing countries. The study focused on voluntary carbon projects involving smallholder farmer practicing agroforestry. The impacts of these projects on farmers’ household income and consumption expenditure were evaluated. A survey and quasi-experimental research design targeting 207 smallholder farmers was conducted in three wards within Igembe South Sub- County namely Athiru Gaiti, Akachiu and Kiegoi/Antubochiu. Data was collected from secondary sources and primary sources. The data was analyzed using propensity matching techniques. The results showed participation in the carbon sequestration program has a significant impact on the income (t= -3.8081 w/df 205, p=0.0002) at a significant level 0.05. Consumption expenditure of the participant was also significant (t= -4.7034 w/df 205, p= 0.0000). Exotic tree species were more preferred to indigenous trees species. Grevillea robusta (A. Cunn. Ex R. Br) although naturalized, was the most preferred exotic tree species (33.9%) while (17%) of the respondents planted Cussonia holstii (Harms ex Engl.) - an indigenous tree species. Income status of majority (86%, f=77/90) farmers participating in the carbon program increased. Expenditure status of majority (68%, f=61/90) of participating farmers in the project also increased. Savings, inflation, alternative uses led to decrease in consumption expenditure. The study recommends the carbon sequestration project be expanded in more areas, conduction of awareness campaigns to reach more farmers, increase of the carbon credit amount paid to the farmer, the project proponent and partners to continue assisting farmers with tree seedlings for free. The study also recommends use of multipurpose exotic tree species since they have a fast growth rate