Abstract
Wetland resources of Nyando Wetlands support important economic and ecological activities. However, it is faced with multiple pressures from different anthropogenic Activities within the wetlands and upstream. The Nyando wetlands are facing increasing threats of reclamation for agriculture. This is bound to intensify as population pressure increases. The question therefore is; should Nyando Wetlands be conserved or converted? Using market and contingent valuation methods, within the benefit-cost analysis framework, an economic valuation was carried out to determine the benefits of conserving or converting the Nyando wetlands. The results revealed that Nyando Wetlands yield a flow of economic benefits of the consumptive goods and services estimated at about US$ 1.5 Billion (US$ 62,500 / Ha / year) with an infinite present value of US$ 75.5 Billion at 2% discount rate. Thus the reclamation of the wetlands would imply high economic costs to the government and local communities. To reduce the pressure of reclamation, it is suggested that educational campaigns on the importance of wetlands be carried out.
Key words: Wetland value, market price, contingent valuation, goods and services.
