Forest charges are levied on the production of roundwood from forest plantations and the natural forest.
The FD markets the following industrial roundwood products from forest plantations:
§ cypress sawlogs from clear-felling;
§ pine sawlogs from clear-felling;
§ cypress sawlogs from thinning;
§ pine sawlogs from thinning;
§ transmission poles;
§ pulpwood; and
§ fuelwood.
The royalty charges for these roundwood products are based on the average replacement cost principle (see Section 3.1.2) and are shown in Table 1 below. However, it should be noted that the FD does not always collect the full amount of these royalties (e.g. see Table 5 on page 16).
Table 1 Royalty charges for roundwood harvesting in forest plantations
Product |
Price (in Ksh) |
Cypress clear-felling |
1,058 per m3 |
Cypress thinning |
945 per m3 |
Pine clear-felling |
963 per m3 |
Pine thinning |
832 per m3 |
Pulpwood |
945 per m3 |
Fuelwood |
198 per m3 |
Transmission poles 5-10cm. diameter(hardwood) 10-15cm diameter(hardwood) 5-10cm diameter (softwood) 10-15cm diameter(softwood) |
4 per running metre 6 per running metre 3 per running metre 6 per running metre |
Note: transmission poles are defined as logs with a butt diameter of up to 15 cm. Logs of a larger diameter are charged at the full royalty rate for logs from thinning and clear-felling.
The royalty rates for harvesting roundwood in the natural forest are shown in Table 2 below. These royalty rates have been deliberately fixed at quite a high level, to discourage harvesting in the natural forest so that it will have time to recover from previous over-exploitation.
Table 2 Royalty charges for roundwood harvesting in the natural forest in 2000-01
Tree species (botanical name) |
Common usage of the wood |
Royalty (in Ksh/m3) |
Acacia melanoxylon |
Flooring and wood carving |
3,605 |
Afzelia quanzensis |
Wood carving and flooring |
4,681 |
Albizzia gummifera |
Timber and veneer |
2,969 |
Aningeria altissima |
Timber and plywood |
1,982 |
Antiaris toxicaria |
Timber and furniture |
2,430 |
Araucaria spp |
Timber |
280 |
Avicenia marina |
Timber and poles |
233 |
Bosquiea phoberos |
Veneer and furniture |
2,969 |
Brachylaena huillensis |
Wood carving and flooring |
4,053 |
Brachystegia speciformis |
Timber |
1,982 |
Bruguieria gymnorhiza |
Wood carving, timber and poles |
233 |
Casuarina equisetifolia |
Timber and poles |
262 |
Chlorophora excelsa |
Furniture and flooring |
4,681 |
Chrysophyllum albida |
Timber and plywood |
2,430 |
Combretum schumanii |
Wood carving and flooring |
2,969 |
Cordia spp |
Furniture |
4,053 |
Croton macrostachys |
Construction timber and plywood |
2,430 |
Croton megalocarpus |
Construction timber and plywood |
2,430 |
Cynometra webberi |
Carving |
2,969 |
Dalbergia melanoxylon |
Carving |
4,681 |
Dombeya goetzenii |
Joinery |
2,969 |
Erythrophleum guinensis |
|
2,969 |
Euphorbia spp |
Plywood |
2,430 |
Fagara macrophylla |
Furniture |
2,969 |
Ficus spp |
Plywood |
2,430 |
Funtumia africana |
Construction timber and plywood |
2,430 |
Hagenia abyssinica |
Joinery and flooring |
4,681 |
Juniperus procera |
Joinery, furniture and flooring |
5,400 |
Maesopsis eminii |
Joinery, furniture and flooring |
2,969 |
Manilkara butugi |
Timber and furniture |
2,969 |
Manilkara zanzibarensis |
Boat building, furniture and joinery |
3,889 |
Nesogordonia parvifolia |
|
2,969 |
Nesogordonia spp |
|
2,969 |
Newtonia buchananii |
Timber and furniture |
2,969 |
Newtonia paucijuga |
Timber |
2,969 |
Ocotea usambarensis |
Joinery and furniture |
9,363 |
Olea africana |
Flooring and wood carving |
4,681 |
Olea hochestetteri |
Flooring, wood carving and furniture |
4,681 |
Olea welwitschii |
Flooring, wood carving and furniture |
6,133 |
Podocarpus africana |
Timber and furniture |
3,609 |
Polyscias kikuyuensis |
Plywood |
2,969 |
Prunus africana |
Lorries and bridges and flooring |
4,681 |
Terminalia catappa |
Timber and poles |
2,969 |
Terminalia kilimandischarica |
Wood carving |
2,969 |
Trachylobium verrucosum |
Boat building, furniture and timber |
2,969 |
Trichilia roka |
Furniture and veneer |
2,969 |
Vitex doniana |
Timber and furniture |
2,969 |
Vitex keniensis |
Furniture and veneer |
4,681 |
All other species |
352 | |
In Kenya, the major non-wood forest products and services are as follows:
§ gums and resins;
§ hotels and lodges;
§ non-resident cultivation;
§ grazing;
§ soil and murram;
§ asparagus fern;
§ honey;
§ quarrying;
§ grass;
§ water; and
§ medicinal herbs.
The FD manages and regulates the extraction of all non-wood forest products (which are known locally as minor forest products). Production of most of these products is regulated through a licensing system that is based on the availability of materials and is reviewed each year. The specific charges on minor products are as indicated below.
Forest plantation development in Kenya is implemented using the non-resident cultivation method (which is a type of taungya). Under this system, crops are cultivated for a period of three years, after which the trees dominate the sites and cultivation is no longer possible. After three years, farmers are given new areas of land to cultivate.
Within available areas in each forest management unit, land is allocated to farmers for cultivation and grazing upon payment of a nominal fee of Ksh 330 per hectare per year. For grazing, an additional grazing fee of Ksh 33 per head of cattle and Ksh 11 per sheep is also charged each month. These payments are for cultivation and grazing only and it should be noted that this system does not allow the building of structures in the forest.
The forester in charge of a station is required to determine the current capacity of the area available for cultivation and grazing and to allocate the area equitably amongst eligible applicants. As there are usually gates at the entrance to a station, the receipts issued to applicants are used to determine whether they are eligible to graze their animals in the forest and the number of animals allowed to graze there.
Gums and resin extraction is subject to the following charges levied by the FD:
§ Annual license application fee: removal of the above products is controlled by annual licensing and the FD charges a licence application fee of Ksh 1,000.
§ Operating license fee: once applications are approved, successful applicants are also required to pay an annual operating license fee to the FD of Ksh 8,000 each year.
§ Volume charges: the licensee then pays charges based on the volume of gum and resin extracted. Currently, the FD charges Ksh 3 per kilogramme for gum and resin extraction.
Recreational facilities within the forests include hotels, lodges, camping sites and guesthouses. Land used for hotels and lodges is normally leased to developers for a specific period of time at a price set administratively by the FD. The developer is subsequently supposed to pay an annual land rent based on the area occupied (currently Ksh 1,650 per hectare per year), plus 15 percent of the gross receipts from guests.
The FD also develops camping sites and guesthouses. The current charges set by the FD are: Ksh 127 per adult per night and Ksh 55 per child per night in campsites and Ksh 200 per night for the use of a guesthouse.
Other minor forest products are harvested in small quantities and, where there is demand for these products, permits are issued on an ad hoc basis outside the normal licensing mechanisms. Producers of these products pay for the amounts that they take and the charges currently levied by the FD for these products are shown in Table 3.
Item |
Charge (in Ksh) |
Limestone |
33 per tonne |
Crushed stone |
55 per tonne |
Sand |
66 per tonne |
Silica |
198 per tonne |
Murram |
110 per tonne |
Soil |
66 per tonne |
Grass |
7 per head load |
Moss |
83 per head load |
Asparagus |
19 per kg |
Bamboo tips |
22 per 25 kg |
Red ochre |
17 per head load |
In addition to the charges listed in Table 3, quarry operators are also required to pay an annual licence application fee of Ksh 1,000 and, if their application is successful, an annual operating license fee of Ksh 8,000. Quarrying in forest areas mainly involves the removal of building stone and murram and applications are grouped together for purposes of levying the annual operating license fees.
The main focus of the FD is the production of roundwood, but the FD also issues licences for producers of processed forest products. All producers pay an annual licence application fee of Ksh 1,000 and, if their application is successful, they also pay the annual operating licence fees shown in Table 4. For sawmills, these fees are graduated according to the size of the sawmill and three size classes are used for this purpose.
Table 4 Annual operating licence fees for producers of processed forest products
Category |
Licence fee (in Ksh per year) |
Special licence (pulp and paper mill) |
120,000 |
Large-scale sawmills |
70,000 |
Medium-scale sawmills |
30,000 |
Small-scale sawmills |
15,000 |
The FD does not levy any charges on forest products trade. However, all exports of wood products must be graded and exporters must pay a grading charge for this service. This levy is paid to individuals who are gazetted by the government as timber graders.
The charges listed above are only those charges that are paid to the FD. In addition, many individuals and companies operating in the forestry sector also have to pay a range of other charges, fees and taxes to local and central government. These include the following:
§ Value Added Tax (VAT): companies and individuals that have a significant turnover must register for VAT purposes and charge VAT on their sales (which is then remitted to the central government).
§ Income taxes: companies and individuals must also pay personal and/or corporate income taxes to the central government.
§ Cess charges: these charges are paid to local authorities for developments such as roads, bridges and other welfare facilities. However, there are instances where the funds generated from these charges are used to finance projects unrelated to the activities for which they were collected (e.g. payment of salaries for local authority staff). The amounts paid vary from one local authority to another and these charges are usually collected at roadside barriers erected by the local authorities.
§ Trading license fees: these are paid to the central government and local authorities. The amounts charged as trading licence fees vary, depending on the size of the industry and the products traded.
§ Catering levy and service charges: privately operated recreational establishments may also have to pay a catering levy. Local authorities may also levy other service charges on companies for a variety of services.
§ Training levy: with a view to improving efficiency in the wood industry, the government collects a training levy to cover the expenses of training sawmill employees. This levy is collected from registered sawmills and amounts to 0.25 percent of the gross value of monthly sales. The Department of Industrial Training (under the Ministry of Public Works) collects the levy and disburses it to various designated training centres.
In addition to the mandatory charges listed above, individuals and operators in the forestry sector may also pay other charges or have to meet certain obligations as part of their operations. These include the following:
§ Infrastructure development: large sawmills may have to contribute to infrastructure development (especially road maintenance) where government funding is inadequate. These charges are usually agreed between the sawmills and respective local authorities.
§ Support to afforestation programmes: in areas that have been harvested, companies may have to support afforestation through cost sharing arrangements with the FD.
§ Support to research: the pulp and paper mill contributes to some forest research programmes.
§ Rehabilitation of quarry sites: after sites have been mined, companies are required (under the Mining Act) to rehabilitate these sites. Companies deposit a bond to guarantee that the rehabilitation work will be implemented, but the amounts deposited are currently so low that they would not cover the cost of such rehabilitation if the operators defaulted.
Except for the rehabilitation of the quarry sites, these charges are largely voluntary and are geared towards augmenting government efforts towards afforestation.
The Forest Act (Cap. 385 of the Laws of Kenya) stipulates various fines for committing forest offences, which vary depending on the nature of the offence committed. The Act also allows for compounding of offences at the forest station by a gazetted forest officer.
