ANNEX 1: SUMMARY OF THE KENYAN FORESTRY SECTOR

Table 13 Forest area by type, land tenure and inclusion in the tax base

Forest types	Total area (in ha)	Land tenure			Included in the tax base?
		Government	Trust	Private
Forest reserve(terrestrial)	1,200,000	1,200,000	0	0	yes
Forest reserve(mangrove)	54,000	54,000	0	0	yes
Nature reserve	27,000	27,000	0	0	no
National Park	63,000	63,000	0	0	yes
Sanctuary	500	500	0	0	yes
Marine reserve (mangrove)	14,000	14,000	0	0	no
Trust land	180,000	0	180,000	0	yes
Farm/settlement	9,720,000	0	0	9,720,000	no
Forest plantations	238,000	168,000	0	70,000	yes
Bush land	24,750,000	0	24,750,000	0	yes
Wooded grassland	10,700,000	0	10,700,000	0	yes
Woodlands	2,140,000	0	2,140,000	0	yes

Sources: IUCN: Forest cover and forest reserves in Kenya - policy and practice; FAO: FRA 2000 - Kenya indigenous forests (status, management and conservation); KFMP: 1994. Note, the last column indicates whether the forest type is a source of tax revenue for at least one type of tax.

Table 14 Number of companies operating in forestry sector

Nature of company	Number
Pulp and paper mill	1
Veneer and plywood	3
Saw milling	376
Other minor companies (general forest licensee)	304

Table 15 Summary of taxes paid by the forestry sector in addition to forest charges

Name of tax	Rate
Value added tax (VAT)	18 percent of sales value
Training levy	0.25 percent of sales value
Trade license fees	Variable
Income taxes	Variable
Cess charges	Per truck load

Table 16 List of institutions collecting and receiving taxes from the forestry sector

Name of tax	Institution collecting	Institution receiving
Value added tax (VAT)	Kenya Revenue Authority	Treasury
Training levy	Directorate of Industrial Training	Directorate of Industrial Training
Trade license fees	Local government authorities	Local government authorities
Income taxes	Kenya Revenue Authority	Treasury
Cess charges	Local government authorities	Local government authorities

LIST OF PAPERS PRODUCED UNDER THE FAO PROGRAMME ON

FINANCING SUSTAINABLE FOREST MANAGEMENT

Whiteman, A, 2001, Financing sustainable forest management: constraints and opportunities, working paper on financing sustainable forest management: FSFM/WP/01, Food and Agriculture Organization of the United Nations, Rome.

Federal Department of Forestry, Nigeria, 2001, The forest revenue system and government expenditure on forestry in Nigeria, working paper on financing sustainable forest management: FSFM/WP/02, Food and Agriculture Organization of the United Nations, Rome.

Maile, N, 2001, The forest revenue system and government expenditure on forestry in Lesotho, working paper on financing sustainable forest management: FSFM/WP/03, Food and Agriculture Organization of the United Nations, Rome.

Bekele, M, 2001, The forest revenue system and government expenditure on forestry in Ethiopia, working paper on financing sustainable forest management: FSFM/WP/04, Food and Agriculture Organization of the United Nations, Rome.

Hamissou, G, 2001, The forest revenue system and government expenditure on forestry in Niger, working paper on financing sustainable forest management: FSFM/WP/05, Food and Agriculture Organization of the United Nations, Rome.

Maiga, A B, 2001, The forest revenue system and government expenditure on forestry in Mali, working paper on financing sustainable forest management: FSFM/WP/06, Food and Agriculture Organization of the United Nations, Rome.

Tshikala, K, 2001, The forest revenue system and government expenditure on forestry in Democratic Republic of Congo, working paper on financing sustainable forest management: FSFM/WP/07, Food and Agriculture Organization of the United Nations, Rome.

Arumadri J A, 2001, The forest revenue system and government expenditure on forestry in Uganda, working paper on financing sustainable forest management: FSFM/WP/08, Food and Agriculture Organization of the United Nations, Rome.

Chakanga, M, 2001, The forest revenue system and government expenditure on forestry in Namibia, working paper on financing sustainable forest management: FSFM/WP/09, Food and Agriculture Organization of the United Nations, Rome.

Yalibanda, M, 2001, The forest revenue system and government expenditure on forestry in Central African Republic, working paper on financing sustainable forest management: FSFM/WP/10, Food and Agriculture Organization of the United Nations, Rome.

Mbugua, D K, 2001, The forest revenue system and government expenditure on forestry in Kenya, working paper on financing sustainable forest management: FSFM/WP/11, Food and Agriculture Organization of the United Nations, Rome.