Academic journal article Eastern Africa Social Science Research Review

The Cost-Benefit Analysis of Fisheries Management Systems in Kenya: The Case of Lake Victoria

Academic journal article Eastern Africa Social Science Research Review

The Cost-Benefit Analysis of Fisheries Management Systems in Kenya: The Case of Lake Victoria

Article excerpt


Fisheries management costs are widely becoming issues used to choose among policy objectives. We provide simple calculations by drawing on the experience from Lake Victoria fisheries. The study applied costbenefit analysis based on the transaction costs among four systems of individual transferable quotas, taxation, licensing and community-based management. The objective of the study was to identify a feasible policy combination for the management of Lake Victoria fisheries. It was hypothesized that the combination of community-based management and individual transferable quotas provide a feasible management framework for the fishery. The analysis provides evidence that transaction costs are lower in community=based management. The advantages of individual transferable quotas are also considerable. But, it is concluded that although community management is more cost-effective, their potential for the fishery are not obvious given the prevailing socio-economic conditions along the shores of Lake Victoria. The nature of Lake Victoria fishery is also not appropriate for the introduction of individual transferable quotas. Co-management system is therefore recommended.

Keywords: Fisheries resources, fisheries management, transaction costs, cost-benefit analysis, fishermen

(ProQuest: ... denotes formulae omitted.)


The need for fisheries management stems from the fact that fisheries resources are common property. It is known that such resources will be over-exploited and possibly irreversible unless subject to appropriate fisheries management (Amason et al. 2003). Fisheries management is characterized by multiple and conflicting objectives, multiple stakeholders with divergent interests and high levels of uncertainty in the resources being managed (Joachim et al. 2007). All these factors can lead to high levels of contention and poor results in the management process. Normally, management system evaluation which involves assessing consequences of a range of management options and analyzing the trade-offs in the performance across a range of management objectives can assist in the resolution of these issues (Joachim et al. 2007; Schnute, Maunder and Ianelli 2007).

For a long time, the objectives of fisheries management have been tailored on the scientific evidence to ensure long-term sustainability and promote optimum utilization of the fishery. According to Food and Agricultural Organization (FAO), fisheries management is an integral process of gathering and analysing information, planning, consultation, decision making, allocation of resources and implementation to ensure the continued productivity of resources. It is now apparent that management cost has a major influence on the effectiveness and enforcement of the policy. Niels et al. (2011) identified management cost as part of the social cost of fishery and noted that efficient management system based on individual transferable quotas brings a positive economic rent.

Amason (1999) defines fisheries management cost as all expenditures on activities that are necessary to develop and operate the existing fisheries management regime. Governments spend a lot of money in the understanding that fisheries management can generate benefits for the fishing community, consumers and the society in general. This shows that there may be reasons to doubt that the government can be an efficient provider to fisheries management services; therefore, co-management and community management are like promising avenues to explore (Schrant, Amason and Hannesson 2003). The level of expenditure devoted to managing fisheries suggests that the resource and its users are important to governments and the expenditure on fisheries services is essential for ensuring the sustainable use of fish stock.

For a long time, the importance of evaluating the cost of fisheries management was not given much emphasis. Many studies on governance in Lake Victoria, Kenya have focused on co-management (Nunan 2010). …

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