Wetland Ecosystem Service Use and Household Welfare: Econometric Evidence from the River Nyando Basin, Kenya

Abstract:

Wetland ecosystems play a critical role in supporting rural livelihoods and maintaining environmental sustainability, yet they face increasing pressure from overutilization, weak institutional frameworks, and rapid land-use conversion. While general livelihood studies exist, there remains a critical empirical knowledge gap regarding the precise quantitative influence of specific wetland ecosystem services on household economic well-being, as monetary metrics that correlate household utility with vital regulating and cultural services are historically missing from national statistics. This study determined the influence of wetland ecosystem service utilization on household welfare and economic well-being within the River Nyando Wetland ecosystem in Kisumu County, Kenya. Grounded in Welfare Economics Theory and Common-Pool Resource (CPR) Theory, the study adopted an explanatory research design incorporating a cross-sectional descriptive survey. Primary data were collected from 377 randomly selected riparian household heads using structured questionnaires, key informant interview guides, and focus group discussion schedules. The study employed a multistage sampling strategy that combined purposive selection of sub-counties, stratified grouping of locations, and systematic random sampling of homesteads. A Binary Logistic Regression model regression model was used for data analysis to evaluate the socio-economic, spatial, and institutional determinants driving the continuous intensity of wetland resource utilization. The empirical results revealed that household income (β = 0.318, p = 0.002), land ownership status (β = 0.263, p = 0.007), and access to agricultural extension services (β = 0.391, p = 0.002) had statistically significant positive impacts on wetland utilization intensity, with a one-unit increase in income expanding the odds of household welfare improvement by 37%. Conversely, formal education level (β = -0.287, p = 0.010), physical distance to the wetland basin (β = -0.451, p = 0.001), and environmental policy awareness (β = -0.277, p = 0.016) exerted statistically significant negative effects on extraction intensity, with each additional kilometer of distance reducing the likelihood of wetland service use by 36%. The study concludes that while higher asset endowments and institutional resources enhance resource extraction efficiency to boost immediate well-being, a severe skills-resource mismatch prevents formal education from translating into sustainable welfare. Furthermore, current environmental policy awareness acts as a regulatory constraint that depresses immediate utility due to a lack of economic alternatives. The study recommends a three-pronged policy matrix: establishing specialized Technical and Vocational Education and Training (TVET) centers to equip educated residents with green- and blue-economy skills; designing a localized Payment for Ecosystem Services (PES) framework to financially reward conservation compliance; and decentralizing extension service delivery to deploy eco-friendly technology packages, such as solar irrigation pumps and non-destructive gear, along the wetland fringe.