Climate adaptation investments on agricultural land values in Kenya: a case study of Kajiado County

Abstract

Climate change poses significant risks to agricultural livelihoods, particularly in arid regions. This study investigated how climate adaptation investments are reflected in agricultural land values in Kajiado County, Kenya, focusing on climate‑smart agricultural (CSA) practices, neighbourhood attributes, environmental characteristics, and structural attributes. Using a mixed‑methods design, quantitative data from 120 farmers were analysed through a hedonic pricing model, complemented by qualitative insights from focus groups. Results show that CSA practices had no significant effect on land values once socioeconomic and locational factors such as income, land ownership, farm size, years of occupation, and distance to the nearest road were controlled. Neighbourhood attributes exerted the strongest positive influence, underscoring the role of urban expansion and location advantages. Structural attributes such as access to water, electricity, and sanitation also demonstrated a robust positive effect. In contrast, environmental attributes were not significantly capitalised into land values. In conclusion, climate adaptation investments are unevenly reflected in agricultural land markets: neighbourhood and structural attributes emerged as the most consistent determinants, while CSA practices and environmental attributes showed weaker or insignificant effects.

Keywords: Climate adaptation, climate-smart agriculture, land values, hedonic pricing model, agricultural land valuation, arid and semi-arid lands, Kajiado County, Kenya.