Title: A cost-benefit analysis of the fish farming enterprise productivity program project in Kenya. The case of implementation of the aquaculture development component in Meru County.

Since 2004 Kenya has experienced a dramatic increase in aquaculture production. Over a 10- year period, aquaculture production increased twenty-fold from 2004 to 2013, from about 1000 tons to more than 23000 tons. The government of Kenya has seen aquaculture as a viable option to stimulate economic growth in the country. Part of that view was the establishment in 2009 of the Fish Farming Enterprise and Productivity Program (FFEPP). The objectives of the program were manifold, not only aiming for economic return but also aiming at unemployment and better quality of food. Much effort was put into building ponds and offering support to farmers. The aim of this study is to provide an economic analysis of the FFEPP project as it was implemented in Meru county in Kenya and make recommendations based on the outcome of the cost-benefit analysis. The cost-benefit analysis was based on calculation of NPV, Benefit-Cost Ratio (BCR), and IRR. At the end a sensitivity analysis was performed to assess the uncertainty around the assumptions in the model. The data was acquired from Meru Fisheries Office and the National Aquaculture Secretariat in Nairobi. The results indicate that the project has and will produce significant economic gains for the Meru communities. The study also finds that the objectives of the FFEPP project have been achieved for Maru county but before the FFEPP is scaled up it is recommended that the government should better examine the costs vs benefits in other areas of Kenya taking into consideration climatic and geographic factors as well and social and cultural factors. The success has attracted the private sector’s attention which is an encouraging sign for the future development of aquaculture.