Compensation payment mechanisms.

Human-wildlife conflict (HWC) manifests through crop raiding, livestock predation, property damage, human injuries, and disease transmission, alongside often-overlooked hidden costs (HC). These hidden costs include uncompensated expenses, delayed payments, and psychosocial burdens, none of which are addressed in Kenya’s Wildlife Conservation and Management Act (WCMA) 2013. Communities in Amboseli (AE) and Mt. Kenya (MKE) ecosystems disproportionately bear these burdens, which remain under-researched in shaping compensation policies. This study estimated and compared the monetary transaction costs (MTC) of HWC in AE and MKE using the Time Value of Money concept. Future values of delayed compensation were calculated for claims unpaid for over a year. The highest losses arose from uncompensated human fatalities, averaging KES 228,763.89 (US$1,628.79) in MKE and KES 152,462.33 (US$1,085.53) in AE. Across both ecosystems, the average loss from delayed compensation reached KES 410,168.04 (US$2,919.32) annually. Significant differences in MTC due to crop damage (t = 2.175, df = 217, p = 0.031) were observed, with AE respondents expecting KES 17,081.84 (US$121.62) more than those in MKE. These disparities stem from differences in population density, land-use practices, and physical barriers. Hidden costs exacerbate community resentment, as affected households endure substantial financial and temporal burdens without adequate redress. To mitigate these challenges, a revision of WCMA 2013 is urgently needed to integrate hidden costs into compensation schemes and reduce payment delays. Addressing these issues is essential for fostering community support for conservation and ensuring sustainable coexistence with wildlife.