The objective of the study was to establish socio-economic status of selected farm forestry groups and networks currently undertaking farm forestry (FF)and the prospects of farm-level forestry enterprises in improving and sustaining the rural livelihoods in Mbeere and Tharaka, Sub-counties and Kitui County in Kenya. Methodology: Using interviews with 466 randomly selected farmers, farm forestry groups. (FFG) and farm forestry networks (FFN), assessment of the current farm-level FF-related assets and activities, FF enterprises [FFE], products and the constraints to adoption and sustainability of FFE by farmers was done. Results: Majority of farmers had an average farm size between 2-20 acres headed by females who had influence on farm activities, making them important target group for FF development and sustainability. Low level of education in Tharaka and Mbeere implied that any interventional strategies involving high level of information analysis would be difficult to sell in these areas. Several viable FFE were identified in the study areas: tree nurseries, mango orchards, woodlot, and the main products honey, mango, seedlings, and timber and charcoal. Market value chain analysis identified disorganized market linkages, high transport cost, access to credit and low technical knowhow as the main constraints to the success of FF. Conclusion: Future FF interventions need to incorporate local priorities to spur investments in FF for improved livelihoods and sustainable environmental conservation.