The density of neem trees in parts of Malindi District in eastern Kenya was assessed to determine the sustainability of their use in the local wood-carving industry. Size and age structure of neem populations under different ownership were analyzed to establish the Annual Allowable Cut. Neem is an excellent carving wood and the available quantities along the Kenyan coast are sufficient to sustainably supply the industry of the whole country. However, because the resource comes from small farm holdings and the supply system to carving groups is not well established, further efforts are required to introduce a management regime that could be certified under the standards of the Forest Stewardship Council.