Effect of shrubs on soil saturated hydraulic conductivity depends on the grazing regime in a semi-arid shrub-encroached grassland

•Shrubs enhanced saturated hydraulic conductivity under grazed conditions, but no significant effect under ungrazed conditions.•Grazing reduced saturated hydraulic conductivity, but only in the interspaces.•Shrubs enhanced saturated hydraulic conductivity through a greater mass of roots and a lower bulk density.•Shrub partially offset the suppressive effects of overgrazing on saturated hydraulic conductivity.