This paper looks at the fuel choice and fuel substitution in Kenya and it focuses on three issues; first it
analyses the factors influencing household fuel of choices, second it studies the factors influencing
woodfuels expenditures and third, it investigates the factors that influence substitution from either
traditional or transitional fuels to modern fuels. Theoretical, the paper is founded on the basics of the
energy stack model, where households are hypothesized to combine fuels rather than to switch completely
to other fuels following a shock, as predicted by the energy ladder model. The study analysed a sample of 13 158 observations using cross sectional data from the Kenya Integrated
Household Budget Survey conducted in 2005/2006. The study employed multinomial logit model to
analyse the factors influencing household fuel use and fuel substitution respectively. It also used
Heckman model to analyse the factors determining woodfuels expenditures. The factors examined are
categorised into economic and non economic. The non-economic factors include household headship,
education, gender, location of the household size, household residence, type of dwelling, and house with
chimney, while the economic factors comprise distance to fuel source, fuel prices, proportion of
woodfuel expenditures to total household expenditure, total household expenditures, rent expenditures,
and access to electricity and water.
The results show that Kenyan households combine various fuels to meet their energy needs. In addition to
total household expenditures (a proxy for income), gender, fuel price, household, location of residence
and distance to fuel source, education and houses with chimney are factors considered by households in
making decision on fuel use. Households are also keen on factors such as household expenditures, fuel
price, education and electricity access when carrying out fuel substitutions. Total household expenditure
was not found to be important in determining amount of woodfuel expenditures but older household heads
and education are found to be the driving factors determining woodfuel expenditures.
To enhance sustainable use of woodfuel; encouraging efficient cooking stoves, revitalizing of village
woodlots and investment in commercial wood plantations is important. In addition, promotions of
modern fuel through developing dependable energy distribution systems and carrying out public
education campaigns are also recommended.