This paper estimates price and fuel expenditure elasticities of demand by applying the linear Approximate Almost Ideal Demand system (LA-AIDS) to 3665 households sampled across Kenya in 2009. The results indicate that motor spirit premium (MSP). automotive gas oil (AGO) and lubricants are price elastic while fuel wood, kerosene, charcoal, liquefied petroleum gas (LPG) and electricity are price inelastic. Kerosene is income elastic while fuel wood. Charcoal. LPG, electricity. MSP and AGO are income inelastic. The results also reveal fuel stack behaviour, that is, multiple fuel use among the households. Main policy implications of the results include increasing the penetration of alternative fuels as well as provision of more fiscal incentives to increase usage of cleaner fuels. This not withstanding however, the household income should be increased beyond a certain point for the household to completely shift and use a new fuel.

This paper analyzes consumer satisfaction in the energy sector in Kenya to assess the quality and level of service delivery. By use of the European Consumer Satisfaction Index (ECSI), the paper estimates consumer satisfaction in biomass, petroleum, electricity and renewable energy subsectors. The findings are that consumer satisfaction is highest in the renewable energy sub sector at 74.7% followed by petroleum at 62.8%. The electricity sub sector has the lowest consumer satisfaction of 53.06%. Further, it is found that the image of renewable energy providers is also the highest at 72.5% followed by that of petroleum companies at 63.1%. In the electricity sub sector, perceived value scored the highest at 64.2%. The paper concludes that image of a service provider, loyalty of consumers, consumer expectations, perceived value, perceived quality and the way complains are handled are very important factors that determine consumer satisfaction levels. It is recommended that for monitoring and evaluation purposes in the performance of the energy sector, the Energy RegulatoryCommission(ERC) could use the consumer satisfaction index level to evaluate whether the regulatory policies and their implementation are bearing fruit where a high index would be associated with good performance and vice versa.

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