Many developing countries, Kenya included, want to diversify their domestic energy supply hence reduce dependence on highly volatile fossil fuel prices, enhance access to energy in rural areas, promote rural development and to reduce carbon emissions. This study was done to assess the potential for supply of biofuel feedstock for bioethanol and biodiesel production for domestic consumption and export. To achieve this, key feedstocks were identified and their environmental suitability, production and yields analyzed. Gross margin as a tool was used to make an economic analysis of the production of the feedstocks compared to that of the most prominent food and cash crops. A review of the national biofuel strategies, policies and regulations currently adopted in Kenya was also done. The study established that sweet sorghum and castor are the most environmentally suitable bioethanol and biodiesel feedstock respectively. In terms of gross margins, sweet sorghum has the highest gross margin at KSh 67,584 followed by sugarcane at KSh 37,746 and cassava at KSh 20,240 per hectare for bioethanol feedstocks. For biodiesel feedstocks, sunflower has the highest gross margin at KSh 2,921 per hectare. It is expected that this study will play a significant role in guiding the policy makers in making important decisions to drive the biofuels sector forward.
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