Will Households Invest in Safe Sanitation? Results from an Experimental Demand Trial in Nakuru, Kenya

Rachel Peletz, Caroline Delaire, Joan Kones, Clara MacLeod, Edinah Samuel, Alicea Easthope-Frazer and Ranjiv Khush
Additional contact information
Rachel Peletz: The Aquaya Institute, P.O. Box 1603, San Anselmo, CA 94979, USA
Caroline Delaire: The Aquaya Institute, P.O. Box 1603, San Anselmo, CA 94979, USA
Joan Kones: The Aquaya Institute, P.O. Box 21862-00505, Nairobi 00100, Kenya
Clara MacLeod: The Aquaya Institute, P.O. Box 21862-00505, Nairobi 00100, Kenya
Edinah Samuel: The Aquaya Institute, P.O. Box 21862-00505, Nairobi 00100, Kenya
Alicea Easthope-Frazer: The Aquaya Institute, P.O. Box 1603, San Anselmo, CA 94979, USA
Ranjiv Khush: The Aquaya Institute, P.O. Box 1603, San Anselmo, CA 94979, USA

IJERPH, 2021, vol. 18, issue 9, 1-16

Abstract: Unsafe sanitation is an increasing public health concern for rapidly expanding cities in low-income countries. Understanding household demand for improved sanitation infrastructure is critical for planning effective sanitation investments. In this study, we compared the stated and revealed willingness to pay (WTP) for high-quality, pour-flush latrines among households in low-income areas in the city of Nakuru, Kenya. We found that stated WTP for high-quality, pour-flush latrines was much lower than market prices: less than 5% of households were willing to pay the full costs, which we estimated between 87,100–82,900 Kenyan Shillings (KES), or 871–829 USD. In addition, we found large discrepancies between stated and revealed WTP. For example, 90% of households stated that they would be willing to pay a discounted amount of 10,000 KES (100 USD) for a high-quality, pour-flush latrine, but only 10% of households redeemed vouchers at this price point (paid via six installment payments). Households reported that financial constraints (i.e., lack of cash, other spending priorities) were the main barriers to voucher redemption, even at highly discounted prices. Our results emphasize the importance of financial interventions that address the sizable gaps between the costs of sanitation products and customer demand among low-income populations.

Keywords: urban sanitation; willingness to pay; latrines; Kenya (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
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