Introduction

Walk through any major market in Kenya from big marjets in Nairobi to small rural markets and you’ll find it openly displayed: sacks of black gold. Charcoal. The very commodity that KFS (Kenya Forest Service) and NEMA (National Environment Management Authority) have been fighting to eliminate for years due to its devastating environmental impact. Yet here it is, thriving in plain sight, much like the illegal sugar trade that floods our market with cheap, untaxed alternatives.

The parallel is striking. Both are illegal, both are cheap, and both thrive because they fulfill a fundamental economic logic: when legal options are unaffordable or inaccessible, the black market will always find a way.

While international organizations and government agencies focus on distributing ‘efficient’ cookstoves, they’re missing the real crisis: the fuel that powers them.

The scale of the crisis

The statistics paint a grim picture of a losing battle:

  • Charcoal remains the dominant fuel for approximately 82% of urban households and 34% of rural households in Kenya.
  • The charcoal economy is worth an estimated KSh 126 billion annually, representing one of the largest informal sectors in the country (CIFOR, 2021)
  • Kenya loses thousands of hectares of forest land annually, with charcoal production among the key drivers of deforestation.
  • Despite NEMA’s efforts, enforcement remains weak; arrests rarely lead to prosecution due to corruption, inconsistent regulation, and fragmented oversight.

This data reveals a system in crisis, but the real-world impact is even starker. A 2020 investigation by the Business Daily confirmed that despite a nationwide logging ban, the illegal charcoal trade has not diminished but flourished, with poor families bearing the highest cost as prices skyrocketed.

This is the brutal paradox of the current approach: well-intentioned policies, devoid of viable alternatives, simply make a necessary evil more expensive for the most vulnerable, enriching the very black market they aim to destroy

The Economic Logic of the Black Market

Why does illegal charcoal thrive? The answer lies in simple economics. For a family in an informal settlement or a rural village, the choice is not between “clean” and “dirty.” It’s between “available” and “unavailable,” “affordable” and “unaffordable.”

For a typical rural household:

  • Firewood: Free but labor-intensive to collect (4-6 hours daily)
  • Charcoal: KSh 800-1,200 per sack, lasting 2-3 weeks
  • LPG (6kg): KSh 2,300-2,800 for cylinder + regulator + initial fuel, then KSh 1,200-1,500 per refill
  • Electricity: KSh 3,500-5,000 for hotplate + installation, plus high recurring costs

When you do the math, charcoal becomes the rational choice for millions. It’s cheaper than LPG, more convenient than firewood, and doesn’t require the upfront investment of electric cooking.

The situation mirrors the sugar trade, where cheap illegal imports (selling at KSh 120-150 per kg) consistently undercut legal options (KSh 200-250 per kg). In both cases, the market responds to what people can actually afford, not what policymakers wish they could afford.

The Fatal Flaw in Our Current Approach

The development world’s response has been to flood the market with “efficient” charcoal stoves. These stoves might use 30-40% less charcoal, but they still use charcoal. This is like offering a “filtered” cigarette as a solution to lung cancer. Yes it might reduce the harm slightly, but it doesn’t address the fundamental problem.

Meanwhile, the rural household faces an impossible choice:

  • Do they invest in expensive LPG they can’t reliably refill?
  • Do they switch to electricity that’s either unavailable or unaffordable?
  • Or do they stick with the devil they know which is charcoal that’s available, affordable, and familiar?

Given these options, the charcoal trade doesn’t just survive; it thrives.

 A Three-Pronged Solution

To win this battle, we need to stop fighting the wrong enemy. The enemy isn’t the charcoal trader or the consumer; it’s the lack of viable alternatives. Here’s what a real solution looks like:

1. Legalize and Regulate the Charcoal Value Chain
Instead of fighting a losing prohibition battle, we should:

  • Establish sustainable charcoal production zones with proper management
  • Certify legal charcoal with traceable supply chains
  • Tax the trade to fund reforestation efforts
    This approach has worked with other sectors for example with Khat ‘miraa’ and commercial motorcycles ‘boda boda’ sectors which acknowledge the reality while bringing it into the regulatory fold.

2. Create True Fuel Alternatives, Not Just Stove Alternatives
We need to invest in affordable, accessible clean fuels:

  • Biomass briquettes from agricultural waste that can use existing stoves
  • Community LPG hubs with pay-as-you-cook models
  • Solar-powered electric cooking in areas with good sunlight
  • Biogas systems for rural households with livestock

3. Make Clean Cooking Economically Logical

  • Subsidize the transition, not just the hardware (fuel subsidies > stove subsidies)
  • Develop micro-financing for fuel purchases, not just equipment
  • Create rural energy credit systems that recognize the informal economy

The Way Forward: From Prohibition to Pragmatism

The illegal charcoal trade isn’t a sign of moral failure; it’s a market signal. It tells us that our current clean cooking solutions are missing the mark. People aren’t choosing charcoal because they’re ignorant; they’re choosing it because it’s the most logical option available to them.

As long as electricity remains unreliable in rural areas, as long as LPG requires significant upfront investment, and as long as clean alternatives remain out of economic reach, the black market will continue to supply what the formal economy cannot.

The future of clean cooking in Kenya doesn’t lie in more efficient ways to burn illegal fuel. It lies in creating legal, affordable, and accessible fuel alternatives that make economic sense to the people who need them most.

We must stop fighting the charcoal trade and start competing with it. Until we change the policies, nothing changes.

References

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I am Nelly

A Maasai woman, advocate, and unrelenting voice for equity, gender justice, and sustainable energy access in marginalized communities.

This blog is my testament to the fight against systemic barriers: a space where data meets lived experience, and policy collides with the realities of those left in the dark.

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