The motivation for corporate energy strategies on energy efficiency among Kenyan firms

This study aims to investigate the drivers for adopting energy efficiency practices within an emerging market context.

Drawing on the shared value theoretical perspective, this study investigates the corporate strategy approaches toward energy efficiency in firms. This paper draws from a sample of 852 Kenyan firms from 14 sectors. This study’s analysis is based on an ordered probit model.

The findings indicate that companies that conduct energy audits, have environmental performance-based compensation for senior management, provide staff training on energy efficiency and have a written energy policy are more effective in energy efficiency and conservation efforts. Based on the findings, this study recommends that companies and policymakers incentivize corporate actions and strategies to promote energy efficiency. While this study’s findings offer critical insights, the authors recommend future research to make sectorial comparisons.

Studies focusing on drivers of energy efficiency are limited, and those that exist are often either qualitative or focused on large, listed firms. By investigating 852 companies in 14 sectors in Kenya, this study adds to the literature on firms’ energy efficiency management.