Demand for Sanitation in Kenyan Urban Slums

We propose to study the demand for household connection to municipal sewage systems in informal slums in Nairobi, Kenya. Governments are investing in expensive sewerage systems to bring sanitation services to the household door. The cost-effectiveness of these investments depends on the number of households that connect to the sanitation systems. However, there are large fixed costs to connect to sewage systems including both the costs charged by the utility investment in household sanitation facilities, and pipes to connect from the house to the network. We propose to use a RCT to estimate price elasticity of the demand for connections, and the extent to which the price elasticity depends on information about the relationship between sanitation and health. We also consider complications related to collective action in multi-household compound connections, and resident versus non-resident landlords. Results from this study are critical to developing pricing/subsidy and information campaign policies to cost-effectively improve connectivity.