It is well documented that energy efficiency can enhance the long-term sustainability of energy supply. Studies show that efficiency in energy management could enhance the sustainability of industrial activities and reduce operational costs within the industrial sector. However, in low- and middle- income countries, industrial energy efficiency regulations are challenging due to a lack of economic incentives, inadequate policy frameworks, the high upfront cost of advanced technologies, and other energy market features.

This working paper uses political economy to examine efforts to promote industrial energy efficiency in Kenya and Uganda. The study demonstrates that, while supply-side crises often trigger a demand for energy efficiency, the pace and extent of policy adoption and implementation are primarily determined by the perceived legitimacy of the agenda by different interest groups and the political and technical capacity of institutions to monitor compliance.