Internalising environmental externalities: A Coasean approach to urban solid waste management in Kampala, Uganda

Policy brief Energy and Sustainable Growth

Mismanaged urban waste in sub-Saharan Africa creates health risks and financial losses, with flooding from clogged drains costing households an average of $50 annually. A pilot study in Kampala shows that drainage nets and community meetings can effectively reduce flooding and encourage cooperative waste management.

  • Mismanaged urban solid waste poses serious health and financial challenges to low-income households, and the rate of waste generation in sub-Saharan Africa is expected to grow dramatically in the coming decades.
  • Flooding due to clogged drainage channels is the primary financial cost stemming from improperly managed household waste. On average, households we surveyed reported losing $50 in damages from flooding in the past year.
  • Our research indicates that drainage nets are an effective means of decreasing flooding, and that cross-village cooperation over net maintenance can be sustained through properly tailored community meetings.

    This report presents findings from a pilot study in Kampala, Uganda, aimed at encouraging community solutions to mismanaged household waste in low-resource communities. Our study examined the potential of drainage nets and community meetings to align the social costs and benefits of individual waste management practices. We conducted this pilot study from September to December 2025 in collaboration with officials from the Kampala Capital City Authority (KCCA).