introduce some financial and non-financial incentives to promote its adoption. Such incentives may include provision of low-cost credit, subsidies or financial aid to the adopter in order to share the economic burden of the investment with the household. This has been practised in many developing regions, especially at the initial stage of biogas implementation (Gupta and Ravindranath, 1996; Ji-Quin and Nyns, 1996; Adeoti et al., 2000; Singh and Sooch, 2004). In Uganda, this can be implemented with the help of government institutions such as commercial banks, microfinance institutions such as Savings and Credit Cooperative Organisations (SACCOs), local government councils, NGOs, rural community development agencies and the private sector. However, policy- makers and all the institutions involved must exercise great caution by recognising that borrowers are not homogeneous and that the marginal productivity of credit would be different among the different borrowers. They should therefore give first priority to those in greatest need of additional capital in order to obtain the greatest impact from the credit.