Wastes, which are the by-products of consumption, are a growing problem in the urban and peri-urban areas of the Lake Victoria region largely due to high urban population growth rates, consumption habits, low collection rates and hence waste accumulation. Whereas the biodegradable proportion is high and could be reutilized, a few have tapped the economic potential of this waste. This study was conducted to explore the potential alternatives and determinants of waste separation and utilization among urban and peri-urban households in the Lake Victoria crescent. A random sample of households in five urban and peri-urban areas of the crescent were selected and surveyed. Logit models were used to establish the factors influencing waste separation and utilization in urban and peri-urban areas of the lake crescent. Results indicate that, gender, peer influence, land size, location of household and membership of environmental organization explain household waste utilization and separation behaviour. Campaigns for waste separation and reuse should be focused in the peri-urban areas where high volumes of wastes are generated and accumulate. Social influence or pressure should be used to encourage more waste reuse and separation.