FINANCE GAP

Water ministry explores ways to fund infrastructure, attain SDGs

The funding gap for NAWASIP in addition to current budgetary investment is approximately Sh652 billion for 2023 to 2030

In Summary

•SDG goal 6.1 outlines that countries must achieve universal and equitable access to safe and affordable drinking water for all by 2030.

•SGD 6.2 says countries must achieve access to adequate and equitable sanitation and hygiene for all and end open defaecation by 2030.

Water CS Alice Wahome is shown some technologies and tools on June 15, 2023
Water CS Alice Wahome is shown some technologies and tools on June 15, 2023
Image: haandout

Kenya has at least seven years to ensure the entire population has universal access to water and sanitation as part of meeting UN’s Sustainable Development Goals.

SDG goal 6.1 outlines that countries must achieve universal and equitable access to safe and affordable drinking water for all by 2030.

SGD 6.2 says countries must achieve access to adequate and equitable sanitation and hygiene for all and end open defaecation by 2030.

UN, however, warns that the current rate of drought and environmental stress could see many go without water by 2050.

The UN estimates that one in four people will have a scarcity of clean water.

It calls for the upscaling of investments in water and sanitation sectors.

Aware of the task ahead, the government through the Ministry of Water and Sanitation has been making efforts to enhance water and sanitation.

However, the sector funding gap remains a challenge for water service providers.

It is for this reason that the ministry with the support of the government of the Kingdom of the Netherlands and the Water and Sanitation Development Partners Group, commissioned a water sector study in July 2022.

The study sought to unlock the local capital market to fund the development of water and sanitation infrastructure in the country.

It was completed in February 2023.

The ministry has commenced the process of presenting the findings and recommendations of the study for adoption by water stakeholders, the private sector, development partners and other relevant actors.

“The funding gap for NAWASIP in addition to current budgetary investment is approximately Sh652 billion for 2023 to 2030,” the study says.

It warns that without alternative funding, meeting the SDG of universal access to water and sanitation in Kenya will be a tall order.

The study reveals that a variety of funding and financing sources will be required, including commercial financing if the country is to meet the total cost of implementing the National Water Sector Investment Plan (NAWASIP).

To address this, the Ministry of Water commissioned the study on how to secure funds for the sector.

The study has identified that it is possible to introduce domestic Capital Market Financing (CMF) window for the water and sanitation sector.

The study calls for additional instruments for funding the water and sanitation sector adding that local currency is available on the Kenyan capital market and could meet the financing needs of water service providers.

“Capital market financing can play a role in the medium term in the financing in the sector,” the study says.

The new bid to finance water and sanitation in the country comes against the backdrop of a new report showing that 80 per cent of households nationally have an improved source of drinking water.

The 2022 Kenya Demographic and Health Survey shows that the percentage of households with access to an improved source of drinking water is higher in urban (94%) than in rural areas (71%).

The main improved source of drinking water for urban and rural households is piped water in their dwelling, yard or plot (40% and 15%, respectively).

About 53 per cent of the households have water on their premises. The percentage is much higher in urban areas than in rural areas (73% versus 40%).

Fourteen per cent of the households (22% in urban areas and 3% in rural areas) spend more than 30 minutes round trip to obtain drinking water.

The percentage of households with improved sources of drinking water increased from 36% in 1998 to 80% in 2022.

The change is higher in rural areas where it increased by 51 percentage points (20% in 1998 to 71% in 2022), compared to urban areas which increased by eight percentage points between 1998 and 2008–09 (85% in 1998 and 93% in 2008–09).

Nationally, 68 per cent of the household population has access to at least basic drinking water services, while nine per cent have limited service, and 8 per cent use unimproved sources.

The remaining 16 per cent use surface water for drinking.

Nairobi county has the highest percentage of the population with at least basic service (99%), followed by Kiambu (94%), Nyeri (91%), and Nyandarua (90%).

About 54 per cent of the household population does not have drinking water on the premises.

On sanitation, the report says seven in 10 households have access to an improved sanitation facility.

Urban areas have a higher percentage of households with improved sanitation facilities than rural areas, with 93 per cent versus 58 per cent, respectively.

Open defaecation is still practised by five per cent of households, with nine per cent in rural areas and one per cent in urban areas.

Jerricans left by Ithanga residents at a water point on October 8, 2022.
Jerricans left by Ithanga residents at a water point on October 8, 2022.
Image: Alice Waithera
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