Kenya’s Ministry for Water, Sanitation and Irrigation has embraced the use of private and commercial finance to enhance water and sanitation development and provision towards Vision 2030. The Ministry’s National Water and Sanitation
Investment and Financing Plan (NAWASIP) requires KES 995 billion by the year
2030 in order to meet the target for universal access. Out of this figure, KES 313
billion (31%) is envisaged to be mobilized through Public Private Partnerships
(PPPs). Another KES 82 billion (8%) is to be mobilized through commercial
financing. This can only be realised through effective models for blended public
and private financing. The National Water Resources Strategy, 2021, also
recognizes PPPs as a viable model for financing water resources management
initiatives. These models will be explored through the following sub-themes.
Sub-themes under Thematic Area 1
a) Public Private Partnerships
Public Private Partnerships (PPPs) are envisaged to play a vital role in
mobilising resources and expertise to address water and sanitation challenges
in Kenya. The Government of Kenya has made effort to enhance the uptake of
PPPs in Kenya’s Water and Sanitation Sector, through a PPP Framework
customized to address the unique needs of the Sector. This includes the Water
Purchase Agreement which guides the PPP arrangements that may be entered
into for water and sanitation projects.
This sub-theme will elaborate on the PPP model in the Kenyan context, with
an aim towards increased collaboration between the public and private sectors,
in order to foster a conducive environment for sustainable investments. High-
level plenary sessions will present on Kenya’s potential for PPPs in water and
sanitation, and will seek to attract investors for projects in Kenya’s PPPs
pipeline.
b) Leveraging on Private Finance
Kenya is progressively moving towards blended mechanisms in order to leverage
commercial financing and bridge the financing gap. This sub-theme is aimed at
attracting private sector finance through efficient business models which address
risk factors and ensure value for money through bankable water and sanitation
interventions.
Various actors in Kenya’s Banking Sector now have programmes targeting the
Water and Sanitation Sector, but a lot more remains to be done in order to attract
the kind of resources targeted under the NAWASIP. The Country is also moving
towards financing the Sector through Capital Markets, and pursuit towards having
Institutions with capacity to be listed in the Nairobi Securities Exchange.
This sub-theme will seek to unlock private and commercial on viable and proven
business models.
c) Bankability of Water and Sanitation Sector Institutions
This sub-theme will explore the bankability and capacity of the Public Water
and Sanitation Sector Institutions to attract adequate financing through Public
Private Partnerships arrangements, and other collaborative models that
leverage on private finance. Further, the sub-theme will assess the ability of
Kenya’s Private Sector to leverage on this opportunity for PPPs, and to enter
into collaborative financing and operational arrangements for water and
sanitation interventions.
The Conference will dialogue on strategies and best practices for enhancing
the bankability of these institutions. Presentations and panel discussions will
cover topics such as credit worthiness through sound financial management,
innovative business models, and capacity enhancement.
d) Operational Efficiency
Improving operational efficiency is a critical aspect of sustainable water and
sanitation management in Kenya. This sub theme area focuses on exploring
innovative business models and strategies to optimise operations, reduce non-
revenue water (NRW), and enhance service delivery. Water Services Providers
(WSPs) in Kenya are losing potential revenue through Non-Revenue Water
(NRW), which currently stands at 45% and causing financial losses estimated
at KES 11 Billion annually. The Sector requires significant investments in
infrastructure and systems to bring down this water loss to acceptable levels of
less than 25%.
The sub-theme will delve into practical solutions and successful case studies
for achieving operational efficiency. Participants will gain insights into the
latest technologies and best practices that can be adopted for improved
efficiency in the Sector Institutions.
e) Innovative Financing to Sanitation Business
Kenya’s National Water and Sanitation Strategy (2021) recognizes the need
for both sewer and non-sewer sanitation, and the role of both public and
private actors in sanitation management within established standards. The
WASIC, 2023 – Thematic Areas Concept Page 4 of 2
Sanitation value chain has remained largely unexploited, despite proven and
numerous opportunities for profitable sanitation businesses.
The Ministry of Water, Sanitation and Irrigation in Kenya, recognizes the need
for Public Private Partnerships and other viable business models to facilitate
demand creation and sustainable uptake of sanitation services and products.
Promoting sanitation marketing and business initiatives is crucial for
addressing the sanitation challenges in Kenya. This sub-theme aims to explore
innovative approaches, case studies and best practices that will attract
sustainable investments into the sanitation value chain, resulting in enhanced
sanitation management.