Financing Small Piped Water Systems in Rural and Peri-Urban Kenya

In Kenya, community run small-scale water systems play a critical role in supplying and improving access to water services in peri-urban and rural areas. This is largely because municipally-owned water services providers currently supply only 25 pe...

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Bibliographic Details
Main Author: World Bank
Format: Working Paper
Language:English
en_US
Published: Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2011/09/15147010/financing-small-piped-water-systems-rural-peri-urban-kenya
http://hdl.handle.net/10986/17316
id okr-10986-17316
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO FINANCE
ACCESS TO FINANCING
ACCESS TO WATER
ADMINISTRATIVE COSTS
AFFORDABILITY
ALTERNATIVE FINANCING
AVERAGE MONTHLY REVENUE
AVERAGE MONTHLY WATER BILL
BALANCE SHEET
BALANCE SHEETS
BANK ACCOUNTS
BANK DEPOSITS
BANK LENDING
BANK LOAN
BANKS
BOOSTER PUMPS
BOREHOLES
BORROWER
BORROWING
BUSINESS DEVELOPMENT
BUSINESS DEVELOPMENT SERVICES
BUSINESS PLAN
BUSINESS PLANNING
BUSINESS PLANS
CAPACITY BUILDING
CAPITAL COST
CAPITAL COSTS
CASH FLOW
CASH FLOWS
CATCHMENT
CATCHMENT AREA
CATCHMENT LEVEL
CLEAN WATER
COLLATERAL
COMMERCIAL BANK
COMMERCIAL BANKS
COMMERCIAL LENDERS
COMMUNITY GROUPS
COMMUNITY LEADERS
COMMUNITY ORGANIZATIONS
COMMUNITY PROJECTS
COMMUNITY WATER
CONNECTION FEES
CONTRACTUAL SAVINGS
COST RECOVERY
COST SAVINGS
CREDIT ANALYSIS
CREDIT FACILITY
CREDIT GUARANTEE
CREDIT RISK
CREDIT-WORTHINESS
CREDITS
CREDITWORTHINESS
CUBIC METER
CUBIC METERS
CUSTOMER BASE
DAMS
DEBT
DEBT SERVICE
DEBT SERVICE PAYMENTS
DEMAND FOR WATER
DEPOSIT
DISTRIBUTION SYSTEM
DISTRIBUTION SYSTEMS
DOMESTIC USE
DOMESTIC WATER
DONOR INVESTMENT
DONOR RESOURCES
EARNINGS
ECONOMIES OF SCALE
ENGINEERING
EQUITY CONTRIBUTION
EQUITY CONTRIBUTIONS
EQUITY INVESTMENT
EQUITY RATIO
EXPENDITURE
EXPLOITATION
FARMER
FILTRATION PLANT
FINANCE COSTS
FINANCES
FINANCIAL ANALYSIS
FINANCIAL RESOURCES
FINANCIAL SUSTAINABILITY
FINANCIAL TRACK RECORD
FINANCIAL VIABILITY
FINANCING COSTS
FIRST LOAN
FIXED MONTHLY FEE
GOVERNMENT FUNDING
GRAVITY
HIGH INTEREST RATES
HOUSEHOLD CONNECTION
HOUSEHOLD CONNECTIONS
HOUSEHOLDS
INDIVIDUAL CONNECTIONS
INDUSTRY REGULATOR
INTEREST RATES
INTERNATIONAL FINANCE
INVESTMENT COST
INVESTMENT PLAN
INVESTMENT PLANNING
IRRIGATION
LACK OF ACCESS
LARGE UTILITIES
LEAK DETECTION
LEASE FEE
LENDER
LENDERS
LENDING DECISION
LENDING POLICIES
LIMITED ACCESS
LIMITED LIABILITY COMPANY
LOAN
LOAN AMOUNT
LOAN APPLICATION
LOAN APPLICATIONS
LOAN PORTFOLIO
LOAN PRODUCT
LOAN REPAYMENT
LOAN TERM
MAINTENANCE COSTS
MAINTENANCE REQUIREMENTS
METERING
MICROFINANCE
MICROFINANCE INSTITUTIONS
MICROFINANCE LENDING
MONTHLY WATER BILLS
MORTGAGE
MUNICIPAL WATER
NATURAL RESOURCES
NUMBER OF CONNECTIONS
OPERATING COSTS
OPERATIONAL MANAGEMENT
OPERATIONAL RISK
OUTREACH
PARTIAL CREDIT
PIPED WATER
PIPELINE
POOR ACCESS
POTABLE WATER
PRIVATE EQUITY
PRIVATE OPERATOR
PRIVATE OPERATORS
PROVISION OF WATER
PUBLIC FINANCE
PUBLIC FUNDS
RAINWATER
RAINWATER HARVESTING
RECEIPT
REGULATORY FRAMEWORK
REGULATORY OVERSIGHT
REPAYMENT PERIOD
RISK OF DEFAULT
RIVERS
RURAL WATER
SAFE WATER
SANITATION
SANITATION SECTOR
SANITATION SERVICES
SCREENS
SECURITIES
SERVICE DELIVERY
SERVICE PROVIDER
SERVICE PROVIDERS
SERVICE PROVISION
SERVICE STANDARDS
SEWERAGE ASSETS
SEWERAGE SERVICES
SHALLOW WELLS
SOFT LOANS
SOURCES OF WATER
SPRINGS
STORAGE TANKS
SUBSIDY FUNDING
SUPPLY OF WATER
SUSTAINABLE SERVICES
SUSTAINABLE WATER
TARIFF RATES
TARIFF REFORM
TARIFF STRUCTURE
TECHNICAL ASSISTANCE
TECHNICAL SUPPORT
TOWNS
TREASURY BILL
TREATMENT PLANTS
UNION
URBAN AREAS
URBAN COMMUNITY
URBAN WATER
UTILITY OPERATIONS
WATER COMPANIES
WATER CONNECTIONS
WATER CONSERVATION
WATER COVERAGE
WATER FLOWS
WATER INFRASTRUCTURE
WATER LOSSES
WATER PRODUCTION
WATER PROJECTS
WATER PROVIDERS
WATER QUALITY
WATER RESOURCES
WATER RESOURCES MANAGEMENT
WATER SALES
WATER SCHEME
WATER SCHEMES
WATER SECTOR
WATER SERVICE
WATER SERVICE DELIVERY
WATER SERVICE PROVIDERS
WATER SERVICE PROVISION
WATER SERVICES
WATER SOURCE
WATER SOURCES
WATER SUPPLIES
WATER SUPPLY
WATER SUPPLY SERVICES
WATER SUPPLY SYSTEM
WATER SUPPLY SYSTEMS
WATER SYSTEM
WATER SYSTEMS
WATER TREATMENT
WATER TREATMENT FACILITIES
WATER UTILITIES
WATER UTILITY
WATER VENDORS
WELLS
spellingShingle ACCESS TO FINANCE
ACCESS TO FINANCING
ACCESS TO WATER
ADMINISTRATIVE COSTS
AFFORDABILITY
ALTERNATIVE FINANCING
AVERAGE MONTHLY REVENUE
AVERAGE MONTHLY WATER BILL
BALANCE SHEET
BALANCE SHEETS
BANK ACCOUNTS
BANK DEPOSITS
BANK LENDING
BANK LOAN
BANKS
BOOSTER PUMPS
BOREHOLES
BORROWER
BORROWING
BUSINESS DEVELOPMENT
BUSINESS DEVELOPMENT SERVICES
BUSINESS PLAN
BUSINESS PLANNING
BUSINESS PLANS
CAPACITY BUILDING
CAPITAL COST
CAPITAL COSTS
CASH FLOW
CASH FLOWS
CATCHMENT
CATCHMENT AREA
CATCHMENT LEVEL
CLEAN WATER
COLLATERAL
COMMERCIAL BANK
COMMERCIAL BANKS
COMMERCIAL LENDERS
COMMUNITY GROUPS
COMMUNITY LEADERS
COMMUNITY ORGANIZATIONS
COMMUNITY PROJECTS
COMMUNITY WATER
CONNECTION FEES
CONTRACTUAL SAVINGS
COST RECOVERY
COST SAVINGS
CREDIT ANALYSIS
CREDIT FACILITY
CREDIT GUARANTEE
CREDIT RISK
CREDIT-WORTHINESS
CREDITS
CREDITWORTHINESS
CUBIC METER
CUBIC METERS
CUSTOMER BASE
DAMS
DEBT
DEBT SERVICE
DEBT SERVICE PAYMENTS
DEMAND FOR WATER
DEPOSIT
DISTRIBUTION SYSTEM
DISTRIBUTION SYSTEMS
DOMESTIC USE
DOMESTIC WATER
DONOR INVESTMENT
DONOR RESOURCES
EARNINGS
ECONOMIES OF SCALE
ENGINEERING
EQUITY CONTRIBUTION
EQUITY CONTRIBUTIONS
EQUITY INVESTMENT
EQUITY RATIO
EXPENDITURE
EXPLOITATION
FARMER
FILTRATION PLANT
FINANCE COSTS
FINANCES
FINANCIAL ANALYSIS
FINANCIAL RESOURCES
FINANCIAL SUSTAINABILITY
FINANCIAL TRACK RECORD
FINANCIAL VIABILITY
FINANCING COSTS
FIRST LOAN
FIXED MONTHLY FEE
GOVERNMENT FUNDING
GRAVITY
HIGH INTEREST RATES
HOUSEHOLD CONNECTION
HOUSEHOLD CONNECTIONS
HOUSEHOLDS
INDIVIDUAL CONNECTIONS
INDUSTRY REGULATOR
INTEREST RATES
INTERNATIONAL FINANCE
INVESTMENT COST
INVESTMENT PLAN
INVESTMENT PLANNING
IRRIGATION
LACK OF ACCESS
LARGE UTILITIES
LEAK DETECTION
LEASE FEE
LENDER
LENDERS
LENDING DECISION
LENDING POLICIES
LIMITED ACCESS
LIMITED LIABILITY COMPANY
LOAN
LOAN AMOUNT
LOAN APPLICATION
LOAN APPLICATIONS
LOAN PORTFOLIO
LOAN PRODUCT
LOAN REPAYMENT
LOAN TERM
MAINTENANCE COSTS
MAINTENANCE REQUIREMENTS
METERING
MICROFINANCE
MICROFINANCE INSTITUTIONS
MICROFINANCE LENDING
MONTHLY WATER BILLS
MORTGAGE
MUNICIPAL WATER
NATURAL RESOURCES
NUMBER OF CONNECTIONS
OPERATING COSTS
OPERATIONAL MANAGEMENT
OPERATIONAL RISK
OUTREACH
PARTIAL CREDIT
PIPED WATER
PIPELINE
POOR ACCESS
POTABLE WATER
PRIVATE EQUITY
PRIVATE OPERATOR
PRIVATE OPERATORS
PROVISION OF WATER
PUBLIC FINANCE
PUBLIC FUNDS
RAINWATER
RAINWATER HARVESTING
RECEIPT
REGULATORY FRAMEWORK
REGULATORY OVERSIGHT
REPAYMENT PERIOD
RISK OF DEFAULT
RIVERS
RURAL WATER
SAFE WATER
SANITATION
SANITATION SECTOR
SANITATION SERVICES
SCREENS
SECURITIES
SERVICE DELIVERY
SERVICE PROVIDER
SERVICE PROVIDERS
SERVICE PROVISION
SERVICE STANDARDS
SEWERAGE ASSETS
SEWERAGE SERVICES
SHALLOW WELLS
SOFT LOANS
SOURCES OF WATER
SPRINGS
STORAGE TANKS
SUBSIDY FUNDING
SUPPLY OF WATER
SUSTAINABLE SERVICES
SUSTAINABLE WATER
TARIFF RATES
TARIFF REFORM
TARIFF STRUCTURE
TECHNICAL ASSISTANCE
TECHNICAL SUPPORT
TOWNS
TREASURY BILL
TREATMENT PLANTS
UNION
URBAN AREAS
URBAN COMMUNITY
URBAN WATER
UTILITY OPERATIONS
WATER COMPANIES
WATER CONNECTIONS
WATER CONSERVATION
WATER COVERAGE
WATER FLOWS
WATER INFRASTRUCTURE
WATER LOSSES
WATER PRODUCTION
WATER PROJECTS
WATER PROVIDERS
WATER QUALITY
WATER RESOURCES
WATER RESOURCES MANAGEMENT
WATER SALES
WATER SCHEME
WATER SCHEMES
WATER SECTOR
WATER SERVICE
WATER SERVICE DELIVERY
WATER SERVICE PROVIDERS
WATER SERVICE PROVISION
WATER SERVICES
WATER SOURCE
WATER SOURCES
WATER SUPPLIES
WATER SUPPLY
WATER SUPPLY SERVICES
WATER SUPPLY SYSTEM
WATER SUPPLY SYSTEMS
WATER SYSTEM
WATER SYSTEMS
WATER TREATMENT
WATER TREATMENT FACILITIES
WATER UTILITIES
WATER UTILITY
WATER VENDORS
WELLS
World Bank
Financing Small Piped Water Systems in Rural and Peri-Urban Kenya
geographic_facet Africa
Kenya
relation Water and sanitation program working paper
description In Kenya, community run small-scale water systems play a critical role in supplying and improving access to water services in peri-urban and rural areas. This is largely because municipally-owned water services providers currently supply only 25 per cent of the country's population and 39 per cent of the population within their service areas. Historically, under a centralized institutional structure, a large number of communities were tasked with managing and recovering the operating costs of small piped water supply systems installed by government. The importance of these community providers has been recognized in recent reforms of the sector. These provide for a legal and regulatory framework for community based organizations to engage in water service provision outside major towns and cities. However, a host of problems complicate efforts to support these community organizations to become reliable service providers, including their limited management capacity, low operating revenues and lack of access to finance. Efforts to license and regulate the operations of community water projects have been hampered by the slow implementation of policies aimed at decentralizing water service delivery to communities in areas not covered by municipal water services providers. In spite of considerable liquidity within the Kenyan financial sector, domestic banks do not typically finance investments in water infrastructure because of the long term nature of infrastructure finance and the perceived lack of creditworthiness of rural and peri-urban small scale water providers. Efforts to license and regulate the operations of community water projects (CWPs) have been hampered by the slow implementation of policies aimed at decentralizing water service delivery to communities in areas not covered by municipal water services providers. With the considerable public financial resources available in the water sector, the size of the market for a loan linked product is likely to be limited over the medium term. However, public funds are not sufficient to build the infrastructure required to effectively meet the demand for water services: hence the increasing focus on cost recovery tariffs and the considerable initiatives underway to access supplementary financial resources from the private sector.
format Publications & Research :: Working Paper
author World Bank
author_facet World Bank
author_sort World Bank
title Financing Small Piped Water Systems in Rural and Peri-Urban Kenya
title_short Financing Small Piped Water Systems in Rural and Peri-Urban Kenya
title_full Financing Small Piped Water Systems in Rural and Peri-Urban Kenya
title_fullStr Financing Small Piped Water Systems in Rural and Peri-Urban Kenya
title_full_unstemmed Financing Small Piped Water Systems in Rural and Peri-Urban Kenya
title_sort financing small piped water systems in rural and peri-urban kenya
publisher Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2011/09/15147010/financing-small-piped-water-systems-rural-peri-urban-kenya
http://hdl.handle.net/10986/17316
_version_ 1764436399950397440
spelling okr-10986-173162021-04-23T14:03:36Z Financing Small Piped Water Systems in Rural and Peri-Urban Kenya World Bank ACCESS TO FINANCE ACCESS TO FINANCING ACCESS TO WATER ADMINISTRATIVE COSTS AFFORDABILITY ALTERNATIVE FINANCING AVERAGE MONTHLY REVENUE AVERAGE MONTHLY WATER BILL BALANCE SHEET BALANCE SHEETS BANK ACCOUNTS BANK DEPOSITS BANK LENDING BANK LOAN BANKS BOOSTER PUMPS BOREHOLES BORROWER BORROWING BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT SERVICES BUSINESS PLAN BUSINESS PLANNING BUSINESS PLANS CAPACITY BUILDING CAPITAL COST CAPITAL COSTS CASH FLOW CASH FLOWS CATCHMENT CATCHMENT AREA CATCHMENT LEVEL CLEAN WATER COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDERS COMMUNITY GROUPS COMMUNITY LEADERS COMMUNITY ORGANIZATIONS COMMUNITY PROJECTS COMMUNITY WATER CONNECTION FEES CONTRACTUAL SAVINGS COST RECOVERY COST SAVINGS CREDIT ANALYSIS CREDIT FACILITY CREDIT GUARANTEE CREDIT RISK CREDIT-WORTHINESS CREDITS CREDITWORTHINESS CUBIC METER CUBIC METERS CUSTOMER BASE DAMS DEBT DEBT SERVICE DEBT SERVICE PAYMENTS DEMAND FOR WATER DEPOSIT DISTRIBUTION SYSTEM DISTRIBUTION SYSTEMS DOMESTIC USE DOMESTIC WATER DONOR INVESTMENT DONOR RESOURCES EARNINGS ECONOMIES OF SCALE ENGINEERING EQUITY CONTRIBUTION EQUITY CONTRIBUTIONS EQUITY INVESTMENT EQUITY RATIO EXPENDITURE EXPLOITATION FARMER FILTRATION PLANT FINANCE COSTS FINANCES FINANCIAL ANALYSIS FINANCIAL RESOURCES FINANCIAL SUSTAINABILITY FINANCIAL TRACK RECORD FINANCIAL VIABILITY FINANCING COSTS FIRST LOAN FIXED MONTHLY FEE GOVERNMENT FUNDING GRAVITY HIGH INTEREST RATES HOUSEHOLD CONNECTION HOUSEHOLD CONNECTIONS HOUSEHOLDS INDIVIDUAL CONNECTIONS INDUSTRY REGULATOR INTEREST RATES INTERNATIONAL FINANCE INVESTMENT COST INVESTMENT PLAN INVESTMENT PLANNING IRRIGATION LACK OF ACCESS LARGE UTILITIES LEAK DETECTION LEASE FEE LENDER LENDERS LENDING DECISION LENDING POLICIES LIMITED ACCESS LIMITED LIABILITY COMPANY LOAN LOAN AMOUNT LOAN APPLICATION LOAN APPLICATIONS LOAN PORTFOLIO LOAN PRODUCT LOAN REPAYMENT LOAN TERM MAINTENANCE COSTS MAINTENANCE REQUIREMENTS METERING MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE LENDING MONTHLY WATER BILLS MORTGAGE MUNICIPAL WATER NATURAL RESOURCES NUMBER OF CONNECTIONS OPERATING COSTS OPERATIONAL MANAGEMENT OPERATIONAL RISK OUTREACH PARTIAL CREDIT PIPED WATER PIPELINE POOR ACCESS POTABLE WATER PRIVATE EQUITY PRIVATE OPERATOR PRIVATE OPERATORS PROVISION OF WATER PUBLIC FINANCE PUBLIC FUNDS RAINWATER RAINWATER HARVESTING RECEIPT REGULATORY FRAMEWORK REGULATORY OVERSIGHT REPAYMENT PERIOD RISK OF DEFAULT RIVERS RURAL WATER SAFE WATER SANITATION SANITATION SECTOR SANITATION SERVICES SCREENS SECURITIES SERVICE DELIVERY SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SERVICE STANDARDS SEWERAGE ASSETS SEWERAGE SERVICES SHALLOW WELLS SOFT LOANS SOURCES OF WATER SPRINGS STORAGE TANKS SUBSIDY FUNDING SUPPLY OF WATER SUSTAINABLE SERVICES SUSTAINABLE WATER TARIFF RATES TARIFF REFORM TARIFF STRUCTURE TECHNICAL ASSISTANCE TECHNICAL SUPPORT TOWNS TREASURY BILL TREATMENT PLANTS UNION URBAN AREAS URBAN COMMUNITY URBAN WATER UTILITY OPERATIONS WATER COMPANIES WATER CONNECTIONS WATER CONSERVATION WATER COVERAGE WATER FLOWS WATER INFRASTRUCTURE WATER LOSSES WATER PRODUCTION WATER PROJECTS WATER PROVIDERS WATER QUALITY WATER RESOURCES WATER RESOURCES MANAGEMENT WATER SALES WATER SCHEME WATER SCHEMES WATER SECTOR WATER SERVICE WATER SERVICE DELIVERY WATER SERVICE PROVIDERS WATER SERVICE PROVISION WATER SERVICES WATER SOURCE WATER SOURCES WATER SUPPLIES WATER SUPPLY WATER SUPPLY SERVICES WATER SUPPLY SYSTEM WATER SUPPLY SYSTEMS WATER SYSTEM WATER SYSTEMS WATER TREATMENT WATER TREATMENT FACILITIES WATER UTILITIES WATER UTILITY WATER VENDORS WELLS In Kenya, community run small-scale water systems play a critical role in supplying and improving access to water services in peri-urban and rural areas. This is largely because municipally-owned water services providers currently supply only 25 per cent of the country's population and 39 per cent of the population within their service areas. Historically, under a centralized institutional structure, a large number of communities were tasked with managing and recovering the operating costs of small piped water supply systems installed by government. The importance of these community providers has been recognized in recent reforms of the sector. These provide for a legal and regulatory framework for community based organizations to engage in water service provision outside major towns and cities. However, a host of problems complicate efforts to support these community organizations to become reliable service providers, including their limited management capacity, low operating revenues and lack of access to finance. Efforts to license and regulate the operations of community water projects have been hampered by the slow implementation of policies aimed at decentralizing water service delivery to communities in areas not covered by municipal water services providers. In spite of considerable liquidity within the Kenyan financial sector, domestic banks do not typically finance investments in water infrastructure because of the long term nature of infrastructure finance and the perceived lack of creditworthiness of rural and peri-urban small scale water providers. Efforts to license and regulate the operations of community water projects (CWPs) have been hampered by the slow implementation of policies aimed at decentralizing water service delivery to communities in areas not covered by municipal water services providers. With the considerable public financial resources available in the water sector, the size of the market for a loan linked product is likely to be limited over the medium term. However, public funds are not sufficient to build the infrastructure required to effectively meet the demand for water services: hence the increasing focus on cost recovery tariffs and the considerable initiatives underway to access supplementary financial resources from the private sector. 2014-03-18T20:50:02Z 2014-03-18T20:50:02Z 2011-09 http://documents.worldbank.org/curated/en/2011/09/15147010/financing-small-piped-water-systems-rural-peri-urban-kenya http://hdl.handle.net/10986/17316 English en_US Water and sanitation program working paper CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Publications & Research :: Working Paper Publications & Research Africa Kenya