**1.1 Hydrological situation**

Kenya is mainly an agricultural country with an expanding economy whose basic element for development is water. Water is required for agricultural, commercial, and domestic use Mogaka et al, (2003). However, the climate in Kenya varies by region and season to an extent that whereas some parts of the country would be experiencing floods, others will hardly receive a drop in a year. This makes accessibility to clean water unreliable in Kenya even to the areas where rainfall is abundant.

Kenya's surface water resources are distributed within five drainage basins, namely, the Lake Basin, Rift Valley, Tana, Athi, and Ewaso Ngiro as shown in the table below.


Source: Mogaka et al., (2006). Climate variability and Water Resources Degradation in Kenya: p.9.

Table 1. Showing safe yield from water resources by Major Drainage Basins in Kenya

Public Private Partnerships in the Privatization of Water Service Delivery in Kenya 209

In the rural areas, a large number of homesteads are still far from water points, especially those in the low potential areas where rivers are mainly seasonal. On the other hand, ground water resources are either limited or underdeveloped. Although ample water resources may exist, the patterns of use and accessibility may be a serious problem (Onjala, 2007). The level of coverage goes down as low as 20% during the dry seasons while seasonal water sources often dry up, making distances to water long and often exceeding 5 kilometres (Kenya. 1996). The shift in time taken to source water is occasioned by two

First is the low service coverage and inability of the local water authorities to sustain supplies of piped water to all segments of town hence consumers switching to alternative sources which are often contaminated locations. Secondly, in some of the towns, there is increased concentration of piped water uses to inferior alternative sources such as boreholes, wells, springs and nearby rivers even during wet seasons due to unreliability. Of great concern is Kenya's vulnerability to hydrological variability. According to Onjala,(2007), Kenya lacks the buffering capacity to deal with the shocks of either too little or too much rainfall to the extent that most parts of Kenya would experience insufficient

Consequently Kenya's per capita total water storage for all uses at 60 cubic metres compared to South Africa's 746, Thailand's 1287, China's 2486 (Mogaka et al 2003) is too low to meet the increasing demand and provide a buffer against floods and droughts. It is therefore, a priority to enhance water accessibility through increased storage. According to a world Bank Survey in 2001, there were, in Kenya, approximately 742,000 water connections in about 680 piped systems,350 community run water schemes, 1800 water supplies out of which about 1000 were public operated schemes, 1782 small dams, 669 water pans, 9000 boreholes. The water accessibility is more rural than an urban problem. It is not surprising that most of these alternative sources of water are majorly in the rural areas

access to water a few months after it has experienced floods.

Demand by Category 1990 2000 2010

*Urban* 573 1169 1906 *Rural* 532 749 1162 Industrial 219 378 494 Irrigation 3965 7810 11655 Livestock 326 427 621 Inland fisheries 44 61 78 Wildlife 21 21 21 Total/day 5680 10615 15937 Total cc/year(millions) 2073 3874 5817 Source: Mogaka et al. (2006). Climate variability and Water Resources Degradation in Kenya: p.16 Table 3. Showing estimated water demand, 1990-2010 (thousands of cubic metres /day)

Domestic Water

reasons:

Each of the seven the Water service Boards (WSBs) and their corresponding Water Service Providers (WSPs) in Kenya fall within respective drainage Basins for management and development of water resources and services purposes. For Example Kisumu, Homa Bay, Kisii, Kericho towns served by Lake Victoria South Water Service Board, fall within the Lake Basin. Nakuru and Eldoret towns fall within the Rift Valley Water Service Board and Rift Valley Drainage Basin. Nyeri town fall within Tana drainage Basin and Tana Water Service Board.

The precipitation and subsequent run off across parts of the country is exceptionally variable and unpredictable, hence endemic drought in the country. This is also responsible for pronounced differences in average annual rainfall, evapo-transpiration, and groundwater, hence high variability within the same season, between different seasons, and over several years. The country has a mean annual rainfall of about 500 mm, which varies from between250mm in the Arid and Semi-Arid Areas (ASALs) to 2,000 mm in the high mountain eco-systems. About 66% of the country receives less than 500 mm of rainfall as shown in the table below.


Source: Mogaka et al(2006). Climate variability and Water Resources Degradation in Kenya: p. 28.

Table 2. Showing distribution of Rainfall in Kenya

### **1.2 Water supply system in Kenya**

According to Onjala, 2007, accessibility to water in Kenya has been compounded by three legacies: First, the natural legacy where Kenya has extremely limited per capita (696 m³/ person per year) endowment of fresh water resources and high hydrological variability, both temporal and spatial. The amount of water available for utilization in any one year (among other factors) is dependent on the rate of run-off, the aridity of the catchment area and the methods of interception at various points of hydrological cycle. The second legacy is management one characterized by a rapidly growing demand for water from various sectoral uses and, on the other hand, a diminution of natural storage capacity(wetlands, catchment and aquifer recharge areas) and lack of development for artificial storage capacity(dams and reservoirs) to meet the demand as shown in the table below.

Finally, the country has a colonial legacy where national boundaries were drawn irrespective of geographic and social realities. Consequently, Kenya shares over half of its rivers, lakes, and aquifers with neighbouring nations.

Each of the seven the Water service Boards (WSBs) and their corresponding Water Service Providers (WSPs) in Kenya fall within respective drainage Basins for management and development of water resources and services purposes. For Example Kisumu, Homa Bay, Kisii, Kericho towns served by Lake Victoria South Water Service Board, fall within the Lake Basin. Nakuru and Eldoret towns fall within the Rift Valley Water Service Board and Rift Valley Drainage Basin. Nyeri town fall within Tana drainage Basin and Tana Water Service

The precipitation and subsequent run off across parts of the country is exceptionally variable and unpredictable, hence endemic drought in the country. This is also responsible for pronounced differences in average annual rainfall, evapo-transpiration, and groundwater, hence high variability within the same season, between different seasons, and over several years. The country has a mean annual rainfall of about 500 mm, which varies from between250mm in the Arid and Semi-Arid Areas (ASALs) to 2,000 mm in the high mountain eco-systems. About 66% of the country receives less than 500 mm of rainfall as

Mean Annual Rainfall (mm) Land Area (sq.km) % of Land Total

Source: Mogaka et al(2006). Climate variability and Water Resources Degradation in Kenya: p. 28.

capacity(dams and reservoirs) to meet the demand as shown in the table below.

According to Onjala, 2007, accessibility to water in Kenya has been compounded by three legacies: First, the natural legacy where Kenya has extremely limited per capita (696 m³/ person per year) endowment of fresh water resources and high hydrological variability, both temporal and spatial. The amount of water available for utilization in any one year (among other factors) is dependent on the rate of run-off, the aridity of the catchment area and the methods of interception at various points of hydrological cycle. The second legacy is management one characterized by a rapidly growing demand for water from various sectoral uses and, on the other hand, a diminution of natural storage capacity(wetlands, catchment and aquifer recharge areas) and lack of development for artificial storage

Finally, the country has a colonial legacy where national boundaries were drawn irrespective of geographic and social realities. Consequently, Kenya shares over half of its

Table 2. Showing distribution of Rainfall in Kenya

rivers, lakes, and aquifers with neighbouring nations.

**1.2 Water supply system in Kenya** 

>1000 64070 11.2 800-1000 32960 5.8 700-800 24260 4.3 500-700 73140 12.8 300-500 270410 47.4 <300 105730 18.4 Total 570570 100

Board.

shown in the table below.


Source: Mogaka et al. (2006). Climate variability and Water Resources Degradation in Kenya: p.16

Table 3. Showing estimated water demand, 1990-2010 (thousands of cubic metres /day)

In the rural areas, a large number of homesteads are still far from water points, especially those in the low potential areas where rivers are mainly seasonal. On the other hand, ground water resources are either limited or underdeveloped. Although ample water resources may exist, the patterns of use and accessibility may be a serious problem (Onjala, 2007). The level of coverage goes down as low as 20% during the dry seasons while seasonal water sources often dry up, making distances to water long and often exceeding 5 kilometres (Kenya. 1996). The shift in time taken to source water is occasioned by two reasons:

First is the low service coverage and inability of the local water authorities to sustain supplies of piped water to all segments of town hence consumers switching to alternative sources which are often contaminated locations. Secondly, in some of the towns, there is increased concentration of piped water uses to inferior alternative sources such as boreholes, wells, springs and nearby rivers even during wet seasons due to unreliability. Of great concern is Kenya's vulnerability to hydrological variability. According to Onjala,(2007), Kenya lacks the buffering capacity to deal with the shocks of either too little or too much rainfall to the extent that most parts of Kenya would experience insufficient access to water a few months after it has experienced floods.

Consequently Kenya's per capita total water storage for all uses at 60 cubic metres compared to South Africa's 746, Thailand's 1287, China's 2486 (Mogaka et al 2003) is too low to meet the increasing demand and provide a buffer against floods and droughts. It is therefore, a priority to enhance water accessibility through increased storage. According to a world Bank Survey in 2001, there were, in Kenya, approximately 742,000 water connections in about 680 piped systems,350 community run water schemes, 1800 water supplies out of which about 1000 were public operated schemes, 1782 small dams, 669 water pans, 9000 boreholes. The water accessibility is more rural than an urban problem. It is not surprising that most of these alternative sources of water are majorly in the rural areas

Public Private Partnerships in the Privatization of Water Service Delivery in Kenya 211

catering for those unable to afford official rates, while also providing water for all during

**2. The privatisation of the water supply and the institutional management of** 

The section presents various issues on water privatisation in particular and water sector reforms in general as expressed in international literature. It presents cases of small scale water service providers as an alternative water service provision mechanism whose success could either be impeded or enhanced by the methods of the privatization adopted by a

The Independent Small Scale Water Service providers include: Small companies, cooperatives, Water Kiosks, Cart Vendors, Water Tankers, Individual bore hole owners, Community Water projects, and NGO funded projects. They are independent to the extent that some are self-employed entrepreneurs or local artisans.The independent water service providers are therefore expected to register with WRMA through a lengthy process before its application to WSRB through a WSB is granted. It has to meet the respective conditions set by the two institutions, respectively, for abstraction and use of water to provide water services. Most work without formal recognition from local authorities, and are neither sub-contracted by the large water distribution companies nor in any agreement with the public sector providers. According to ADB, 2002, there are three main types of SCWSP, namely; Partners of water utilities; Vendors and Resellers; and pioneers of piped water networks include water kiosks and local standpipes. This category buy water from the large water companies and resell to the end users at a profit. Vendors and Resellers include mobile carters, truckers and household resellers. They provide water to where the water utilities are unable to serve. The category of pioneers of piped water networks provide piped water, often ground water to communities which have not accessed the piped water

In Kenya, WSRB regulations clause 5.3 stipulates that the Licensee shall undertake to ensure that all small scale water service providers operating within an area of a WSP are duly registered with a Licensee and are supervised by the main Water Service Provider through a Small Scale Service Provider Agreement in order to provide a safe, efficient and affordable service to the consumers. The main Water Service Provider shall charge a reasonable administrative fee for the supervisory roles rendered on behalf of the Licensee. The Licensee shall undertake to pursue a clustering strategy on all its publicly funded boreholes in its area of operation in order to create small scale water service providers with appropriate supervisory arrangement with due regard to creation of service providers capable of

In Eldoret town (Rift Valley Water Service Board) of Kenya, the water kiosks have been crucial for the supply of water to low income residents to the extent that whenever there was a disruption, residents of 6 out of 15 low income residential areas, namely Munyaka, Langas, Kamukunji, Huruma, Bondeni and Pioneer are greatly affected. The same is true of Nyeri town (Tana Water Service Board), Nakuru Town (Rift Valley Water Service Board)

**2.1 The independent small scale water service providers** 

shortages.

**the process** 

particular country.

from the utility companies.

financial sustainability, efficiency and growth.

where piped water is negligible. They are manifested more in small scale water service providers.

Whereas some are in somewhat agency relationship with main water service providers, some operate independently of the existing national water regulatory framework. As a way of enhancing regulatory controls, the government of Kenya has instituted water sector reforms which saw WRMA and WSRB responsible for both governance and provision of water services, respectively.

The Government of Kenya had from independence (1963) to the year 2003, undertaken the responsibility to supply Water to its citizens. This was done through the Ministry of Water development. The government did this in two ways: First, through Local Authorities, especially in urban centres. Here, the government would sell/deliver water in bulk to the local Authorities who would in turn sell water to its customers. Each Local Authority in Kenya had distinct Department of Water and Sewerage. Secondly, where the government felt there was no viable water service provider (Local Authority), it would do so directly through National Water and Conservation & Pipeline Corporation (NWC&PC). This was as provided by an act in Kenya's law chapter 372. However, from the year 2003, the government implemented the new Water Act of 2002 (Water Sector Reform Secretariat, 2005). The new Act was enacted to repeal the erstwhile Water Act chapter 372 of the laws of Kenya that had been in operation since 1962 (Republic of Kenya, 1972). This was done in order to usher in reforms in the water sector.

The reforms are entrenched in the new Act in two main aspects; the management of water resources and the management of water services. The latter is considered under Part IV of the Act covering water supply and sewerage (O. A. K'Akumu, 2005).The new Act established various institutions that were to manage both water resources and water services provision.

Alternative/Independent water suppliers supplement the supplies of water to urban dwellers that get unsatisfactory or no service from the conventional piped water network. A number of alternative water suppliers have emerged to address these shortfalls. There are two types of alternative private sector participation in the water sector that have emerged in the form of water kiosks and private water vendors.

Water kiosks are a form of public-private partnership whereby the government provides water to the kiosk where it is re-sold to the local customers.

The 'Private' component can be a private company but also a group of citizens united in a Community-based organization (CBO) and either or not supported by one or more NGOs(O.A. K'Akumu 2007). Private water vendors – also known as the "other" private sector (Solo 1999) – are "informal" and/or small-scale operators who provide water (and sanitation) services in mostly low- and middle-income neighborhoods. They operate outside the government influence and may even be illegal. These types of WSPs encompass a wide range of suppliers including drinking water companies that supply water in disposable bottles, which are sold in supermarkets, shops, kiosks and even by hawkers. There are also those who supply drinking water to offices using bigger and returnable containers. Water tankers supply homes during periods of serious water shortages although at higher rates, and finally, well-owners and cart-pushers. Cart-pushers provide tap water for those who are not served by taps, while well-owners provide cheaper water than the official supplier,

where piped water is negligible. They are manifested more in small scale water service

Whereas some are in somewhat agency relationship with main water service providers, some operate independently of the existing national water regulatory framework. As a way of enhancing regulatory controls, the government of Kenya has instituted water sector reforms which saw WRMA and WSRB responsible for both governance and provision of

The Government of Kenya had from independence (1963) to the year 2003, undertaken the responsibility to supply Water to its citizens. This was done through the Ministry of Water development. The government did this in two ways: First, through Local Authorities, especially in urban centres. Here, the government would sell/deliver water in bulk to the local Authorities who would in turn sell water to its customers. Each Local Authority in Kenya had distinct Department of Water and Sewerage. Secondly, where the government felt there was no viable water service provider (Local Authority), it would do so directly through National Water and Conservation & Pipeline Corporation (NWC&PC). This was as provided by an act in Kenya's law chapter 372. However, from the year 2003, the government implemented the new Water Act of 2002 (Water Sector Reform Secretariat, 2005). The new Act was enacted to repeal the erstwhile Water Act chapter 372 of the laws of Kenya that had been in operation since 1962 (Republic of Kenya, 1972). This was done in

The reforms are entrenched in the new Act in two main aspects; the management of water resources and the management of water services. The latter is considered under Part IV of the Act covering water supply and sewerage (O. A. K'Akumu, 2005).The new Act established various institutions that were to manage both water resources and water

Alternative/Independent water suppliers supplement the supplies of water to urban dwellers that get unsatisfactory or no service from the conventional piped water network. A number of alternative water suppliers have emerged to address these shortfalls. There are two types of alternative private sector participation in the water sector that have emerged in

Water kiosks are a form of public-private partnership whereby the government provides

The 'Private' component can be a private company but also a group of citizens united in a Community-based organization (CBO) and either or not supported by one or more NGOs(O.A. K'Akumu 2007). Private water vendors – also known as the "other" private sector (Solo 1999) – are "informal" and/or small-scale operators who provide water (and sanitation) services in mostly low- and middle-income neighborhoods. They operate outside the government influence and may even be illegal. These types of WSPs encompass a wide range of suppliers including drinking water companies that supply water in disposable bottles, which are sold in supermarkets, shops, kiosks and even by hawkers. There are also those who supply drinking water to offices using bigger and returnable containers. Water tankers supply homes during periods of serious water shortages although at higher rates, and finally, well-owners and cart-pushers. Cart-pushers provide tap water for those who are not served by taps, while well-owners provide cheaper water than the official supplier,

providers.

water services, respectively.

services provision.

order to usher in reforms in the water sector.

the form of water kiosks and private water vendors.

water to the kiosk where it is re-sold to the local customers.

catering for those unable to afford official rates, while also providing water for all during shortages.
