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

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
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Washington, DC
Africa | Kenya
2014-03-18T20:50:02Z | 2014-03-18T20:50:02Z | 2011-09

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.

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