Water,Sanitation And Hygiene Finance (Wash-Fin) Kenya
USAID
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Abstract: This policy brief explores the critical challenge of electricity costs for Water Service Providers (WSPs) in Kenya during the COVID-19 pandemic. Amid reduced revenue collection—down by over 50%—and a government mandate to maintain services without disconnections, WSPs faced mounting arrears, with electricity accounting for 30–63% of their operating expenses. Five major utilities—THIWASCO, MOWASCO, NAWASSCO, MAWASCO, and NZOWASCO—reported high monthly bills and a cumulative debt of KES 148.5 million by mid-2020. While Kenya Power was instructed not to disconnect supply, the financial strain was unsustainable. The brief recommends short- and long-term solutions, including formalizing phased repayment agreements with Kenya Power, exploring preferential tariffs, and adopting energy efficiency measures. It draws on international examples like Italy’s deferred payment structures and proposes options such as Energy Service Companies (ESCOs), performance contracts, and pay-as-you-save models to reduce energy dependence. Strengthening financial resilience and incentivizing renewable energy use are seen as essential steps to safeguard water access during and beyond the crisis. The brief emphasizes the pandemic as a turning point—an opportunity to rethink water service delivery and sustainability in the face of future emergencies.