Water,Sanitation And Hygiene Finance (Wash-Fin) Kenya

USAID

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Abstract: Kenya recorded its first case of COVID-19 on March 12,2020,prompting the government to institute immediate containment measures meant to protect the public.1 These containment measures have had adverse effects on the different sectors of the economy,including the water and sanitation sector. In the water sector,this has been exacerbated by government directives to Water Service Providers (WSPs) against disconnecting water over unpaid bills. Based on an initial assessment by the Water Services Regulatory Board (WASREB),revenue collection by WSPs dropped by 50 percent2 or more of pre-pandemic levels,3 limiting WSPsâ?? ability to pay for key inputs,with electricity being one of the critical expenses. Raw water requires treatment and eventually conveyance before being delivered to users. In this energy-intensive process,electricity is needed to operate pumps and other water treatment equipment. Electricity accounts for 30-45 percent of the total operational cost for all WSPs in the country. 4 In order to keep water services running,government directed the Kenya Power and Lighting Company (KPLC) not to disconnect WSPsâ?? electricity. This has given relief to the WSPs,although they are continuing to accumulate arrears,which ultimately must be paid. How are the WSPs managing these electricity bills and what impacts are they having on their operational efficiencies? Are there ways in which the electricity bills can be better managed now and in the future? This policy brief attempts to answer these questions in order to contribute to ongoing discussions on how to ensure continued delivery of WASH services during and after the COVID-19 pandemic. The brief is based on interviews undertaken by USAIDâ??s Water,Sanitation and Hygiene (WASH-FIN) Project Kenya with five WSPs that usually have high electricity billsâ??Thika Water and Sanitation Company (THIWASCO),Mombasa Water and Sanitation Company (MOWASCO),Nakuru Water and Sanitation Services Company (NAWASSCO),Malindi Water and Sanitation Company (MAWASCO),and Nzoia Water and Sanitation Company (NZOWASCO).