AfDB approves US $391 million for Kenya’s water and sanitation project

09/11/2016
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The Board of Directors of the African Development Bank Group (AfDB) on Wednesday, November 9, 2016 approved US $391 million to help finance a major water and sanitation program in Kenya.

The Kenya Towns Sustainable Water Supply and Sanitation Program is designed to improve access, quality, availability and sustainability of water supply in 19 towns and wastewater management services in 17 towns across the country.

The program aims to catalyze commercial activities, drive economic growth, improve quality of life of the people and build resilience against climate variability and change. These objectives would be achieved through construction and rehabilitation of water supply and sanitation infrastructure including expansion into informal settlements; and capacity development of water service providers, sector regulators, and women and youth.

It will provide more than 2.1 million people with reliable and sustainable water supply services and more than 1.3 million people with water-borne sewerage systems. In addition, the program will create more than 15,000 new jobs during and after its implementation.

It would further boost Kenya’s rapid urbanization, which drives GDP growth, economic transformation, increases in productivity and incomes, and employment creation. It is projected that more than half of Kenya’s population will be living in cities and towns by 2030.

The program fits with the Kenya’s Vision 2030 and its five-year Mid-Term Plan II (MTP-II), whose realization is heavily dependent on adequate and sustainable provision of water supply and sanitation services. The MTP-II prioritizes the water sector investments including expansion of water supply and sanitation in towns. The program also resonates with three of the five priority areas the Bank’s High-5s to advance Africa’s transformative agenda: Feed Africa, Industrialize Africa, and Improve the quality of life for the people of Africa.

Finally, it complements the Bank’s interventions in towns and cities in support of the Government’s efforts as it tackles the next generation of urban development challenges and reforms in the sector.

The program, to be implemented in 54 months, is estimated to cost US $451.66 million. The Bank’s loans and grants will cover 86.52% of the total program costs. The Government of Kenya will contribute US $60.87 million in counterpart funding.