Kenya needs about € 4.3 billion for water development in the next five years to meet the ever-rising domestic and industrial needs of the population.
However, the state can only raise about € 1.7 billion. The gap, according to technocrats from the ministry, will be plugged in by the private sector through the newly-enacted Public Private Partnership (PPP) framework.
Mr. James Teko, the Principle Secretary in the Ministry of Environment, Water and Natural Resources has noted that to implement the Water Sector Plant there is a need to rope in the private money.
“It is clear that all required funds to implement the water sector activities cannot be obtained from the national budget or donor support alone. Hence other financing channels needed to be explored,” Mr. Teko said.
Mr. Teko said this during the second National Conference on Public Private Partnership in the water sector held at a Nairobi hotel in October. The event was organised by SNV Netherlands Development Organisation in conjunction with the government.
The conference that converged key players in the water sector ranging from financiers, policy-makers and water providers, sought to find constructive ways of utilising the PPP framework in the water sector and boost the supply of clean, reliable and affordable water.
However, delegates bemoaned the fact that the private sector has be off been slow from participating in major public investment in the water sector.
Dr Ronoh Tumising, the Legal Advisor at the Treasury explained that the Kenya’s framework on PPP is ready for adoption. He noted that different models are in existence, which interested investors can pick from.
“The government is keen in enjoining the private sector in major public projects. The IPP framework is prolific enough to engage investor in all sectors including water. What we need now is to encourage investor to come on board and take advantage of the new systems,” Dr Ronoh stated.
The conference was alive to the fact that the private sector philosophy of efficiency, effectiveness and professionalism is heavily needed in the water sector.
Still, water expert, Jan Jannsens, explained that the new devolution dispensation has offered investors a new window of investment in the water sector.
Speakers were of the opinion that water tariffs in the country should be set in relation to location instead of a blanket rate. This way, the water sector framework will afford investors to make profit at the end while serving the society.
The PS noted that there is a need to develop an enabling environment for private sector participation in the water economy.
The conference convenor, Chiranjibi Tiwari of SNV Netherlands Development Organisation, exuded optimism that Kenya is on the cusp of a major investment in the water sector. Tiwari noted that though progresses has been slow it in the PPP uptake, investors are seeing the new opportunities in form of the PPP framework, a new constitution and the ever demand for quality water delivery systems.
“Kenyans are ready to pay for water if it is reliable, and quality. It is time the private sector seized the states support and consumer commitment to invest in the sector,” he said.
This conference comes in the wake of the news that high-yielding aquifers have been discovered in Turkana and that for the country to actualise its industrialisation dream, water is indispensable to drive the economy.
“Kenyans are ready to pay for water if it is reliable, and quality. It is time the private sector seized the states support and consumer commitment to invest in the sector,” he said.