Kenya Pooled Water Fund (KPWF)
KIFFWA’s first area of impact was financing (investing in) an initiative that develops and finances bankable proposals for water utilities (WSPs). The initiative’s concept draws in and combines donor guarantees and local capital markets (bonds issuance) to lend the required finances to utilities at affordable rates. Our investee hopes to attract viability gap funding from development finance institutions to ensure the lowest possible rates for utilities in the water sector in Kenya.
Through this initiative, our investee expects the first pooled bond (approx. KES 3.5 Billion for 6 Water Services Providers) to be issued by the second quarter of 2018. This long-term local currency financing will enable water and/or sanitation access to about 700,000 additional people, of which about 27% are poor and or living in rural areas. We expect KIFFWA’s investee in this project to be able to plan similar bond issuances each year going forward.