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.
BULK WATER SUPPLY PROJECT
KIFFWA and the lead developer, have jointly formed a special purpose vehicle, to develop a Bulk Water Supply Project (the Project)
The project is an integration of various irrigation and bulk water supply projects and agribusiness ventures. It is aimed at meeting the bulk water supply needs of domestic, livestock and land irrigation for agriculture. The project will have 3 main components:
- Bulk water supply complete with 140km; DN700mm trunk pipeline to deliver nominal 72 Mega Litres a day (ML/D) for domestic and Irrigation consumption.
- Irrigation in-field infrastructure to irrigate an area of 4,100Ha(circa-10,130acres) at Taveta Complete with commercial Grain cultivation.
- Build own and operate red meat production facility.
Expected impact of the project includes:
- Supply of clean drinking water to approximately 170,000 residents (about 50% of the population).
- Poverty Alleviation – The value adding commercial components (irrigation and livestock farming) will contribute to sustainable incomes to both local farmers and private parties.
- Improvement in food security – Irrigation will enable managing seasonality thereby ensuring year-round availability of water and access to food.
- Reduction of human-wildlife conflict – This is a perennial issue in this area of project development, often with human and wildlife casualties; majorly caused by difficulties in access to water and farming land. The project will address this by providing sufficient water and better utilization of available land resources.
- Health Improvements – Access to clean water and sanitation is expected to significantly reduce the costs of basic health care and reduce some of the common communicable diseases such as cholera, typhoid, bilharzia and other water-borne diseases.
- Gender Impact – Fetching water for domestic use is still predominantly a women’s affair in the area. It is estimated that women travel on average 5 km in search of water in the area. This distance will be significantly cut by the project.