This archive report was first published on 15 July 2020.
As Kenya's water utilities grapple with financial struggles, amounting to Sh 8.9 billion owed to them, it is imperative to innovate around water access for sustainability. The operational and financial statements of most water resource firms reveal the challenges they face in achieving profitability.
According to a recent article, the operational efficiencies of these utilities stand at 43 percent, which is twice the industry standard of 20 percent. However, despite these efficiencies, the utilities are struggling to break even, mainly due to high operational costs.
The starting point for reform is board appointments, as boards adopt strategy and performance evaluation. The heavy political hand on most utilities is also visible, with professionals unable to deliver on their mandate due to 'tenderpreneurship' targets.
Strategies to address revenue shortfalls have not been embraced by utilities, with resistance to automation and better protocols on water connections dominating. To address this, alternative water delivery routes, maintenance strategies, staff outsourcing, and technology adoption are key.
One fundamental question is whether water's treatment as a public utility is effective or if treating it as a subsidized tradable commodity would yield better results. The simplest route is making the taxman a part of the revenue stream for water utilities, which would help plug revenue leakages occasioned by water cartels.
Other quick wins include legislation by the Water Resource Management Authority (WARMA) mandating borehole owners to connect a minimum of twenty households and deliver monthly reports on utilization. This would create an avenue for ensuring participation of government as an enforcer and tracking progress through the Nyumba Kumi initiative.
While access to water is measured mainly on physical reach, a public health metric on quality should be added to achieve our pledged SDG target on access to clean water and sanitation.
