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Micro-finance for Small Water Schemes - Kenya

Country   (and Region): Kenya  (Africa)
Sector(s): Water and Sanitation
Activity Objectives:

The project aims to increase access to and efficiency in water supply services for the poor in rural and peri-urban areas of Kenya through investments in selected community sub-projects. The project consists of the following parts:
 

  • Part A: Investment Financing

Provision of a construction Sub-Grant to creditworthy Beneficiaries for the purpose of implementing sub-projects which meet the criteria laid out in the Operations Manual, including:
 

  1. Establishment of new water services through construction of water reservoirs and water tanks, drill bore-holes, install pipes and purchase and install water meters and other related water supply infrastructure.
  2. Rehabilitation and augmentation of existing water supply services through a range of activities including purchasing of standby pumps; extending the pipe network; installing of zonal, mass and consumer meters to enhance audit facilities; erecting chlorine dosers; and rehabilitation and extension of storage tanks.
     
  • Part B: Project Management and audit

Provision of auditing services for the effective implementation, monitoring and supervision of the Project. Subsidies for technical assistance to community sub-projects.

For more information visit: http://go.worldbank.org/PNQH0BC6T1

Project Update:

A Grant Agreement was signed on December 6, 2006. Up to June 30, 2010, the number of people verified to have benefited from this pilot is19,620.

Development Impact:

GPOBA’s grant will provide subsidies to about 21 Community Water Projects

GPOBA's role:

GPOBA funding will finance subsidies to be disbursed to community water schemes upon achievement of service coverage. Detailed specifications of outputs will be developed as part of the proposed pilot through a participatory process with selected communities, to ensure that outputs reflect their choices and ability to sustain services.

Activity Type: Subsidy Funding

GPOBA Technical Assistance: US$260,000
GPOBA Grant: US$2,930,000
OBA database project page: http://www-esd.worldbank.org/obadata/index.cfm?page=projects&pa=3&prj=340
 
Grant Recipient: K-Rep Bank Limited, a microfinance institution in Kenya, will administer GPOBA’s grant. Its share holders include International Finance Corporation (IFC) and Shore Bank. K-Rep Bank will provide upfront construction financing to qualified CWP applicants following its due diligence process. GPOBA grants will be received by community water projects upon achievement of agreed upon outputs.
Environmental/Social Categorization:

"B" To access EIA: http://go.worldbank.org/PNQH0BC6T1

Approval date: Oct 2006
Task Manager:

Patrick Nduati Mwangi

Status: Active