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Business opportunity: Municipal water infrastructure in Kenya

Business opportunity: Municipal water infrastructure in Kenya

Apr 14, 2016
Clean water
Water technology

As a country, Kenya is thirsty for water: At about 650 cubic meters per capita, Kenya's annual water supply is well below the benchmark of 1,000 cubic meters.

Kenyan government have set an ambitious target to reach 100 % supply coverage by 2030. This means hundreds of construction and restoration projects as well as optimizing water supply and treatment processes, improving metering, quality and volume control and implementing IOT technologies. 

Water sector estimated worth 3 billion Euros per year

The World Bank is estimating Kenyan water sector to be worth 3 billion Euro annually. The sector is experiencing international interest especially by commercial banks and private investors, since Kenyan Government can cover only around 10 % of needed investment. This deficit has necessitated strategic changes to financing and public private partnerships, and looking further at enhancing revenue collection, management and reducing operation and maintenance costs. 

The economic and social developments anticipated by Kenya’s long-term planning strategy (Kenia Vision 2030) will require more high quality water supplies and sewerage (current sewage cover 16 %). Kenya therefore aims to conserve water sources and start new ways of harvesting and using rain and underground water. 2014 Water Bill, which is estimated to be issued in the 2nd quarter 2016, will bring clarity in roles, responsibilities and asset ownership.

Kenya is looking for long-term partnering. Also, there seems to be special interest for BOO or BOOT -business models.

Business Opportunities for Finnish smart water companies

Finnish companies with cost-effective solutions for constructing drinking water supply and water treatment infrastructure for rural and urban areas have good opportunities to succeed in Kenya. 

Business opportunities can also be channeled through WSTF (Water Service Trust Fund). Since inception in 2004, WSTF has had more than 192 water and sanitation projects in the rural areas have received funding with an estimated reach of 1.4 million women, men and children. Of this, 30 are completed, and 162 under implementation.

Development of Kenya’s water segment means big amount of flagship projects and programs such as: 

•    Focus on non-revenue water reduction (currently 45% of treated water)
•    Constructing and/or rehabilitating water supply systems
•    Up-grading of non gauging 100 water stations to telemetric with data-loggers
•    Rehabilitation or establishment of 100 water quality monitoring stations
•    Constructing waste water treatment plants and solid waste management projects
•    Groundwater Mapping
•    Rainwater harvesting expansion and construction of sand dams

Note also that Minister Tiilikainen will lead Team Finland Business Delegation visit to Kenya on May 24-26, 2016

Got interested in this opportunity?

More information:

Nina Jacoby
Senior Advisor, Finpro 
nina.jacoby@finpro.fi
Mobile: +358 41 442 7786

Tomas Jakobsson
Commercial Counsellor, Finpro 
tomas.jakobsson@finpro.fi
Mobile: + 358 40 564 5839 (Finland)
Mobile: + 254 712 392 044 (Kenya)  

 

 

 

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