County Government’s Manual for Commercial Financing of the Water and Sanitation Sector of Kenya
This toolkit is designed to give the County Governments useful insights into how WSPs can utilize commercial financing to fund their infrastructure projects.It provides a standardized procedure for loan application and appraisal for investments in water and sanitation projects. Developed by a team of industry experts, this toolkit is a resource for County Governments. Other stakeholders in the sector such as Lenders and Water Service Providers (WSPs) will also be provided with similar toolkits.
The toolkit is divided into six sections focusing on:
Section 1: How to use the Toolkit - This section provides an overview of the tool kit and how it can be applied.
Section 2: Introduction to the WSS sector and the need for Commercial Financing - This section provides a high level overview of the current operations in the Water Supply and Sanitation Sector in Kenya. The section also discusses how the sector has been traditionally financed and its current financing needs.
Section 3: Role of County Governments in Water Utility Management - This section discusses an overview of the operations of a typical WSP in Kenya as well as a review of key performance indicators for the sector. It covers the role of counties in tariff setting for WSPs and introduces the concept of social connection policy.
Section 4: The Role of Counties in Commercial Financing of WSS Sector - This section builds the case for County Government helping their WSPs access commercial financing. It also covers the challenges facing WSPs in accessing commercial financing and ends with the required County and other Stakeholder approvals to enable WSP access to loans.
Section 5: The Project Appraisal & Borrowing Process - This section provides tools to assist county governments conduct an effective project appraisal. It also expounds on the borrowing process indicating the required stakeholder involvement at every stage.
Section 6: Appendices. This provides further elaborations on roles and responsibilities and provides pro-forma forms, and management diagnostic tool kits e.t.c.
