Experts urge private sector action to avert water crisis

There is need for urgent private sector investment in integrated water resource management (IWRM).

This, experts said, will be an essential factor for mitigating operational risks and a long-term solution to Kenya's water crisis, which now poses far-reaching economic danger.

During a private sector consultation workshop that was held on Tuesday in Nairobi, speakers emphasised the shift from water use to water stewardship as a strategic imperative of water resource management.

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Hosted by Gatsby Africa, in partnership with the Kenya Private Sector Alliance (KEPSA), the forum sought to disseminate key findings from the final Kenya Water Resources Management Report, with a focus on water supply and demand trends in Kenya and the critical role of the private sector in IWRM.

The report titled, “Assessing Water Resources Management and River Basin Governance in Kenya,” was achieved by conducting a preliminary analysis of the trends in water supply and demand under several climate projections, including potentially dry, wet and hot extremes for more resilient planning of water resources.

The report highlights the initial results of a coarse Water Evaluation and Planning model for Kenya.

The management of freshwater resources in Kenya poses significant challenges in various regions, necessitating an integrated approach to water development to address demand-side issues and ensure the preservation of ecosystems.

The report said adequate funding is crucial to support activities such as restoration, infrastructure development, and technological innovation within the water sector.

The report specifically assessed water resources management within the six major catchments of Kenya, emphasising the effectiveness of policies, donor support and trends in water supply.

Dr John Wandaka, chair of KEPSA Environment, Water and Natural Resources Sector Board, called for collaboration, private sector investment and policy reforms to achieve sustainable water management and secure Kenya's development agenda.

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“We know that water is not just a human need. It is the backbone of agricultural productivity, industrial output, tourism industry, public health, energy generation and simply put, without sustainable water management, we cannot achieve sustainable economic growth,” said Dr Wandaka.

He added: “For the private sector, this report is a strategic tool. It allows us to anticipate water risks, align investments with catchment priorities, and identify opportunities for innovation — from efficient irrigation systems to advanced wastewater treatment, from data-driven
monitoring to nature-based solutions for watershed protection."

According to the report, water stress is escalating in Kenya's key economic regions, notably the Athi and Tana basins, which contribute significantly to the national economy.

The study projects these basins will face severe water shortages, with the Athi basin experiencing deficits between 57 percent and 99 percent while Tana basin 32 percent to 64 percent shortages during the dry season.

This crisis directly threatens business continuity, as manufacturers and urban service providers heavily depend on reliable water supplies.

“Water demand in Kenya is rapidly outpacing supply. Despite these challenges, Kenya is blessed with sufficient rainfall, approachable land, architecture for capturing, storing and distributing water for various domestic and economic activities," said Sam Kareithi, Country Director, Gatsby Africa.

He added: "So we have the opportunities for storing and investing in various efficiencies that can counter this trend."

On funding landscape in Kenya, the report says the water sector is funded through household water fees, donor grants, National and County revenues, commercial financing, public-private partnerships, and concessional financing.

“Major contributions come from donor funding with a bigger percentage financed through loans and credits from both bilateral and multilateral development agencies,” says the report.

It says budget estimates from the National Treasury revealed that in a span of six years between 2018  to 2024, financing from development partners amounted to Sh258.3 billion in loans and grants, money that directly went to government water-related projects.

“Further investigation on donor funding with data from the International Aid Transparency Initiative (IATI) also revealed that more financing to the water and sanitation sector in Kenya comes from international organisations, agencies and charity foundations that are either independently working with private organisations and or with the government through the Ministry of Water & Sanitation and Irrigation,” it says.

Key development partners include the World Bank Group, the African Development Bank (AfDB) and the Government of Germany among others.

Despite the substantial external funding, there exist challenges such as inadequate counterpart funding by the government, weak implementation capacity which impacts the disbursement of funds, and lengthy procurement processes among others.

Addressing these issues, it says is vital for optimising project outcomes and achieving the ambitious goals set out in the National Water and Sanitation Investment Financing Plan (NAWASIP, 2024 Impact Report), of filling the Sh 995 billion gap for universal access to safe water and sanitation by 2030.

However, financing this, the report says will require potentially sourcing from multiple avenues including private investment.

Kenya faces critical water challenges driven by climate change, population growth and urbanisation.

With over 80 percent of Kenya's landmass classified as arid or semi-arid, pressure on freshwater resources is escalating.

Coupled with rising demand across agricultural, industrial, and domestic sectors, there is a critical need for effective and inclusive water governance.

In conclusion, the report says key findings have underscored prevalent issues such as inadequate implementation of IWRM principles, widespread water pollution, degradation of habitats, conflicts over water resources, and deficiencies in regulatory frameworks.

It recommends eight issues among them enhanced stakeholder engagement to facilitate inclusive and participatory decision-making processes by fostering collaborative partnerships between governmental agencies, private sector entities, NGOs and local communities.

Two is need to invest in comprehensive capacity-building initiatives, training programs, and skill development workshops for water management professionals at all levels.

There is also a need to develop and implement integrated water resource management plans that address interrelated water issues such as pollution, habitat degradation, water scarcity, and conflicts.

Enhancing regulatory frameworks, enforcement mechanisms, and conflict resolution mechanisms to ensure compliance with water quality standards, land-use regulations, and sustainable water-use practices is another recommendation as well implementing robust data collection and monitoring systems to track water quality, quantity, usage patterns, and ecological health indicators.

Others are empower local communities through education, awareness campaigns, and participatory engagement in water management initiatives, prioritise investments in critical water infrastructure projects, including wastewater treatment facilities, irrigation systems, and flood mitigation measures.

Finally, there is a need to support research initiatives, technological innovations, and data-driven solutions in water resource management to address emerging challenges and promote sustainable practices