Co-operative Bank of Kenya has signed a landmark partnership with key players in the water sector, including Aqua for All, Water.org, and the Water & Sanitation Services Provider Association (WASPA). This Public-Private Partnership (PPP) is set to transform water access and sanitation in Kenya, addressing critical challenges in infrastructure, financing, and efficiency across urban, peri-urban, and rural communities.
The collaboration aims to unlock over Sh500 million in loan facilities dedicated to medium-sized water infrastructure projects, thanks to Co-op Bank’s financing solutions. Lydia Rono, Director for Corporate and Institutional Banking at Co-op Bank, highlighted that this partnership will provide water service providers (WSPs) with low-cost financing, offering incentives such as loan rebates for successful project completion and moratoriums on principal repayment during the construction phase. This tailored financing will enable WSPs to expand infrastructure, conduct pipeline extensions, drill boreholes, and install water meters, significantly enhancing water supply reliability.
“This partnership brings together extensive experience in finance, technical assistance, and infrastructure development,” said Rono. “We believe it will improve lives and livelihoods across Kenya by expanding access to clean water and sanitation.”
The partnership goes beyond financing, offering technological assistance through training and support for project development, proposal writing, and monitoring. This technical support ensures projects meet both financial and operational standards, promoting long-term sustainability and effective impact. Aqua for All, which will manage the Sh500 million loan fund, aims to support at least 15 projects that will improve water and sanitation access for over 50,000 Kenyans.
Francis Musinguzi, Water.org Africa Regional Director, stated that the program will assist WSPs in creating bankable proposals and provide capacity-building resources for both the water providers and Co-op Bank’s project financing team. “We will support WSPs in developing projects that are financially viable, technically sound, and impactful,” he said.
Aarno Keijzer, Lead Impact Finance at Aqua for All, emphasized that the partnership also addresses Non-Revenue Water (NRW) reduction, a major issue for Kenyan water utilities, by promoting projects that enhance operational efficiency and service reach. This intervention is seen as a strategic effort to curb water losses and boost the sector’s sustainability.
With this collaboration, Co-op Bank and its partners are aligned with Kenya’s Vision 2030, which emphasizes sustainable water access as vital for national growth. By tackling the fundamental barriers to water access and sanitation, this initiative will drive social well-being, economic resilience, and environmental sustainability, setting a model for future partnerships in essential services across Kenya.
