WATER SECTOR REFORMS KENYA’S EXPERIENCE AND LESSONS LEARNT

1. R.K. Gaita Director of Irrigation and Water Storage Ministry of Water and Irrigation 6th June, 2011 Berlin, Germany WATER SECTOR REFORMS KENYA’S EXPERIENCE AND LESSONS LEARNT

2. Background Reform Structures Implementation Experiences and Challenges Achievements Lessons Learnt2 Way forward OUTLINE

3. Kenya is categorized as a water scarce country Less than 50% of population lacked safe reliable water and basic sanitation Water resources were threatened by pollution, degradation and over exploitation leading to conflicts (and loss of life at times) Sector development was faced with institutional weaknesses, inadequate funds for operation and development, weak coordination and weak capacity amongst communities Background

4. BACKGROUND The water sector before the reforms

5. BACKGROUND The inadequate institutional set-up resulted in poor sector performance

6. BACKGROUND • Poor sector performance resulted into the following:- • Lack of or less service levels • Poor quality services • High cost of services • No voice in service provision • Increased water vending The water sector reforms were intended to address poor water performance and the effects on the poor

7. First step to address these challenges was to draw up a new policy paper (National Policy on Water Resources Management and Development - introduced in Parliament as Sessional Paper No. 1 of 1999). • Key objectives of the Policy were: • Preservation, conservation and protection of available water resources and allocation in a sustainable, rational and economical way • Supply of good quality water in sufficient quantities to meet various needs and alleviate poverty • Establishment of an efficient and effective institutional framework to guide development in the sector. • Sustainable service provision National Water Policy

8. The Water Policy placed emphasis on: • Enhancing the role of the private sector and community management for sustainable services • Improved coordination among institutions in the water sector • Review of the legal framework to address the changing need of the sector National Water Policy

9. Water Act 2002 – became operational in 2003 • Legal framework for implementation of Water Policy • The Water Act introduced new institutions for the management of water resources and water services • Essential features introduced under the institutions • Separation of water resources management from water service provision • Establishment of autonomous regulation in the sector • Decentralization of services to regional level The Reform Institutions ( Water Act 2002)

10. REFORM INSTITUTIONS

11. Water Resources Management Authority (WRMA) Responsible for the management of water resources • Classify, monitor and allocate water resources • Protect quality of water resources • Monitor and enforce permit conditions • Manage and conserve water catchments REFORM INSTITUTIONS

12. Catchment Area Advisory Committees (CAACs) • Advice WRMA on conservation, use and allocation of water resources Water Resources Users Associations (WRUAs) • Provide forum for conflict resolution and cooperative management of water resources at sub-catchment level • Enable public and communities to participate in management of water resources within catchment areas. REFORM INSTITUTIONS

13. Water Services Regulatory Board (WSRB) Responsible for regulation of water and sewerage services • Licensing of Water Services Boards • Monitoring of WSBs and WSPs • Developing tariff guidelines • Developing model licenses and performance agreements • Establishing procedures for customer complaints REFORM INSTITUTIONS

14. Water Services Boards (WSBs) Responsible for efficient and economical provision of water services • Develop water facilities • Holder of license to provide water services • Apply regulations on water services • Contract WSPs • Purchase, lease or acquire water and sewerage assets REFORM INSTITUTIONS

15. Water Service Providers (WSPS) Contracted by WSBs to provide quality water and sewerage services • Operate and maintain facilities • Comply with quality standards and service levels • Billing and revenue collection • Prospective WSPs should be legal entities • These include autonomous entities established by local authorities, community based organisations etc REFORM INSTITUTIONS

16. Water Services Trust Fund (WSTF) Assist in financing the provision of water services in areas without adequate services Water Appeals Board Hear and determine disputes in the water sector REFORM INSTITUTIONS

17. Reform Roadmap: • To implement the reforms in an orderly manner a Transfer Plan was developed and Gazetted: • Key aspects of the Transfer Plan Include the following: • Transfer of assets from Government to the new Institutions with or without any outstanding liabilities • Transfer/delinking of personnel to the new institutions • Capacity building and training of staff in the institutions (WSBs, WSPs & WRMA) • Develop contractual and financial arrangements and support to WSBs, WSPs, WRMA and WRUAs • Monitoring and evaluation of progress • Communication of reforms

18. The sector is better organized New institutions are externally audited annually - increased transparency in use of funds Water Service Providers are increasing performance with rising service levels and customer orientation In rural areas access to safe water increased through WSTF. Stakeholder participation entrenched at all levels Investment in the sector has increased (KSh 2 Billion in 2002 to KSh 32 Billion in 2010) Sector responding positively to regulation (Annual Impact Reports by WSRB and WRMA Performance Report) Reform Achievements

19. Increase in sector investment Support under German Development Cooperation has been tremendous (KfW and GIZ) KfW has supported development of water and sewerage infrastructure many urban towns (Nyeri, Malindi, Eldoret, Kericho, Kakamega, Busia GIZ provides great support to reform of the water sector in Kenya Nyeri Water Supply

20. Nakuru Water Works (ADB) Increase in sector investment Kakamega Intake Works (KfW)

21. Sector able to attract and retain quality manpower with diverse skills • Increased attention to informal settlements (pro-poor approaches) • Enhanced stakeholder participation in management of water resources • Reduced conflicts over water sharing • Increased water availability through involvement of WRUAs • Reduced duplication of roles and mandates • Sector responding to human rights to water Reform Achievements

22. Reform Challenges • Notable challenges include: • Inability to fully implement the Transfer Plan six years later • Transfer of Assets • De-linking of staff from the Ministry • Headquarters restructuring • Effective communication on reforms • Sustainability of most of the sector institutions established especially the Water Services Providers • Meeting public expectation within a short time • Corporate governance issues • Information/Data gaps • Political interference

23. Lessons learnt • Reforms have made the sector active and vibrant • Sector is harmonized with limited duplication of resources • Regulation of the sector improving performance and accountability • Socially responsive commercialisation improving sustainability while improving services to the poor • Separation of management of water resources from water services good for water resources management

24. Lessons learnt • Resistance to continued reforms rampant • Important to identify and support reform champions • Continuously communicate reform benefits and achievements • Important to have a well structured capacity development strategy for the sector • Political support

25. Sustain reform tempo through continuous reviews and public reporting Complete implementation of Transfer Plan Cluster unviable schemes Performance monitoring and reporting to be sustained Formalize services in informal settlements Align the sector legislation to the new Constitution (Access to water of good quality in adequate amounts in the Bill of Rights) WAY FORWARD

26. Thank you…