NAIROBI, Kenya- In a major step towards improving access to clean water and sanitation in Kenya, Co-operative Bank has signed a Sh500 million financing agreement with key players in the water sector, marking a promising boost for medium-sized infrastructure projects.
The deal, which includes Aqua for All, Water.org, and the Water and Sanitation Services Provider Association (WASPA), aims to support up to 15 projects in underserved urban, peri-urban, and rural communities, impacting an estimated 50,000 Kenyans.
Under this innovative partnership, Co-operative Bank will disburse Sh500 million in loan facilities to fund viable water supply and sanitation projects.
This financing model includes an attractive results-based incentive—organizations completing their projects successfully will receive loan rebates and enjoy a six-month moratorium on principal repayment during the construction phase.
This delay in loan repayment provides the project teams with some breathing room to get established before servicing the debt.
The partnership goes beyond financial support, however. Co-operative Bank has pledged comprehensive technical assistance to ensure the success and sustainability of these projects.
This includes training and capacity-building efforts for implementers, equipping them with the skills to manage projects effectively and develop bankable proposals.
Water.org’s Africa Regional Director, Francis Musinguzi, highlighted the role of technical assistance funding, which will support at least 15 Water Service Providers (WSPs) in creating project proposals tailored to meet Co-operative Bank’s commercial loan criteria.
To achieve this, the program will enlist qualified consultants who will work directly with these WSPs, providing crucial guidance on developing impactful projects with sound financial planning and sustainability measures.
In addition to proposal development, the initiative includes hands-on support in assessing project viability, validating finances, and monitoring project impact.
This process will ensure that projects meet both the operational standards of WSPs and the financial benchmarks of Co-operative Bank, ultimately aiming to expand clean water access to a wider population.
Lydia Rono, Co-operative Bank’s Director for Corporate and Institutional Banking, noted that the project aligns with the bank’s commitment to improving lives by enabling access to clean water and sanitation.
“Our shared vision among all partners, who bring essential expertise in finance, technical skills, and infrastructure support, will drive a significant improvement in the lives and livelihoods of communities across Kenya,” Rono said. The collaboration reflects a powerful commitment to sustainable development in Kenya, empowering communities to access life-changing WASH services while minimizing financial barriers.
