Naivasha Bulk Water and Wastewater Treatment PPP

Kenya
Transforming water treatment and supply
Sector
Water, Sewage and Sanitation
Total PIDG Commitment
EUR 1.5m
Related SDG Goals
Project Overview
SectorWater, Sewerage, and Sanitation
CountryKenya
Total Project Development CostEUR 6.45m
PIDG Commitment
  • Equity EUR 1.1m
  • Technical assistance <EUR 0.4m
Dates of PIDG involvement
  • 2025 – present
Challenge

Just 41 percent of Kenya’s population has access to basic sanitation services, and 68 percent to safe drinking water. Significant finance is required to address these unmet needs; however, studies suggest that the country’s WASH sector has a financing gap of approximately USD 7 bn per annum. In Nakuru County, a lack of access to appropriate water and wastewater treatment facilities has resulted in pollution incidents, water scarcity, and public health risks, particularly impacting the ecologically sensitive Lake Naivasha area.

Solution

As a  Privately Initiated Investment Proposal (PIIP) under Kenya’s Public Private Partnerships (PPP) Act 2021, the Naivasha Bulk Water and Wastewater Treatment PPP project will design, finance, upgrade, construct, and operate fit-for-purpose water supply and wastewater treatment infrastructure. The project will deliver 69,000m3 / day of clean drinking water and sanitation services, benefiting more than 270,000 people through enhanced quality of life and improved climate resilience. As well as serving households, the project will develop a new plant serving Naivasha’s Special Economic Zone (SEZ).

 

 

Impact

Market transformation

Delivered under a 30-year agreement to supply bulk water and wastewater treatment services to the Ministry of Water, Sanitation, and Irrigation, and the Naivasha Water, Sewerage and Sanitation Company (NAIVAWASCO), the project is among the first to pioneer the PPP model in Kenya, de-risking the sector to attract new private sector investment.

People

The project will deliver improved quality of access to drinking water for an estimated 270,000 people, supporting efforts to achieve UN SDG 6, universal access to clean water and sanitation.

Wider economy

Businesses connected to the project through an associated Special Economic Zone (SEZ) are expected to benefit from improved reliability and quality of water, resulting in increased productivity  and revenues.

 

Climate

Access to safe and reliable water is a key enabler of climate resilience. Nakuru County faces issues around water scarcity and health risks resulting from inadequate wastewater management capacity, challenges which the Naivasha Bulk Water and Wastewater Treatment PPP seeks to address.

Technical assistance

A returnable grant of up to EUR 400k has been approved by PIDG technical assistance to fund feasibility studies and ESIA scoping.

 

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