Commercial finance initiatives by the Netherlands and new partnerships to strengthen Kenya's Water and Sanitation Sector - Kenya
Commercial finance initiatives by the Netherlands and new partnerships to strengthen Kenya's Water and Sanitation Sector
On 18th May 2024, the Embassy of the Kingdom of the Netherlands, together with a delegation from the Inclusive Green Growth department of the NL Ministry of Foreign Affairs, embarked on a series of engagements aimed at advancing water and sanitation (WASH) initiatives in Kenya. This collaborative effort was bolstered by the involvement of key partners, including Aqua for All, OikoCredit, and Sidian Bank, all of whom share a commitment to fostering sustainable and scalable solutions in the sector through commercial and innovative finance.
The day commenced with meetings at the National Bank of Kenya (NBK), where the CEO and staff shared their experiences and lessons learned from their ongoing partnership with Aqua for All. These discussions centered around the successful development of the MajiKonnect program, a financing initiative designed to support MSMEs, corporates, and Water Service Providers (WSPs) in the WASH sector. NBK highlighted the importance of building the right ecosystem for sustainable and scalable lending solutions, which is crucial for driving long-term impact in the sector.
Following the meetings, the delegation visited the Gichungu Water Project in Kiambu, a rural piped water system that has significantly improved its efficiency through an energy transition funded by commercial finance. This project is a prime example of how targeted investments, supported by a challenge fund in partnership with Sidian Bank, can drive tangible improvements in water access and sustainability.
The day also included an insightful meeting with MobiWater, a company that has grown from a startup into an established enterprise. Initially funded by Aqua for All, MobiWater is now leveraging the MajiKonnect financing program by NBK for its scale-up phase, demonstrating the potential for innovative financing solutions to propel growth and sustainability in the WASH sector.
Culminating the day's activities, the delegation participated in the launch of a new three-year EUR 7.4 million WASH Loan Facility, a collaborative effort between the Netherlands, OikoCredit, Aqua for All, and Sidian Bank. This facility aims to provide loans and commercial finance for WASH projects, with a strong emphasis on climate resilience and gender inclusivity. The WASH Loan Facility is set to disburse 480 loans, reaching 3 million people across Kenya. Notably, the program is designed to allocate 40% of loans to women-led businesses and 60% to WASH SMEs and WSPs, aligning with the Sustainable Development Goals (SDGs) 5, 6, and 13—Gender Equality, Clean Water and Sanitation, and Climate Action, respectively.
Through these combined efforts, the Embassy of the Kingdom of the Netherlands and its partners are making significant strides in transforming Kenya's WASH sector, fostering a sustainable, inclusive, and resilient future for all.