This note looks at a series of interventions undertaken by the Government of Kenya, with support from the World Bank and other development partners, to improve access to commercial finance in the water and sanitation sector. It describes recent sector reforms and innovative financing initiatives and draws lessons from interventions supporting utility and community water service providers in accessing finance for infrastructure investment.

Investing in Water and Growth: Recent Developments and Perspectives addresses this conundrum in a cohesive and practical way. It is a one-stop shop for understanding why the financing of water-related expenditures matters, what is at stake, and the options available to ensure water-related investment needs are properly financed in ways that generate benefits for communities and contribute to sustainable growth. The book combines the perspectives of policymakers, economists and financiers in a unique, multidimensional and multidisciplinary approach. The book is structured into four distinct parts that target a specific set of questions and content development. Each section of the book has a multidisciplinary approach that provides a robust overview of key issues. The book combines different types of knowledge – from theory to practice, providing a full view of the topics discussed. - Includes numerous examples and real-world case studies - Discusses the concepts of planning, the planning process, integrated planning and public involvement - Synthesizes key evidence and arguments for investing in water security and sustainable growth

Investments in water and sanitation are a prerequisite to deliver on the Sustainable Development Goals (SDGs), in particular on SDG 6 ensuring availability and sustainable management of water and sanitation for all. Blended finance can play an important role in strategically investing development finance to mobilise additional commercial finance needed to fill the current investment gaps. Thus far, however, blended finance has not reached scale in the water and sanitation sector. A greater evidence base is needed to better understand the current applications as well as the potential of blended models in the water and sanitation sector. This publication takes a commercial investment perspective and provides insights into three subsectors: (1) water and sanitation utilities, (2) small-scale off-grid sanitation and (3) multi-purpose water infrastructure and landscape-based approaches. The publication draws out recommendations for policy makers and practitioners to apply and scale innovative blended finance approaches where most appropriate.

The investments needed to deliver sustainable water and sanitation services, including the funds that are needed to operate and maintain the infrastructure, expand their coverage and upgrade service delivery to meet current social and environmental expectations, are huge. Yet, most systems are underfunded with dire consequences for water and sanitation users, especially the poorest. Providing sustainable drinking water supply and sanitation services requires sound financial basis and strategic financial planning to ensure that existing and future financial resources are commensurate with investment needs as well as the costs of operating and maintaining services. Some of the key messages of this report are: WSS generate substantial benefits for the economy Investment needs to generate these benefits are large in both OECD and developing countries Tariffs are a preferred funding source, but public budgets and ODA will have a role to play, too Markets-based repayable finance is needed to cover high up-front capital investment costs Strategic financial planning and other OECD tools can help Governments move forward

The investments needed to deliver sustainable water and sanitation services are huge, yet most systems are underfunded. This book provides practical tools for investment and financial planning related to water.

The architecture of the water supply and sanitation subsectors in Kenya has undergone significant change in the last decade, in response to a slow deterioration of urban services through the 1980s and '90s. Initiated with a new water act in 2002, significant policy revision and restructuring of institutional roles is still ongoing and will need to be aligned with the new Constitution of Kenya 2010. Most of the reform emphasis has been in the water supply subsectors, especially urban, but sanitation is now regaining emphasis with a new policy published in 2007 and a strategy and investment plan in development. These reforms of the enabling environment are beginning to yield impacts in the coverage and quality of services. Kenya's challenge is to finalize the reform of enabling aspects such as strategies and investment plans, further clarifying roles and responsibilities, at the same time as significantly scaling up resources and systems for implementing the development of new services on the ground. Finally, in terms of checks and balances, while the monitoring and evaluation architecture is elaborate, greater use of the findings captured by information systems and reports is needed to drive performance improvements. The African Ministers Council on Water (AMCOW) Second Country Status Overview (CSO2) has been produced in collaboration with the Government of Kenya and other stakeholders.