Kenya Evidence Forum - June 14, 2016 Using Evidence to Improve Policy and Program Designs Sustainably expanding sanitation services to the urban poor Demand.

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Presentation transcript:

Kenya Evidence Forum - June 14, 2016 Using Evidence to Improve Policy and Program Designs Sustainably expanding sanitation services to the urban poor Demand for Sanitation in Kenyan Urban Slums (DSKUS) IE

What is the most important sector to invest in to generate the biggest impact for the Kenyan economy? A.Roads B.Water supply C.Energy D.Education E.Health

Which stock would you invest in (in 2006)? A.Blue stock B.Red stock

Which stock would you invest in (in 2006)? APPLE BLACKBERRY

What are we building? It’s not what we do but how we do it that counts

Expanding services in urban informal settlements The origin Global DIME workshop held in Naivasha in 2012 The partners Nairobi City Water and Sewerage Company Athi Water Board The project 427 million USD investment to improve water supply in Kenya The problem Households responsible for ‘last mile’ connections, but willingness to pay is often less than cost

Research questions Who connects and at what price? Help optimize the targeting and amount of subsidies What are the impacts of providing sewerage connections to households? How does it affect rent, migration, health, general satisfaction?

Operational Question What should NCWSC set their base subsidy level at? At what price will people connect? Will those that connect actually pay back monthly fees?

What price will landlords connect at?

Landlord plans to connect to sewerage

…but willingness to pay varies a lot Originally discussed monthly fee KSh 1000

Who is going to pay and how often?

Overall loan balance for water is reducing Loan amount: 3670 KSh Current balance (average): 2623KSh

But…history of loan repayment for water shows many people paying off completely with others accumulating debt

Distribution of current loan balances Original loan: 3670 KSh

Repayment time (for those fully repaid)

Next steps Repayment model has been restructured Lower monthly fees (KSh 450), but also include an upfront deposit Tenant survey ongoing Randomly offer landlords “medium” and “high” subsidies to connect Measure the impact on connection rates and understand who is connecting Follow up survey (end 2017) to measure impacts of connection on rental rates, migration, health, etc.

The setting: Kayole Soweto, Nairobi