WATER SECTOR TRUST FUND TOPIC 3: PUBLIC FINANCE MANAGEMENT Donor Funds and Conditional Grants for Devolved Functions with Regards to Water Function Presentation by Mr. Ismail Shaiye Chief Executive Officer 15th December, 2017

The Water Fund An overview State Corporation / Financing Institution First established under the Water Act 2002 as a financing mechanism, (Water Services Trust Fund) Role enhanced under the Water Act, 2016 Mandate: Provision of conditional and unconditional grants to the Counties Financing development and management of water services in marginalized and underserved areas Focus Areas: Water Services, Sanitation, Water Resources, Research Other expanded roles: Disaster management, climate change adaptation & mitigation, incentive programmes: Can establish subsidiary funds Governed by Board of Trustees The Water Fund An overview

The Fund’s Investment Programmes Urban Investments Rural Investments Commercial Financing Water Resources and Climate Change Investments COUNTIES WSPs WRUAs UTILITIES / CBOs CFAs GOK DPs Focus on the implementing partners

Funding Growth

Key Development Partners European Union IFAD INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT 6/7/2019

INGREDIENTS FOR EFFECTIVE FINANCING TO WATER AND SANITATION – WORKING WITH COUNTIES Good Governance Transparency Accountability Proper systems and Processes

EFFECTIVE FINANCING – LESSONS LEARNT Robust County Engagement – collaboration in programme implementation (WSTF example, MOUs with Counties) Water County Executive (CEC) to work closely with Finance CEC Wajir example: Ksh 1 billion allocated to water; Incentives – Wajir Governor honoured as Water Ambassador at 2016 Kenya Water Week Effective water policies, Master Plans; service delivery framework especially for Rural. CIDPs, validated by community members; useful for progressive planning over time (considers population growth, prevents urban sprawl) Strengthening County water institutions (WSPs) (result, increased connections, reduced Non-Revenue-Water) Operations Maintenance – ensures sustainability of water & sanitation schemes (WSTF annual operations monitoring – 70% index) Pro-poor targeting: establish units focusing on the poor and underserved for equitable service delivery (46% Kenyans underserved)

CURRENT ONGOING PROGRAMMES FUNDED Funding (Ksh) Target Population Urban Water Services (GOK, KfW) 1.2 Billion Open to all Counties Urban Sanitation (BMGF) 750 million Result Based Financing (World Bank, KfW) - urban 1.1 Billion Rural JP6 Programme (GOK, Finland, Sweden) 2 Billion Kwale, Nandi, Tharaka Nithi, Migori, Narok, Laikipia Rural Danida / EU Share 900 million Isiolo, Lamu, Tana River, Marsabit, Garissa, Wajir Upper Tana Natural Resources Programme (GOK, IFAD) 700 million Tharaka Nithi, Embu, Murang’a, Kirinyaga, Meru, Nyeri Rural Danida Green Growth & Employment Creation & Drought Emergency - 1.475 million Isiolo, Lamu, Tana River, Marsabit, Garissa, Wajir, Turkana, Mandera Rural EU Climate Proofed Infrastructure Saudi Fund for Development (boreholes) 2. Billion 500 million Baringo, Kajiado, Kilifi, Samburu, Kitui, Taita Taveta, West Pokot, Mandera Wajir, Garissa, Mandera

WHY PARTNER WITH TRUST FUND? Harmonization of donor procedures Experience & wide Partner base Transparent & participatory criteria, selection, award & implementation process Systematic capacity building for sustainability Pro-poor Targeting WSTF does not implement but finances; therefore collaborates with others for implementation 6/7/2019

Launch of Rural Programme in six (6) Counties and Signing of Co-Funding MOUs with Governors THANK YOU