1. 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

2. 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

3. 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

4. Funding Growth

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

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

7. 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)

8. 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

9. 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

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