Kenya’s water sector is facing mounting financial and operational challenges after the country’s Non-Revenue Water (NRW) level climbed to 48%, meaning almost one out of every two litres of treated water fails to generate revenue before reaching consumers. The losses, estimated at KSh 13.7 billion (approximately US$106 million) annually, continue to undermine efforts to improve water access and strengthen the financial sustainability of utilities.
The findings, presented in the WASREB Impact 18 Report (2024/25) and highlighted during the 2026 Non-Revenue Water Management Conference in Naivasha, show that Kenya produces about 504 million cubic metres of treated water each year, yet approximately 242 million cubic metres are lost through leaking pipelines, illegal connections, faulty meters, billing inaccuracies and other operational inefficiencies.
The current NRW level is significantly above the internationally accepted benchmark of about 20%, raising concerns over the country’s ability to meet growing urban water demand without investing heavily in new water sources. Sector experts note that reducing water losses would provide one of the quickest and most cost-effective ways to increase available water supplies while improving the financial performance of water service providers.
Although the latest sector report indicates improvements in the financial health of many water utilities—with operational cost coverage rising from 98% to 103%—the increase in NRW continues to erode these gains. Persistent water losses limit utilities’ ability to invest in infrastructure upgrades, network expansion and service improvements needed to meet the country’s growing demand.
According to sector stakeholders, the main drivers of NRW include ageing distribution networks, delayed infrastructure rehabilitation, electricity disruptions affecting pumping operations, inadequate funding, water theft and outdated metering systems. Addressing these issues will require stronger governance, improved asset management and greater adoption of technologies such as smart metering, digital network monitoring and advanced leak detection systems.
Speakers at the Naivasha conference stressed that Kenya’s challenge is no longer identifying the causes of water losses but implementing proven solutions consistently across utilities. They noted that several water service providers have already demonstrated that significant reductions in NRW are achievable through dedicated loss reduction programmes, better data management and sustained investment in maintenance and staff capacity.
As Kenya continues to pursue universal access to safe water and sanitation, reducing non-revenue water remains one of the sector’s highest priorities. Recovering even a portion of the water currently lost each year could improve service reliability for millions of people, strengthen utility revenues and reduce the need for costly investments in new water production infrastructure.