Financing initiative targets households, businesses and institutions investing in water and sanitation solutions
Access to finance is emerging as an important enabler of Kenya’s efforts to expand water, sanitation and hygiene (WASH) services, with the Co-operative Bank of Kenya increasing its focus on financing investments across the sector.
Through its CO-OP-A-MAJI financing facility, the bank is providing credit to individuals, micro, small and medium-sized enterprises (MSMEs) and institutions seeking to invest in water and sanitation solutions. The facility covers a range of needs, from water storage and connections to boreholes, solar-powered pumping systems and wastewater treatment.
Bridging the WASH financing gap
Financing remains a major consideration in expanding access to reliable water and sanitation services. For households, businesses and institutions, the upfront cost of installing water infrastructure can be a significant barrier.
The CO-OP-A-MAJI facility is designed to help address this challenge by providing financing for infrastructure and equipment such as water tanks, water purification systems, solar water pumps, solar heating systems, boreholes, bio-digesters and wastewater treatment systems.
The facility also targets enterprises operating within the WASH value chain, including water bottlers and distillers, licensed borehole drilling companies, water service providers, manufacturers and distributors of water-harvesting equipment, and contractors providing water and sanitation services.
Supporting water infrastructure investment
The financing comes as Kenya seeks to expand water infrastructure while improving the resilience and efficiency of existing systems.
For households and businesses facing unreliable water supplies, investments in storage, pumping and water connections can provide greater security. For WASH enterprises, access to working capital and equipment financing can help expand their capacity to serve growing markets.
The bank’s financing options include up to 100 per cent financing for some eligible water investments, while specific products have different financing limits and repayment terms. For example, financing for water bowsers and exhausters can cover up to 80 per cent of the investment, with repayment periods of up to 72 months.
Financing the transition to cleaner water solutions
The facility also places attention on technologies that can reduce operating costs and improve sustainability.
Solar water pumps and solar water-heating systems, for instance, can reduce dependence on conventional energy sources while supporting reliable water access. Financing these technologies can therefore contribute to the wider transition towards more energy-efficient water systems.
The bank also finances wastewater treatment and bio-digester solutions, areas that are becoming increasingly important as urbanisation increases pressure on sanitation infrastructure.
Opportunity for WASH enterprises
Beyond financing infrastructure for end users, access to credit can support businesses operating throughout the WASH supply chain.
Kenya’s water sector relies on a broad network of contractors, equipment suppliers, drilling companies, water-service providers and manufacturers. Expanding access to finance for these enterprises can help them acquire equipment, manage working capital and respond to demand for water and sanitation services.
Applicants are required to meet various documentation and regulatory requirements depending on the facility. These may include business licences, registration documents, relevant regulatory approvals and project quotations.
Bringing finance closer to water security
The emergence of specialised WASH financing products reflects a growing recognition that achieving water security requires investment from both the public and private sectors.
Government programmes and development partners remain important to expanding basic services, but commercial finance can also play a role in enabling households, institutions and businesses to invest in infrastructure.
For Kenya’s water sector, the availability of dedicated financing could help accelerate investment in water storage, supply, sanitation, renewable-energy systems and wastewater management.
As demand for reliable water and sanitation services continues to grow, stronger links between the financial sector and WASH industry could become an increasingly important part of closing Kenya’s infrastructure and service-delivery gaps.
