2. WATER SECTOR ALIGNMENT, COORDINATION, CAPACITY BUILDING AND RESEARCH 2.1 ...

124 Pages·2016·8.22 MB·English

REPUBLIC OF KENYA

Annual Water Sector Review
2014/2015 –2015/16

Ministry of
Water and Irrigation

Nairobi
November 2016
2 MINISTRY OF WATER AND IRRIGATION

Published by

the Ministry of Water and Irrigation

PO Box 49720

00100 – Nairobi, Kenya

www.water.go.ke

This report was compiled by
the AWSR Taskforce in the
Ministry of Water and Irrigation.
Its members are:
Eng. Fidelis Kyengo
Mr Thomas Simani
Mr Nguma Kani
Mr Daniel Kimani
Mrs Elishiba Mutegi
Mr David Thiong’o
Mr Naftali Abuya
Mr David Bosuben
Mr Elly Yaluk
Ms Georgia Musau
Mrs Dorris Kirui-Kubasu
Eng. Patrick Onyango
ANNUAL WATER SECTOR REVIEW 2014/2015 - 2015/2016 3

TABLE OF CONTENTS

LIST OF FIGURES ............................................................................................................................................................. 4
LIST OF TABLES................................................................................................................................................................ 5
LIST OF ABBREVIATIONS .............................................................................................................................................. 6
FOREWORD ....................................................................................................................................................................... 7
ACKNOWLEDGEMENT .................................................................................................................................................. 9
REMARKS BY COUNTY GOVERNMENTS .............................................................................................................. 10
EXECUTIVE SUMMARY ............................................................................................................................................... 12
1. INTRODUCTION ................................................................................................................................................. 16
2. WATER SECTOR ALIGNMENT, COORDINATION, CAPACITY BUILDING AND RESEARCH ....... 21
2.1 Alignment ................................................................................................................................................. 21
2.2 Coordination ........................................................................................................................................... 26
2.3 Capacity building and research ....................................................................................................... 36
3. WATER SECTOR FINANCIAL OUT-TURN ................................................................................................... 40
3.1 Overview ................................................................................................................................................... 40
3.2 Sector funding in 2014/2015 –2015/16 ........................................................................................ 42
3.3 Pending bills ............................................................................................................................................ 52
3.4 Key challenges and recommendations ........................................................................................ 53
4. PERFORMANCE PROGRESS OF THE SUB-SECTORS .............................................................................. 54
4.1 Water Resources .................................................................................................................................... 54
4.2 Water Services......................................................................................................................................... 66
4.3 Land Reclamation .................................................................................................................................. 89
4.4 Water Storage and Flood Control ................................................................................................... 94
4.5 Irrigation and Drainage ...................................................................................................................... 100
5. CROSS-CUTTING ISSUES .............................................................................................................................. 108
6. CONCLUSION ................................................................................................................................................... 113
ANNEXES ...................................................................................................................................................................... 115
4 MINISTRY OF WATER AND IRRIGATION

LIST OF FIGURES

Figure 1.1: Institutional set-up of the water sector created by the Water Act 2002 .................................... 17
Figure 1.2: Institutional set-up of the water sector created by the Water Act 2016 .................................... 17
Figure 1.3: Structure of the MWI .................................................................................................................................. 18
Figure 2.1: Share of investments by CSOs in 2014/15 ........................................................................................... 30
Figure 3.1: Growth in original sector budget from 2006/07 to 2015/16 ......................................................... 40
Figure 3.2: Actual budget receipts from 2006/07 to 2015/16 ............................................................................. 41
Figure 3.3: Sources of sector funding at national level for 2015/16.................................................................. 42
Figure 3.4: Recurrent and development budgets at national level for 2015/16 ........................................... 43
Figure 3.5: Analysis of disbursement of DP funds at national level in 2015/16 ............................................ 44
Figure 3.6: Analysis of donor loans and grants at national level for 2015/16 ................................................ 44
Figure 3.7: Trends in loans and grants releases to the sector from 2010/11 to 2015/16 ............................ 45
Figure 3.8: Trend of donor disbursements to the sector ...................................................................................... 45
Figure 3.9: Sub-sector funding ..................................................................................................................................... 46
Figure 3.10: Total budget (revised) allocation by sub-sector from 2012/13 to 2015/16 ............................... 47
Figure 3.11: Development budget (revised) by sub-sector from 2012/13 to 2015/16 .................................. 47
Figure 3.12: Sources of actual funding for WSIs in 2015/16 ................................................................................... 49
Figure 3.13: Sources of actual funding for WSIs from national government in 2015/2016 ......................... 49
Figure 3.14: Six-year trend of funding to sector institutions ................................................................................. 50
Figure 3.15: Seven-year trend of internally generated funds (IGF) vs GoK funding ....................................... 51
Figure 3.16: Funding trend to the pro-poor basket (WSTF) ................................................................................... 52
Figure 4.1: Water permits ............................................................................................................................................... 59
Figure 4.2: Effluent discharge permits ....................................................................................................................... 60
Figure 4.3: Marsabit County aquifers .......................................................................................................................... 62
Figure 4.4: Turkana County aquifers ........................................................................................................................... 62
Figure 4.5: Underserved population in urban areas .............................................................................................. 68
Figure 4.6: Investment per capita by WSBs in urban areas in 2014/15 ............................................................ 68
Figure 4.7: Population with access to safe water nationally................................................................................ 69
Figure 4.8a: Urban coverage according to WSBs additional population served ............................................. 70
Figure 4.8b: Trend in urban water and sewerage coverage according to WASREB ....................................... 71
Figure 4.9: Rural population with access to safe water ......................................................................................... 71
Figure 4.10: Population with access to improved sanitation nationally ............................................................ 72
Figure 4.11: Urban population with access to improved sanitation ................................................................... 72
Figure 4.12: Rural population with access to improved sanitation ..................................................................... 73
Figure 4.13: National sewerage coverage ................................................................................................................... 74
Figure 4.14a: Urban sewerage coverage trends according to WASREB (actual connections) ....................... 75
Figure 4.14b: Urban sewerage trend according to additional population covered in WSBs (design
capacity sewerage systems) ..................................................................................................................... 75
Figure 4.15: Additional people covered through WSTF since 2008 in urban areas ........................................ 76
Figure 4.16: Investment in urban water services by WSB ....................................................................................... 81
Figure 4.17: O&M coverage and NRW level in urban utilities ................................................................................ 86
Figure 4.18: Trend of average tariff compared with tariff necessary for sustainability ................................. 86
Figure 4.19: Kenya land degradation map .................................................................................................................. 89
ANNUAL WATER SECTOR REVIEW 2014/2015 - 2015/2016 5

LIST OF TABLES
Table 2.1: Key PC targets for the MWI 2015/16 ...................................................................................................... 24
Table 2.2: Sector coordination platforms................................................................................................................. 27
Table 2.3: Overview of beneficiaries of water supply and sanitation infrastructure projects ................. 30
Table 2.4: 2015 sector undertakings.......................................................................................................................... 34
Table 2.5: Training programmes at KEWI and number of students graduating .......................................... 37
Table 2.6: Research projects of KEWI in FY 2014/15–2015/16 ........................................................................... 38
Table 2.7: Outreach activities of KEWI 2014/15 and 2015/16 ........................................................................... 39
Table 3.1: Required investment as per SIP ............................................................................................................... 41
Table 3.2: Projects and programmes managed by the Ministry of Water and Irrigation for the financial
years 2014/15–2015/16 ............................................................................................................................. 46
Table 3.3: Actual funding of WSBs in 2014/15–2015/16 ..................................................................................... 48
Table 3.4: Summary of actual water sector institution funding in 2014/15–2015/16 ................................ 48
Table 3.5: Internally generated funds, by sector institution ............................................................................. 50
Table 3.6: Summary of pending bills (KSh millions) ............................................................................................. 52
Table 4.1: Summary of activities implemented by WRMA for the years 2014/2015 and 2015/16 ......... 56
Table 4.2 Revenues generated in FY 2014/15 ....................................................................................................... 57
Table 4.3: Summary of targets and achievements by category ........................................................................ 57
Table 4.4: Summary of the activities implemented by the regional offices .................................................. 58
Table 4.5: Water resources monitoring instruments ............................................................................................ 61
Table 4.6: List of upgraded stations ........................................................................................................................... 61
Table 4.7: Investment by WSBs in urban and rural areas in water services .................................................. 69
Table 4.8: Additional people covered by the WSTF since 2008 ........................................................................ 76
Table 4.9: County development budgets for FY 2013/14 and water-related development budgets
(KSh millions)................................................................................................................................................. 78
Table 4.10: Investments by counties in 2015/16 ...................................................................................................... 80
Table 4.11: Water services in counties in FY 2015/16 ............................................................................................. 82
Table 4.12: Counties and urban areas with sewerage services in FY 2015/16 ................................................ 83
Table 4.13: Challenges faced by counties in water services provision and way forward ............................ 87
Table 4.14: Land reclamation achievements at national level ............................................................................ 90
Table 4.15: Land reclamation achievements at county level ............................................................................... 91
Table 4.16: CETRAD achievements .............................................................................................................................. 92
Table 4.17: Summary of progress on reclaimed land from 2013/14 to 2015/16 ............................................ 92
Table 4.18: Progress achieved in multi-purpose dam development ................................................................. 94
Table 4.19: NWCPC activities in flood control in 2014/15 ..................................................................................... 96
Table 4.20: RDA water storage activities in 2015/16 ............................................................................................... 97
Table 4.21: Flood control and mitigation activities carried by NWCPC ............................................................ 98
Table 4.22: Achievements made by NWCPC in flood control and mitigation in 2015/16........................... 98
Table 4.23: Overall sub-sector performance ........................................................................................................... 102
Table 4.24: New irrigation and drainage projects in 2014/15 ............................................................................ 102
Table 4.25: New irrigation and drainage projects in 2015/16 ............................................................................ 103
Table 4.26: Capacity building in irrigation ............................................................................................................... 104
Table 4.27: Actual investments done in the sub-sector ....................................................................................... 107
Table 4.28: Funding of irrigation in FY 2014/15 and FY 2015/16 ...................................................................... 107
Table 5.1: PC targets for mainstreaming cross-cutting areas .......................................................................... 108
6 MINISTRY OF WATER AND IRRIGATION

LIST OF ABBREVIATIONS

ASAL Arid and semi-arid lands
AWSR Annual Water Sector Review
AWR Applied Water Research
BADEA Arab Bank for Economic Development in Africa
BMGF Bill & Melinda Gates Foundation
CBO Community-based organisation
CETRAD Centre for Training and Integrated Research in ASAL Development
CoK 2010 Constitution of Kenya 2010
CSO Civil society organisation
Danida Danish International Development Agency
DP Development partner
EDCP Effluent Discharge Control Plan
EPC Engineering procurement and construction
EU The European Union
FY Financial year
GoK Government of Kenya
ha Hectare
IFAD International Fund for Agricultural Development
IFMIS Integrated Financial Management Information System
IWRM Integrated water resources management
IWUA Irrigation water users’ associations
JICA Japan International Cooperation Agency
KEWASNET Kenya Water and Sanitation Civil Society Network
KEWI Kenya Water Institute
KfW German Development Bank
km Kilometres
KSh Kenyan Shillings
LADA Land degradation assessment
LR Land reclamation
m3 Cubic metres
M&E Monitoring and evaluation
MCM Million cubic metres
NRW Non-revenue water
O&M Operations and management
RDA Regional development authority
SCMP Sub-catchment management plan
SDG Sustainable Development Goal
SIP Sector investment plan
WAG Water action group
WASH Water, sanitation and hygiene
WRBC Basin water resources committee
WRM Water resources management
WRUA Water resources users association
WSB Water service board
WSI Water sector institution
WSP Water services provider
WSS Water and sewerage services
WSTWG Water and sanitation thematic working group
ANNUAL WATER SECTOR REVIEW 2014/2015 - 2015/2016 7

FOREWORD

The Ministry of Water and Irrigation (MWI) has been
implementing water sector reforms since 2003, based on the
legal framework set out by the Water Act 2002 and guided by
the Sessional Paper No. 1 of 1999, which provided the policy
direction. The core areas of the MWI are water resources
management (water conservation and catchment areas
protection), water services provision (water supply, sewerage
services, on-site sanitation and faecal sludge management),
support to land reclamation in the arid and semi-arid lands
(ASAL), water storage, flood mitigation and irrigation
development. The water sector started drafting a new water
bill in 2011 to align the sector to the Constitution of Kenya
2010 (CoK 2010). The Water Bill (National Assembly Bill No.7 of 2014) was approved by the
National Assembly in August 2016 after the final mediation process with the Senate. It was
given assent by the President on 13th September 2016 and was gazetted as the Water Act
2016.

The reforms under the Water Act 2002, which started in 2003, have brought great gains in the
water sector. Among these gains are: the separation of policy-making from regulation and
water services provision from water resources management; decentralisation of key functions
from the national level to the regional level; establishment of autonomous sector institutions;
creation of private-sector-like managed public utilities; and a stronger pro-poor focus. The
reforms enabled the water sector to adopt the Human Right to Water as a guiding principle in
2006. With the alignment of the water sector to CoK 2010, the reforms made in the sector shall
be safeguarded. The Ministry has established structures and platforms for increased
stakeholder and consumer participation in decision-making and implementation processes, in
an effort to combat sector challenges.

The sector is still facing a number of significant challenges. These include rapid population
growth and the high rate of urbanisation and industrialisation, which are creating increasing
demand for water services in urban areas and pose a big threat to water resources
management. Other challenges relate to inadequate sector data for rural areas, the poor
performance of many utilities, high levels of non-revenue water (NRW) in many utilities (above
40%), poor governance practices, non-viable utilities, rampant informal service provision,
inadequate enforcement of water resources regulations and a lack of clear mandates for actors
in the storage sub-sector. In addition, the inadequate performance of the storage sub-sector
has led to low national storage capacity and many incomplete water storage dams. There are
also problems of unclear ownership of multi-purpose dams, which hinders their sustainability,
insufficient sector coordination with the counties and sector planning that is not based on
priorities and sector investment plans (SIPs). The sector is still experiencing low self-financing
capacity and is dependent on government and development partner funds for investments.
The improvement of service coverage in the sector is impeded by under-investment in water
services. There is a growing annual investment gap which needs to be bridged in order to
achieve universal access by 2030.
8 MINISTRY OF WATER AND IRRIGATION

Further sector reforms under the Water Act 2016 will focus on sustaining the gains of the
reforms, improving water storage, strengthening regulation, creating viable utilities and
improving sector planning. Sector coordination with the counties under devolved water
services provision will be enhanced. Asset development and investment planning, which is
currently done by the eight water service boards (WSBs), will undergo major reforms. The
Ministry is putting measures in place to improve the sector performance based on the
opportunities brought by the Water Act 2016. The sector is striving to ring fence all its revenues
to contribute to the sustainability of the sector. All levies and fees charged on the use of public
assets will be abolished to enhance sector financing and sustainability.

With regard to water resources management, enforcement of water resource regulations
should be strengthened to drastically reduce illegal abstractions, pollution, destruction of
water catchment areas and emerging climate change threats. Data management in water
resources will be improved to avail high-quality, reliable data for future planning and equitable
allocation of water resources.

The aim of the sector is to gradually achieve universal access by 2030. This can only be achieved
through greater investment in water services. The Water Services Regulatory Board shall be
empowered to guide the sector to achieve this. The Ministry is therefore focusing on resource
mobilisation, innovative financing mechanisms and investment planning. The Water Sector
Trust Fund (WSTF) has continued to be strengthened as the sector pro-poor financing
institution. This is to enhance the financing of the development and management of water
services in marginalised and underserved areas. The pro-poor initiatives by the WSTF will
ensure the progressive realisation of the human right to safe drinking water and sanitation for
all, in a non-discriminatory manner. The WSTF has reached over 2,500,000 people with safe
water supply and over 350,000 people with improved sanitation since 2008.

The sector is therefore striving to introduce integrated investment planning. The self-financing
potential of the sector will be further developed. This should go hand-in-hand with an
improvement in the quality of services provided to consumers to enhance their willingness to
pay for the provided services. The Ministry, counties, sector institutions, development partners
and civil society organisations should continue to work together to ensure that sector planning,
financing and implementation are done in line with the sector objectives and according to set
timelines. To this effect, the Ministry continues to provide the necessary national policy
direction, legal framework and coordination platforms that will guide the sector towards the
achievement of Vision 2030 water sector objectives.

Hon. Eugene L. Wamalwa
Cabinet Secretary
Ministry of Water and Irrigation