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    The KSh 12 Billion Drain in Kenya's Water Sector

    Fred
    By Fred Obura
    - July 11, 2025
    - July 11, 2025
    InfrastructureKenya Business newsPublic Policy
    The KSh 12 Billion Drain in Kenya's Water Sector

    Non-Revenue Water (NRW), the difference between the volume of water a utility pumps into its system and the volume of water that is billed to customers, continues to be a major hurdle for the financial health and service delivery capabilities of Kenya’s water sector.

    • •With total billings reaching Ksh28.86 billion, the current NRW level stands at a concerning 44%, Kenya Water Services Regulatory Board in its latest Impact Report indicates.
    • •This translates to an estimated Ksh 12.37 billion worth of water lost during the 2022/23 reporting period, even after accounting for an acceptable loss threshold of 20%.
    • •These substantial losses are a significant drain on sector resources, diverting funds that could otherwise be invested in critical infrastructure, service expansion, and vital quality improvements.

    “Addressing this issue is essential for achieving water security, improving customer outcomes, and supporting the country’s broader vision of economic growth and higher living standards,” notes Kenya Water Services Regulatory Board.

    The report shows the average coverage was 70% for piped systems in the regulated utilities, which is an improvement of 5 percentage points from 2022/23 where coverage was 65%. 

    There was additional 3,266,760 people served compared to a 2,676,822 increase in number of people within the service area of service providers (WSPs).  There was also a growth of active water connections from the previous 1.81 million to 1.85 million representing a 2% growth. 

    According to the report, revenue collection efficiency improved from 93% to 95%, enhancing the financial stability of WSPs.

    While overall sanitation coverage remained high at 92%, sewered sanitation coverage declined slightly from 16% to 15%. Despite a 7% increase in the number of people served with sewerage services (equivalent to 319,299 people), it fell short compared to the 2.67 million increase in total population within service areas.

    The average number of people per sewer connection rose from 11 to 12.

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