Role of the Water Sector Trust Fund in Kenya

The Water Act stipulates the role of the Water Sector Trust Fund in Kenya. The Water Act also establishes the Water Sector Trust Fund as a financing institution.

The Water Sector Trust Fund is a body corporate with perpetual succession and a common seal and shall have power–

• in its corporate name, to sue and to be sued, and
• in the exercise and performance of its powers and functions, to do and permit all such things as may lawfully be done or permitted by a body corporate in furtherance of its objects.

Role of the Water Sector Trust Fund

The role of the Water Sector Trust Fund in Kenya is to–

• provide conditional and unconditional grants to counties, in addition to the Equalisation Fund;
• assist in financing the development and management of water services in marginalised areas or any area which the Board of Trustees (see below) considers undeserved, including–
  • community level initiatives for the sustainable management of water resources;
  • development of water services in rural areas considered not to be commercially viable for provision of water services by licensees;
  • development of water services in the under-served poor urban areas; and
  • research activities around water resources management and services, sewerage and sanitation.

Board of Trustees of the Water Sector Trust Fund

A Board of Trustees, constituted from time to time and holding office under a trust deed issued by the Cabinet Secretary responsible for water matters, shall direct the exercise and performance of the duties and functions of the Water Sector Trust Fund.

The Board of Trustees shall consist of a chairperson and six other members recruited per the First Schedule of the Water Act.

Functions of the Board of Trustees

The powers and functions of the Board of Trustees of the Water Sector Trust Fund shall be to–

• (a) manage the resources of the Water Sector Trust Fund;
• (b) mobilise additional resources for the Water Sector Trust Fund;
• (c) formulate and implement principles, regulations and procedures in consultation with the national government and county governments for financing projects, including efficiency and effectiveness of funds;
• (d) implement measures to ensure the efficient and equitable sharing of the resources of the Water Sector Trust Fund, giving priority to resource allocation in–
  • (i) rural and urban locations with lower than average access to essential water services; and
  • (ii) rural areas which are vulnerable to the degradation or depletion of water resources;
• (e) monitor the implementation of projects;
• (f) maintain and make public available information on the projects financed and the impact of such projects;
• (g) receive grants for onward lending to water services providers, counties, and registered community schemes towards water services and water resources management projects for the underserved areas and urban poor;
• (h) establish and manage subsidiary funds as may be necessary for sustainable financing towards water services and water resource management; and
• (i) develop incentive programmes for managing water resources, including disaster management, climate change adaptation, and mitigation, in collaboration with relevant institutions.

Only water service providers, counties, and registered community schemes that can afford to repay the Water Sector Trust Funds advanced, and profits thereof used to finance water services and water resources management projects for underserved areas and urban poor, shall be subject to the provisions of subsection (g) above.

The Board of Trustees of the Water Sector Trust Fund shall, following public consultation, gazette the criteria for qualification for funding from the Water Sector Trust Fund, taking account of equity considerations, and may review the qualification criteria from time to time following public consultation.

For more information about the Water Sector Trust Fund, see the Water Act or visit their website.