• While responding to questions from members, Wahome held that the PPP will see a drop in the funding of projects.
• With the model, the CS said, most projects are going to be completed hence addressing the water challenges in the country.
Image: FILE
Water Cabinet Secretary Alice Wahome has defended a proposal by the government to introduce public private partnerships (PPP) in the implementation of key projects and the provision of bulk water.
Wahome said with the new arrangement, the government seeks to attract funding of up to Sh500 billion from investors ready to develop various projects across the country.
Appearing Monday, the CS also sought to deny reports that the purchase of water is set to go up.
"Water will not be expensive through PPP as has been claimed, in fact, it is going to be affordable...we are going to account for every bit of it," said Wahome.
Agreements and costing, she noted, will be fully scrutinised to ensure investors adhere to the necessary legal provisions.
While responding to questions from members, Wahome held that the PPP will see a drop in the funding of projects arguing there has been a loophole where figures are inflated mainly with the government quota.
With the model, the CS said, most projects are going to be completed hence addressing the water challenges in the country.
She noted that currently, Kenya is classified as a water-scarce country.
Clause 9 of the Water (Amendment) Bill 2023, states that the contracting authority at the national government will either be the state department, water works agency or a state corporation which intends to have a project undertaken by a private investor.
At the counties, it will be the county government or a corporation.
Upon the completion of the project, the investor enters into a contract with the relevant Works agency which is the off-taker in the plan.
The agency will in turn sign an agreement with the service provider in a county.
"The investor will not do the project and go, they will be there to manage but of course our managers will also be there to oversee the process...they also have the authority to cut water supply if the bill is not paid," she explained.
The principal object of the Bill is to amend the Water Act, of 2016, for the purpose of operationalising public private partnerships in the water sector.
The Bill is sponsored by National Assembly majority leader Kimani Ichung’wah.
“The amendment is for purposes of aligning the Water Act to the Public Private Partnerships Act, No. 14 of 2021,” the Bill reads in part.
It proposes to amend the Water Act, 2016 (the Act) to allow Water Works Development Agencies (WWDAs) to provide water services by entering into bulk water purchasing agreements structured as PPPs.
The Bill also allows the National Water Storage Authority (NWSA) to enter into bulk water purchasing agreements.
The context for these amendments is that water and sanitation services are a devolved function with the national government responsible for ownership and management of water resources.
Counties, communities, and the private sector are responsible for service provision.
County water service providers enjoy exclusivity in their area of supply.
The new approach by the government, Wahome noted, will help ensure counties get a guarantee.
Wahome told the Committee that counties have for long faced hurdles in securing private investment in the water sector since the national government has not been willing to guarantee the obligations.
"Private investors have been reluctant in entering into long-term agreements with counties and county water providers," she added.