In partnership with Family Bank, Sidian Bank and private sector service providers in Kenya, Aqua for All is proud to announce the launch of the Challenge Fund, a pioneering blended finance structure to accelerate access to clean and reliable water supply in peri-urban and rural areas of Kenya. The Challenge Fund addresses the financing gap for small-scale water providers (SSWPs) in Kenya through an innovative revenue-based financing model.
The Challenge Fund expects to support 150 SSWPs and raise KES 330 million (€2.7 million) for micro- and small water infrastructure investment projects over the next two years. As a result, 200,000 people across Kenya will gain (improved) access to water, and two commercial banks will build their capacity to develop cash-flow financing products.
Kenya has limited access to clean water supply. A significant portion of the population residing in peri-urban and rural areas do not have reliable water services. Small-scale water providers play a crucial role in these underserved areas. However, they often struggle with capital constraints that hinder their ability to expand and improve water services.
The Challenge Fund is a viable financing opportunity to bridge this gap and work towards achieving SDG6 by 2030. Through a blended finance structure and a tailor-made digital platform, ‘FundMyWater’, SSWPs will receive technical assistance to prepare commercial financing. In addition, Aqua for All will provide grants on demonstrated water service improvement and expansion. The revenue-based loan financing solution allows SSWPs to repay loans based on the revenue generated from their water services.
The Challenge Fund launch event took place 7 June 2023 at the Mövenpick Hotel. Distinguished guests included the managing directors of Family Bank, and Sidian Bank, representatives of Aqua for All, and various small-scale service providers and stakeholders.
The launch event showcased the FundMyWater platform, developed by technology partner Smart People Africa (SPA), which connects lenders with a pool of SSWPs and streamlines the loan application process. This platform will revolutionise water infrastructure investments, making them fast, collaborative, secure, and economically viable for all stakeholders involved.
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