Willingness to Pay Study Report

Project Background

In response to limited WASH sector financing in Kenya, SANA has proposed the establishment of an Innovative Local Financing Model to bridge the huge financing gap largely responsible for poor water and sanitation status in Kenya and indeed the wider Sub Sahara Africa. Adopting a PPP-based financing model, it is an innovative funding train with a huge scaling potential  for  sustainable improvement in Secondary Schools WASH with parallel benefit to improved  water provision to the school’s immediate surrounding population. The Model targets contribution from the County Governments, Banking Sector, Civil Society, Secondary Learning Institutions and Development Partners.

A total direct investment costs of Kshs 5million will be required per school of which an ‘average’ of Kshs. 2.75 mln will be invested in Water, (110 KSh=1€),  Kshs 2.00 mln in toilets and biogas installation and Kshs 0.25 mln for the Reflo waste water treatment system.  Apart from the direct investment cost of  Kshs  5.0 mln,  approximately Kshs 1mln ( i.e. 20%  of total direct investment cost)  will be required for overall project management and the loan costs of Kshs 0.84 mln to cater for interest and admin costs  hence a total investment cost of Kshs  6,84 mln per school. It will adopt BOT financing to ensure sustained Service Provision to up to 41,000 people and effective repayment as it builds local operation and maintenance capacity.

Purpose Of the Study

The basic assumption is that there is demand for improved water and proper sanitation and that the target Secondary schools would not only be willing to participate in the project by accessing Credit to finance the capital cost but also have the ability to service the credit. To establish the project potential, the Willingness to Pay Study has been conduct with following objectives:

To understand schools water demand and supply in the project area.
To establish the existing school sanitation facilities in the project area
To establish schools willingness to participate in the water and sanitation project
To understand the communities’ water demand and supply
To establish the communities ‘willingness to purchase water from the schools.

  Expected  Input From VIA Community Members

The Via community members are requested to review the draft report with a view to making suggestions on any improvements on its quality.  The inputs would inform production of Final Draft before its formally published