Kenya: $100 Million from IFC and for Banks that Finance Drinking Water

Sep 2019
Kenya, September, 24 2019 - The funds are intended to cover part of the investments of Kenyan commercial banks in drinking water and sanitation projects in underserved areas.

How can Kenyan commercial banks be encouraged to finance drinking water and sanitation projects? This is the question that drives the new initiative of the International Finance Corporation (IFC), the World Bank’s subsidiary responsible for private sector financing. In partnership with, a US non-profit development aid organisation, the agency recently made 10 billion shillings ($100 million) available to Kenyan commercial banks.

These funds are intended to guarantee part of the investments made by these financial institutions in drinking water and sanitation projects. The $100 million is provided equally by the IFC and According to the World Bank’s subsidiary, these funds will allow, “structured credit enhancements such as risk-sharing facilities for water and sanitation loan portfolios provided by local banks, thereby mitigating credit risks and allowing local banks to introduce or increase loans for water and sanitation assets”.

The new funds should enable local commercial banks to work more closely with local utilities to provide safe drinking water and sanitation services in remote areas. Such projects are underway in several counties in Kenya. One example is the Voi sub-county, where the local utility Coast Water Services Board (CWSB) is currently building a water pumping station, which will operate on a small power grid. The water will be transported to a large 500 m3 concrete tank, then to another tank still made of concrete, but with a capacity of 225 m3 this time. The water will supply the Mbololo, Kangemi, Mbulia, Ghazi, Ndii and Mlilo villages through a 10 km pipeline.

Source : Afrik21

Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More