KIFFWA

KIFFWA

KIFFWA (Kenya Innovative Finance Facility for Water) is a co-developer of water initiatives in Kenya. It provides early stage capital and finance expertise to support the creation of viable water investment opportunities and attract (private) providers of finance. KIFFWA is currently being set up as a local organization in Kenya by the Netherlands Water Partnership with funding of the Embassy of the Kingdom of the Netherlands in Nairobi.

WATER SITUATION

Kenya faces water security problems resulting in an array of social, environmental and economic issues. Water use and water demand for different purposes (drinking, agricultural, industrial etc.) is expected to rise significantly in the coming years. Addressing these problems requires huge investments. The National Water Plan 2030 indicates that over USD 2 billion annually is needed for the coming years. As public budget cannot cover these investments for water alone, other sources are needed. Kenya has been at the forefront of innovative financing of infrastructure, including blending various public and private sources. KIFFWA like to add to that notion.

INITIATIVES

The first initiative has already received KIFFWA support:
The Kenya Pooled Water Fund; an initiative that develops and finances bankable proposals for water utilities (WSPs). The concept draws in and combines donor guarantees and local capital markets (bonds issuance) to on-lend long term to utilities at affordable rates. KIFFWA supports the preparation of a business plan (Q4 2016) and the set-up of the fund if the business plan is approved (in the course of 2017).

ELIGIBLE WATER SECTOR

KIFFWA has no water subsector bias, so in principal the following is eligible:

  • Coastal zone development;
  • Drinking water;
  • Flood management;
  • Hydro;
  • Industry water;
  • Integrated Water Resource Management;
  • Irrigation;
  • Ports;
  • Sanitation and Hygiene.

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The programme through which KIFFWA is realized is funded by the Embassy of the Kingdom of the Netherlands in Nairobi for approximately EUR 10 million over the period 2016 – 2019. The Netherlands Water Partnership is appointed to implement the programme.

NWP