Business development services for community-managed small water enterprises : from post-construction support to business development services in Kenya

The rural water supply sector in Kenya presents significant user investment. Reform of this sector is expected to increase the autonomy of rural water service providers. The role played by water service providers engaged in developing, managing and operating schemes will be separated from the regulatory role of the Water Services Regulatory Board, and of the oversight functions exercised by seven autonomous regional water services boards. Rural communities in Kenya often mobilize substantial contributions toward the investment costs of rural water supply schemes. Technical assistance is often provided by NGOs, the water service boards’ district water offices, and in a few cases, the private sector. It is estimated that community projects account for around 3,000 water supply schemes in Kenya. These often are operated as small enterprises and it is clearly the intention of the reform that this should become the norm : a sector served by small water enterprises with sufficient management skill to function autonomously within the regulatory framework.
To ensure their long-term sustainability and health, these small enterprises require business development services (BDS) covering technical, financial and social skills. This support has to be sustainable to assure these enterprises of access to quality, affordable, professional services throughout the lifetime of their water projects. This paper examines the required business development services for rural water supply projects and the institutional options for their delivery. It is based on an analysis of the current situation and is informed by stakeholder consultation, including a national workshop of small water enterprise managers and operators.