Water  Services  Regula0on  and  Water  Security  

Oxford  Interna0onal  Water  Security  Conference  “Water  Security,  Risk  and  Society”    

18  April  2012  Eng.  Robert  Gakubia,  CEO  Water  Services  Regulatory  

Board,  Kenya  

Framing  Water  Services  Regula0on    &  Water  Security  (1)  

•  Water  Security  at  what  level?  Interna0onal,  na#onal,  sub-­‐na#onal  etc.  

 •  Water  resources  regula0on  vs.  water  services  regula#on    à  enhancing  water  security  by  ensuring  sustainable  access  to  services  with  same  minimum  standard  for  all  

 •  Urban  vs.  rural  water  services  (different  technology  &  mgmt.);  implica0ons  for  regula0on    

Supply/Demand  •   Infrastructure  (inadequate/

old)  •   Water  resource  availability  (climate  variability/change)  

•   User  compe##on    •   Popula#on  growth  

•   Increased  per  capita  demand  •   Water  quality  standards  

•   High  NRW  

Managerial:  •   Low  efficiency  •   Low  capacity  

•   Lack  of  managerial  autonomy  •   Low  transparency  

•   Poor  accountability  •     Low  consumer  responsiveness  

Challenges  to  Water  Security    in  Water  Services  

Environment/Public  Health  

•     Public  health  needs/risks  

•   Environmental  health  • Water  conserva#on  

Socio-­‐Poli#cal  •   Inequity  (coverage/access)  

•   Affordability  •   Improved  living  condi#ons  

(service  standards)  •   Inadequate  public  par#cipa#on  

(Transparency  &  Acctblty.)  Financial  

•     Lack/unreliability  of  funding  

•   Past  underinvestment  •   Unsustainable  tariffs    

Framing  Water  Services  Regula0on    &  Water  Security  (2)  

Framing  Water  Services  Regula0on    &  Water  Security  (3)  

•  Key  compounding  issues  to  consider  in  Kenya’s  water  services  sector:  –  Demography  &  Urbaniza0on;  urban  crisis  

–  Poverty;  vulnerability  of  (urban)  poor  –  Human  rights  (non-­‐discrimina0on,  empowerment)  

–  Governance  (accountability)  &  poli0ciza0on    –  Long-­‐term  sustainability  (financial,  environmental)  

&  Regulatory  risks  

 

Urban  Crisis  &  Water  Security  (1)  

The developing world, with its rapidly expanding urban centers, will see the biggest increases in water demand, as its population grows larger and more affluent. Migrations to cities will drive major increases in water demand for personal consumption, sanitation, industry (…)

Global Water Security, Intelligence Community Assessment, February 2012

Increasing  demand  in  urban  centres  as  water  risk:  

YET:  Need  to  dis0nguish  between  actual  and  latent  demand;                    even  today  large  number  of  urban  poor,  whose  demand                    remains  unheard  (the  underserved)  

Urban  Crisis  &  Water  Security  (2)    

Sanitation/public health hotspots within cities/towns!

Nairobi   282  low  income  areas  Kenya   7.9  million  people  living  in  1,882  low  

income  areas  in  212  ci0es  and  towns  

Urban low income (underserved) areas are areas of water insecurity!

Urban  Crisis  &  Water  Security  (3)  

Urban  un(der)served  .  .  .    § Unsafe water sources, e.g. shallow

wells, boreholes

§ Water quality poor and uncontrolled

§ Water price high and uncontrolled

§ Water availability unpredictable

§ Unregulated small scale providers

§ Disastrous sanitary situation

§  Informal environment (no accountability)

High level of water insecurity coupled with: steady deterioration of living conditions, more severe manifestation of poverty than in rural setting

Human  Rights  and  Water  Security  

Cons0tu0on  of  Kenya  (2010)  recognizes  Human  Right  to  Water  and  Sanita#on,  obliging  water  sector  ins0tu0ons  to  work  towards  its  progressive  realiza0on  

This  involves:  1.  Targe0ng  of  policy,  planning  &  implementa0on  towards  more  

equitable  access    2.  Formaliza0on  of  urban  water  services,  ensuring  same  minimum  

standards  for  all  (water  quality,  availability,  price)  3.  Socially  acceptable  commercialisa0on  for  sustainable  services  4.  Regular  monitoring  of  &  public  repor0ng  on  progress  5.  Ins0tu0onaliza0on  of  consumer  par0cipa0on  and  empowerment  

Governance  and  Water  Security  (1)  

§  Many  afempts  to  address  water  mgmt  issues  have  been  inadequate;  WHY???  

 Capital  investments  in  infrastructure  .  .  .  also  require  investments  in  capacity  and  ins9tu9onal  development  to  realize  and  sustain  the  benefits  of  increased  investments  

                                                       WWDR  3  

§  Even  most  highly  acclaimed  technical  and  managerial  exper0se  not  useful  in  environment  of  dysfunc#onal  governance  

§  Lack  of  Good  Governance  one  of  root  causes  of  major  constraints  within  our  socie0es;  water  sector  is  NO  EXCEPTION!  

 

Governance  and  Water  Security(2)  

Poor  governance  results  in  chain  of  water  insecurity  ↓  Lack  of  transparency  &  accountability  ↓  Abuse  of  power  ↓  Deficiencies  in  the  management  of  water  supply  and  

sanita0on  ↓  Poor/ineffec0ve  investments,  poor  service  delivery  ↓  Non-­‐fulfillment  of  the  needs  of  the  popula0on  ↓  (a)  consumer  discrimina#on  –  the  underserved  &      (b)  consumer  frustra#on  –  the  “badly  served”  

↓  Low  revenues  ↓  Ul0mately,    leads  to  water  insecurity,  threatening    human  

lives  &  sector  sustainability  

The  Role  of  Regula0on  in  Ensuring    Water  Security  (1)  

Protec0ng  consumers  by    1.  Ensuring  same  minimum  standards  for  all  through  formaliza#on  

of  services    

2.   Se[ng,  monitoring  &  enforcing  service  standards;  inter  alia  rela0ng  to  risk  mi0ga0on  (water  quality,  availability)  

3.  Approving  jus0fied  tariffs  for  financial  sustainability  4.  Ensuring  cost  effec#ve  &  efficient  mgmt.  &  opera#on  of  services  

5.  Ensuring  value  for  money  and  impact  in  investments  

   

The  Role  of  Regula0on  in  Ensuring    Water  Security  (2)  

Protec0ng  consumers  by    6.   Ensuring  sound  corporate  governance  7.   Holding  u#li#es  accountable  (public  

repor0ng,  enforcement)  

8.  Monitoring  performance  and  spurring  yards#ck  compe##on  (u0lity  ranking)  

9.   Empowering  consumers  through  ins0tu0onalised  engagement  mechanism    

Trend  in  Water  Access  in  Urban  Kenya  

40   42  

60   60   63  70  

0  

10  

20  

30  

40  

50  

60  

70  

80  

2005/06   2006/07   2007/08   2008/09   2009/10   2010/11  

%    W

ater  Coverage  

Year  

Improvement  over  Time  (21  main  urban  WSPs)  

Trends  in  Kenya’s  Water  Sector  Budget  

Water Sector Budget (MWI)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2005/06

2006/07

2007/08

2008/09

2009/10

2010/2011

2011/2012

Fiscal Year

Ksh

Mill

ions

Recurrent

Development

Total

2/3 donor Contribution

Regulatory  Risks  

§  Non-­‐conducive  policy  environment    §  Regulatory  capture  (vested  poli0cal  interests,  powerful  

agents,  internal  corporate  governance)    

§  Financial  and  managerial  autonomy    §  Lack  of  capacity  to  balance  actors’  needs    §  Legi0macy  from  consumer  perspec0ve  

THANK  YOU  FOR  YOUR  ATTENTION!