Privatization of the urban water supply in Kenya: Policy options for the poor

This paper considers how the government of Kenya's plans to privatize water supplies in urban areas could ensure that the needs of those living in informal settlements and of others with inadequate water provision are served. The need for reform in the water sector is evident from the years of poor performance and the growing numbers lacking piped provision. The government has chosen privatization as the main policy direction. However, privatization can cause the needs of the unserved and of low-income groups in general to be ignored. This paper discusses various policy options to secure advantage for these groups, within the frarnework of a privatized water sector. These include participatory sector planning, social tarification, contractual clauses, water trust funds and support for alternalive water suppliers.