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Microfinance for Rural Piped Water Services in Kenya. Using an output-based aid approach for leveraging and increasing sustainability
Summary
The Water and Sanitation Program (WSP) facilitated a pilot project in Kenya to help CBOs develop and manage water supply systems. This paper describes the pilot project which uses an output-based aid approach to leverage co-financing from a private commercial microfinance bank. The project combines a number of innovations: use of microfinance to leverage commercial resources; an output-based aid structure to ensure appropriate incentives; and the development of a market for business development services to increase sustainability of small water projects.
About the publisher
The Water and Sanitation Program (WSP) is a multi-donor partnership administered by the World Bank to support poor people in obtaining affordable, safe and sustainable access to water and sanitation services. WSP works directly with client governments at the local and national level in 25 countries through regional offices in Africa, East and South Asia, Latin America and the Caribbean, and in, Washington D.C. www.wsp.org
