Public Disclosure Authorized

FOR OFFICIAL USE ONLY

Report No: PAD5449

INTERNATIONAL DEVELOPMENT ASSOCIATION

Public Disclosure Authorized

PROGRAM APPRAISAL DOCUMENT

ON A
PROPOSED CREDIT
IN THE AMOUNT OF
EUR 187.6 MILLION
(US$200 MILLION EQUIVALENT)

AND

A PROPOSED GRANT
IN THE AMOUNT OF SDR 38.1 MILLION
Public Disclosure Authorized

(US$50 MILLION EQUIVALENT)

FROM THE WINDOW FOR HOST COMMUNITIES AND REFUGEES

TO THE
REPUBLIC OF KENYA

FOR A
WATER, SANITATION, AND HYGIENE PROGRAM
Public Disclosure Authorized

November 29, 2023

Water Global Practice

Eastern and Southern Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official
duties. Its contents may not otherwise be disclosed without World Bank authorization.
 CURRENCY EQUIVALENTS
(Exchange Rate Effective October 31, 2023)

Currency Unit = Kenya Shilling (K Sh)

US$1 = EUR 0.94

US$1 = KSh 150.70

US$1 = SDR 0.76

FISCAL YEAR
July 1 - June 31

Regional Vice President: Victoria Kwakwa

Regional Director: Iain G. Shuker
Country Director: Keith E. Hansen
Practice Manager: Francis Ghesquiere
Task Team Leaders: Pascaline Wanjiku Ndungu, Victor Vazquez Alvarez
 ABBREVIATIONS AND ACRONYMS

AM Accountability Mechanism
APA Annual Performance Assessment
BCC Behavior Change Communication
CAJ Commission on Administrative Justice
CBA Cost-Benefit Analysis
CEC County Executive Committee
CLTS Community-Led Total Sanitation
CPF Country Partnership Framework
CWS Community-Wide Sanitation
CWSS&IP County-Wide Water and Sanitation Strategy and Investment Plan
DLI Disbursement-Linked Indicator
DRS Department of Refugee Services
ECD Early Childhood Development
E&S Environmental and Social
EIRR Economic Internal Rate of Return
ESHS Environmental, Social, Health, and Safety
ESHSRM Environmental, Social, Health and Safety Risks Management
ESMF Environmental and Social Management Framework
ESSA Environmental and Social Systems Assessment
FM Financial Management
FSA Fiduciary Systems Assessment
GDP Gross Domestic Product
GHG Greenhouse Gas
GM Grievance Management
GoK Government of Kenya
GRS Grievance Redress Service
HCF Healthcare Facility
HLO Higher Level Objective
IGWSC Intergovernmental Water Sector Coordination
IPF Investment Project Financing
IRR Internal Rate of Return
IVA Independent Verification Agent
KNAP Kenya National Adaptation Plan
KPHC Kenya Population and Housing Census
KPI Key Performance Indicator
K-WASH Kenya Water, Sanitation, and Hygiene Program
M&E Monitoring and Evaluation
MDAs Ministries, Departments, and Agencies
MHM Menstrual Hygiene Management
MoE Ministry of Education
MoH Ministry of Health
MoWSI Ministry of Water, Sanitation, and Irrigation
MTP Medium-Term Plan
NAWASIP National Water and Sanitation Investment Program
NRW Non-Revenue Water
NT National Treasury
O&M Operation and Maintenance
OCCR Operational Cost Coverage Ratio
OD Open Defecation
ODF Open Defecation Free
PAP Program Action Plan
PCM Private Capital Mobilization
PDO Program Development Objective
PFM Public Financial Management
PforR Program-for-Results
PIAP Performance Improvement Action Plan
PIR Policy, Institutional, and Regulatory
PIU Program Implementation Unit
PMU Program Management Unit
POM Program Operations Manual
PSC Program Steering Committee
PTC Program Technical Committee
RA Results Area
RVR Results Verification Report
SDGs Sustainable Development Goals
SDWS State Department for Water and Sanitation
SRM Social Risk Management
TA Technical Assistance
UNHCR United Nations High Commissioner for Refugees
WASH Water, Sanitation, and Hygiene
WASREB Water Services and Regulatory Board
WHR Window for Host Communities and Refugees
WSIGCF Water Sector Intergovernmental Sector Coordination Framework
WSP Water Service Provider
WSS Water and Sanitation Services
Water Fund Water Sector Trust Fund
WWDA Water Works Development Agency
The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

TABLE OF CONTENTS

DATASHEET ....................................................................................................................................... 1
I. STRATEGIC CONTEXT .................................................................................................................. 8
A. Country Context ....................................................................................................................................... 8
B. Sectoral (or Multi-Sectoral) and Institutional Context ............................................................................. 9
C. Relationship to the CPS and Rationale for Use of Instrument ............................................................... 11
II. PROGRAM DESCRIPTION .......................................................................................................... 12
A. Government Program............................................................................................................................. 12
B. Theory of Change ................................................................................................................................... 13
C. PforR Program Scope.............................................................................................................................. 15
D. Program Development Objective(s) (PDO) and PDO Level Results Indicators ...................................... 17
E. Disbursement Linked Indicators and Verification Protocols .................................................................. 18
III. PROGRAM IMPLEMENTATION .................................................................................................. 22
A. Institutional and Implementation Arrangements .................................................................................. 22
B. Results Monitoring and Evaluation ........................................................................................................ 23
C. Disbursement Arrangements ................................................................................................................. 23
D. Capacity Building .................................................................................................................................... 24
IV. ASSESSMENT SUMMARY .......................................................................................................... 24
A. Technical (including program economic evaluation) ............................................................................. 24
B. Fiduciary 27
C. Environmental and Social ....................................................................................................................... 28
D. Private Capital Facilitation, Gender, and Citizen Engagement .............................................................. 30
V. GRIEVANCE REDRESS SERVICE .................................................................................................. 31
VI. KEY RISKS 31
ANNEX 1. RESULTS FRAMEWORK MATRIX ........................................................................................ 34
ANNEX 2. DISBURSEMENT ARRANGEMENTS AND VERIFICATION PROTOCOL ..................................... 49
ANNEX 3. PROGRAM ACTION PLAN .................................................................................................. 54
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

@#&OPS~Doctype~OPS^dynamics@padpfrbasicinformation#doctemplate
DATASHEET

BASIC INFORMATION

Project Beneficiary(ies) Operation Name

Kenya Kenya Water, Sanitation, and Hygiene Program
Does this operation have an IPF Environmental and Social Risk
Operation ID Financing Instrument
component? Classification (IPF Component)
Program-for-Results
P179012 Yes Substantial
Financing (PforR)

@#&OPS~Doctype~OPS^dynamics@padpfrprocessing#doctemplate
Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [ ] Fragile State(s)

[ ] Contingent Emergency Response Component (CERC) [✓] Fragile within a non-fragile Country
[ ] Small State(s) [ ] Conflict
[ ] Alternative Procurement Arrangements (APA) [ ] Responding to Natural or Man-made Disaster
[ ] Hands-on Expanded Implementation Support (HEIS)

Expected Approval Date Expected Closing Date

20-Dec-2023 30-Jun-2030
Bank/IFC Collaboration
No

Proposed Program Development Objective(s)

To increase sustainable access to improved water and sanitation services, eliminate open defecation, and improve the
financial performance of water services providers in selected counties, including refugee-hosting counties.

@#&OPS~Doctype~OPS^dynamics@padborrower#doctemplate

Page 1 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Organizations
Borrower: The Republic of Kenya
Implementing Agency: Ministry of Water, Sanitation and Irrigation - State Department of Water and Sanitation

Contact: Mr. Julius Korir, CBS

Title: Principal Secretary, Water and Sanitation-State Department for Water and Sanitation

Telephone No: 2540202716103

Email: ps@water.go.ke

@#&OPS~Doctype~OPS^dynamics@padfinancingsummary#doctemplate
COST & FINANCING (US$, Millions)

Maximizing Finance for Development

Is this an MFD-Enabling Project (MFD-EP)? Yes

Is this project Private Capital Enabling (PCE)? Yes

SUMMARY

Government program Cost 8,500.00

Total Operation Cost 458.00

Total Program Cost 438.00

IPF Component 20.00

Total Financing 458.00

Financing Gap 0.00

Financing (US$, Millions)

World Bank Group Financing

International Development Association (IDA) 250.00

IDA Credit 200.00

IDA Grant 50.00

Non-World Bank Group Financing

Commercial Financing 8.00

Page 2 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Unguaranteed Commercial Financing 8.00

Counterpart Funding 200.00

Borrower/Recipient 200.00

IDA Resources (US$, Millions)

Guarantee
Credit Amount Grant Amount SML Amount Total Amount
Amount

Window for Host

Communities and 0.00 50.00 0.00 0.00 50.00
Refugees (WHR)

National
Performance-Based 200.00 0.00 0.00 0.00 200.00
Allocations (PBA)

Total 200.00 50.00 0.00 0.00 250.00

@#&OPS~Doctype~OPS^dynamics@paddisbursementprojection#doctemplate
Expected Disbursements (US$, Millions)
WB Fiscal
Year 2024 2025 2026 2027 2028 2029 2030

Annual 1.26 17.38 27.62 48.26 57.99 57.66 39.83

Cumulative 1.26 18.64 46.26 94.53 152.51 210.18 250.00

@#&OPS~Doctype~OPS^dynamics@padclimatechange#doctemplate
PRACTICE AREA(S)

Practice Area (Lead) Contributing Practice Areas

Environment, Natural Resources & the Blue Economy;
Water
Governance; Social Sustainability and Inclusion

CLIMATE

Climate Change and Disaster Screening

Yes, it has been screened and the results are discussed in the Operation Document

Page 3 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

@#&OPS~Doctype~OPS^dynamics@padrisk#doctemplate
SYSTEMATIC OPERATIONS RISK- RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance ⚫ Substantial
2. Macroeconomic ⚫ Substantial
3. Sector Strategies and Policies ⚫ Moderate
4. Technical Design of Project or Program ⚫ Substantial
5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial
6. Fiduciary ⚫ Substantial
7. Environment and Social ⚫ Substantial
8. Stakeholders ⚫ Moderate
9. Other ⚫ Substantial
10. Overall ⚫ Substantial

@#&OPS~Doctype~OPS^dynamics@padpfrcompliance#doctemplate
POLICY COMPLIANCE

Policy
Does the project depart from the CPF in content or in other significant respects?
[ ] Yes [✓] No

Does the project require any waivers of Bank policies?

[ ] Yes [✓] No

Legal Operational Policies Triggered?

Projects on International Waterways OP 7.50 Yes
Projects in Disputed Area OP 7.60 No

ENVIRONMENTAL AND SOCIAL

Page 4 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Environmental and Social Standards Relevance Given its Context at the Time of Appraisal
E & S Standards Relevance
ESS 1: Assessment and Management of Environmental and Social Risks and
Relevant
Impacts
ESS 10: Stakeholder Engagement and Information Disclosure Relevant
ESS 2: Labor and Working Conditions Relevant
ESS 3: Resource Efficiency and Pollution Prevention and Management Relevant
ESS 4: Community Health and Safety Relevant
ESS 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant
ESS 6: Biodiversity Conservation and Sustainable Management of Living Natural
Relevant
Resources
ESS 7: Indigenous Peoples/Sub-Saharan African Historically Underserved
Relevant
Traditional Local Communities
ESS 8: Cultural Heritage Relevant
ESS 9: Financial Intermediaries Not Currently Relevant
NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential
environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review
Summary (ESRS).

@#&OPS~Doctype~OPS^dynamics@padlegalcovenants#doctemplate
LEGAL
Legal Covenants
Sections and Description
The Recipient shall, prior to the disbursement of funds to any Participating County, not later than three (3) months after
the Effective Date, enter into a Participation Agreement with each Participating County, in form and substance
satisfactory to the Association, which shall provide details of the mutual responsibilities for the implementation of the
Operation, including the obligation of each Participating County to: (a) establish a County Program Implementation Unit
referred to in Section I.A.5 of Schedule 2 to this Agreement; (b) carry out its activities under the Operation with due
diligence and efficiency and in accordance with the Operations Manual; (c) maintain policies and procedures adequate
to enable it to monitor the progress of its activities under the Operation and the achievement of the Operation's
objectives; (d) enable the Recipient and the Association to inspect the Operation activities within the respective
Participating County’s jurisdiction, and any relevant records and documents; and (e) prepare and furnish to the
Recipient and the Association all such information as the Recipient or the Association may reasonably request relating
to the foregoing.
The Recipient shall cause each Participating County to establish not later than three (3) months after the Effective Date,
and thereafter maintain throughout the implementation period of the Operation, a dedicated County Program
Implementation Unit within its respective County water department with composition, mandate and resources
satisfactory to the Association, to be responsible for managing Operation activities at the County level, such units to

Page 5 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

include staff from the County department of health to coordinate the sanitation and open defecation (ODF) activities,
accountant/staff from the County treasury to support financial management and expenditures tracking aspects, as well
as social and environmental experts, to manage the environmental, social, health and safety risks and impacts of the
Operation (“County Program Implementation Unit”).
(a) The Recipient shall, not later than three (3) months after the Effective Date, enter into, and thereafter comply with,
collaborative arrangements with the DRS, CoG, SDD, and such other entities as may be relevant and provided in the
Operations Manual, detailing their respective roles in the implementation of the Operation, under such terms as
detailed in the Operations Manual. (b) Without limitation to the provisions of sub-paragraph (a) immediately above, the
Recipient shall also enter into, not later than three (3) months after the Effective Date, and thereafter comply with,
collaborative arrangements with the following entities, in form and substance satisfactory to the Association, as further
detailed in the Operations Manual: (i) Water Services Regulatory Board, which shall: (A) oversee compliance of WSPs
with regulatory conditions under DLI 6; (B) provide capacity building to WSPs and County governments in the design of
County-level WASH institutional structures; (C) support WSPs in the preparation and implementation of their respective
Performance Improvement Action Plans; (ii) Water Sector Trust Fund, which shall provide technical assistance to the
WSPs in inter alia the preparation of bankable projects for commercial financing and facilitating the transfer of portion
of Association financing under DLIs 6-8; and (iii) Water Works Development Agencies, which shall provide technical
assistance and capacity building to participating County governments and WSPs in the area of their expertise.
The Recipient shall: (a) not later than three (3) months after the Effective Date, retain an entity with experience,
independence, and capacity and under the terms of reference acceptable to the Association (“Independent Verification
Agent”) to verify the data and other evidence supporting the achievement of one or more Disbursement Linked Results
(DLRs) as set forth in Schedule 4 to this Agreement; (b) cause the Independent Verification Agent to undertake
verification audits, including Annual Performance Assessments, in accordance with verification protocols agreed with
the Association and thereafter furnish to the Association the corresponding reports of the Independent Verification
Agent in a timely manner and in form and substance satisfactory to the Association as detailed in the Verification
Protocols.
The Recipient shall establish not later than three (3) months after the Effective Date, and thereafter maintain
throughout the implementation of the Operation, (a) a Program Steering Committee with composition, resources and
terms of reference satisfactory to the Association, to be responsible for, inter alia, providing policy guidance, oversight
and strategic direction, including inter-MDA’s coordination, and such other functions and responsibilities as detailed in
the Operations Manual (“Program Steering Committee” or “PSC”); and (b) a Program Technical Committee with
composition, resources and terms of reference satisfactory to the Association, to be responsible for, inter alia,
deliberating and preparing motions for decision-making by the PSC, reviewing implementation progress and financial
accountability reports, addressing any emerging technical issues and challenges in implementation of the operation,
and such other functions and responsibilities as detailed in the Operations Manual ("Program Technical Committee” or
“PTC”).

@#&OPS~Doctype~OPS^dynamics@padconditions#doctemplate
Conditions
Type Citation Description Financing Source
The Association is satisfied
Effectiveness Article V that the Recipient has IBRD/IDA
maintained an adequate

Page 6 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

refugee protection
framework.
The Recipient has
established the Program
Management Unit (PMU)
with composition,
resources and terms of
reference satisfactory to
the Association, and has
recruited/deployed to the
PMU, a Program
coordinator, a
Effectiveness Article V procurement specialist, an IBRD/IDA
accountant, an internal
auditor, an environmental
specialist, a social
specialist, a monitoring and
evaluation specialist - all
with qualifications,
experience and under
terms of reference
satisfactory to the
Association.
The Recipient has prepared
and adopted the
Effectiveness Article V Operations Manual in form IBRD/IDA
and substance satisfactory
to the Association.

Page 7 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

I. STRATEGIC CONTEXT

A. Country Context

1. Over the last 20 years, Kenya has achieved strong development gains, becoming a lower-middle-income country
with a per capita gross domestic product (GDP) of US$2,006.1 Kenya is one of the largest economies in Africa and the first
in East Africa. Kenya’s economy staged a remarkable recovery from the COVID-19 pandemic. With a GDP growth at 4.8
percent in 2022, economic performance softened after the strong rebound from the COVID-19 crisis at 7.5 percent in
2021. Even though the economy faced challenging global financial conditions, fuel, and food price shocks, and a historic
drought that affected the economy, especially in the second half of 2022, Kenya’s medium-term growth remains strong.
The national poverty rate fell from 46.7 percent in 2005/2006 to 33.6 percent in 20192. The onset of COVID-19 was
associated with an increase in the poverty rate to 42.9 percent in 2020, but this declined to 38.6 percent in 2021 when
recovery from the pandemic began. There are significant disparities between counties, with a higher incidence of poverty
in the north and northeastern counties. Female-headed households tend to have a higher poverty headcount rate (38.8
percent in 2021, compared to 32.7 percent for their male counterparts). The poverty rate increases to 42.5 percent among
rural female-headed households, compared to 35.5 percent for rural male-headed households.

2. The Government of Kenya (GoK) aims for the country to reach middle-income industrialized status—providing
a high quality of life to all citizens, including universal access to water supply and sanitation services—by 2030. This
ambition is guided by the Kenya Vision 2030, the country’s long-term development blueprint, which is aligned with the
UN Sustainable Development Goals (SDGs) and implemented through successive five-year medium-term plans (MTPs).
Under the new MTP 2023–26, the Government has prioritized implementation of policies and structural reforms and has
increased investments in five sectors3 envisaged to have the largest impact and links to the economy as well as on
household welfare—collectively under the Bottom-Up Economic Transformation Agenda (BETA) (2022–2027). The BETA
prioritizes water as a critical enabling factor for economic transformation with a specific strategy of increasing both storage
through dams and access to water and sanitation at the household level, with an emphasis on rural areas, to close the
urban-rural access gap.

3. Kenya is highly vulnerable to the impacts of climate change, with significant impacts on economic growth. Over
the past 50 years, changes in temperature and rainfall patterns have resulted in more frequent weather-related disasters
such as floods, droughts, and landslides with a profound impact on Kenya’s economy and people’s well-being. Each
drought event affected 4.8 million people on average, and in 2017, 3.4 million Kenyans were classified as food insecure
due to droughts4. Further, warming in Kenya and in the rest of continental Africa is projected to be greater than the global
mean (2.8oC) during the twenty-first century,5 meaning that more climate change-exacerbated floods and droughts are
expected.

4. For more than three decades, Kenya has been home to a significant population of refugees and asylum seekers.
There are 636,024 refugees and asylum seekers in the country, the majority of whom live in two designated refugee camps

1 World Bank. 2020. GDP per Capita Data. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=KE.

2 Kenya National Bureau of Statistics. 2023. Kenya Poverty Report-2021. https://www.knbs.or.ke/download/the-kenya-poverty-report-2021/
3 Agricultural transformation, Micro, Small and Medium Enterprises (MSMEs), Housing and Settlement, Healthcare and Digital Superhighway and

Creative Industry.
4 Government of Kenya.2018. National Climate Change Action Plan (Kenya): 2018-2022.
5 IPCC, 2007: Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report of the

Intergovernmental Panel on Climate Change, M.L. Parry, O.F. Canziani, J.P. Palutikof, P.J. van der Linden and C.E. Hanson, Eds., Cambridge University
Press, Cambridge, UK, 976pp.

Page 8 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

—with 269,545 in Dadaab Camp in Garissa County and 270,273 in Kakuma Camp and Kalobeyei Settlement in Turkana
County.6 The two camps are under the management of the GoK’s Department of Refugee Services (DRS), with support
from the United Nations High Commission for Refugees (UNHCR) and humanitarian partners. The inflow of refugees has
significantly changed the population, spatial, and social dynamics of host counties.7 The GoK has demonstrated its
commitment to the Global Compact on Refugees by enacting the Refugees Act of 2021, which grants refugees more rights
and protections, and by drafting the Shirika8 plan, which seeks to create more integrated settlements where refugees can
live, access social services, and work alongside Kenyans.

B. Sectoral (or Multi-Sectoral) and Institutional Context

5. Lack of water is a growing binding constraint for Kenya’s development: the country is water-scarce with
variable, low, and declining freshwater resources against a fast-rising demand. Kenya’s renewable freshwater per capita
availability has halved in the past 30 years. Decades of underinvestment in water infrastructure and watershed protection
means that Kenya’s water withdrawal is less than 15 percent of its renewable resources and its dam storage capacity is
only about 103m3 per capita, well below the African average of 876m3 per capita.9 Furthermore, the rising population,
economic growth, and urbanization, combined with climate change impacts, place increasing pressure on and cause
conflict over poorly developed water resources.

6. Access to potable water and sanitation services (WSS) in Kenya lags behind that of other public services within
the country and suffers from significant rural-urban disparities. Twice as many Kenyans have access to electricity, and 20
percent more have access to mobile phones than to basic sanitation.10 Furthermore, while 91 percent of the urban
population has access to improved water services and 58 percent to piped water, only 63 percent of the rural population
has access to improved water services and only 19 percent to piped water. The inequalities are similar for sanitation
services where 93 percent of urban households have access to improved sanitation services compared to 75 percent in
rural areas. Disparities also exist across counties. Nairobi County has near universal access to improved WSS, while in 10
counties, less than 50 percent of households have access to improved water. Additionally, almost 83 percent of all open
defecation (OD) occurs in 15 counties, mainly in the northern and northeastern regions.11

7. Access to water, sanitation, and hygiene (WASH) services in public schools and health facilities in Kenya remains
inadequate, undermining human capital developmental outcomes. The situation in the 32,038 formal public schools in
Kenya is dire: about 15,000 children are in schools without any WASH facilities available to them, 0.3 million without
available water, and another 0.3 million without access to a sanitation facility.12 There are about 130,000 children living
with disabilities in formal public schools, requiring special consideration for access to WASH facilities. Poor access to
WASH, and specifically to menstrual hygiene management (MHM) services, has been identified as one of the significant
barriers preventing girls from attending and completing school.13 A sampling of healthcare facilities (HCFs) indicated a

6 United Nations High Commissioner for Refugees (UNHCR) (July 2023) https://www.unhcr.org/ke/wp-content/uploads/sites/2/2023/08/Kenya-
Statistics-Package-31-July-2023-DIMA.pdf.
7 For a map, see https://data2.unhcr.org/en/country/ken.
8 Socioeconomic Hubs for Integrated Refugee Inclusion in Kenya.
9 UN University Institute for Water, Environment and Health (2022) Water Security in Africa: A Preliminary Assessment, Issue 13

https://inweh.unu.edu/water-security-in-africa-a-preliminary-assessment/
10 Kenya Population and Housing Census (2019). https://www.knbs.or.ke/publications/.
11 Kenya Population and Housing Census (2019). https://www.knbs.or.ke/publications/.
12 Ministry of Education. 2020. WASH in Schools Situation Analysis. Unpublished draft.
13 Alexander, Kelly T., et al. 2014. “Water, Sanitation and Hygiene Conditions in Kenyan Rural Schools: Are Schools Meeting the Needs of

Menstruating Girls?” Water 6 (5): 1453–1466. https://doi.org/10.3390/w6051453.

Page 9 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

similar situation: over half of those sampled had no access to clean water or adequate hand hygiene stations, and at least
20 patients shared one toilet.

8. WSS access rates in the two major refugee-hosting counties of Turkana and Garissa lag behind national average.
Access to improved water is at 57 percent in Garissa and 52 percent in Turkana County, while access to improved sanitation
is at 17 percent in Garissa and 7 percent in Turkana. The two counties have high levels of OD, with Garissa at 36.2 percent
and Turkana at 68.1 percent.14 In addition, while water access rates are higher in the camps than for the host communities,
there are problems of service quality, with low volumes per capita, high leakages, and long lines at the water kiosks.15
Access to sanitation services is low and weak operational and financial sustainability of WSS poses a significant public
health risk in the congested camps.

9. Under Kenya’s devolved system of government, responsibility for water sector development and service
provision is shared between the national and county governments. Both levels of government have an obligation to
increase people’s access to WSS. The national government is responsible for water sector policy leadership, regulation,
the provision of bulk infrastructure that serves more than one county, and financial support to county governments to
achieve sectoral objectives. The county governments are responsible for service provision.

10. Water sector reforms have accelerated in recent years, but there are still implementation challenges stymieing
full realization of the benefits of devolved services delivery. Kenya’s devolved system is characterized by high levels of
political, administrative, and fiscal autonomy and discretion. The new Water Policy and water resources management,
water and sanitation services, and irrigation regulations passed in 2022 are important milestones in advancing the
devolved governance system started with the 2010 Constitution and the 2016 Water Act. Establishment of a funding
mechanism that incentivizes performance at the county level and operationalization of an intergovernmental coordination
framework are pending critical milestones for achieving universal WSS access.

11. Chronic inefficiencies in the operation of water service providers (WSPs), coupled with gaps in the governance
of rural water service provision necessitate substantial subsidies for operation and maintenance (O&M), at the expense
of service expansion. In line with the 2016 Water Act, WSS provision is devolved to the counties who are the owners of
WSPs.16 On average, Kenyan water utilities lose about US$90 million annually due to low operational efficiencies.17 Non-
revenue water (NRW) has stagnated at a national average of 45 percent over the past decade, while energy costs have
remained high, reaching as high as 50 percent of total operating costs for some WSPs. This has had a negative impact on
the financial stability and capacity of WSPs to expand their services. Further, COVID-19 imposed significant financial
constraints on WSPs.18

12. Service gaps and inefficiencies are larger in rural areas. Most rural water supply systems fall outside the
jurisdiction of licensed WSPs. Such schemes are operated by unregulated community groups, with tariffs that do not
reflect actual costs and revenues that are not well monitored. The result is unreliable service provision and frequent non-
functionality of these schemes. A more sustainable operation and financing model for rural WSPs is required to improve
their efficiency and enable them to increase operating cost coverage, thus expanding services to more rural households.

14 Kenya Population and Housing Census (2019).

15 The average water volume per capita in Kakuma camp is 12.75 litres per capita per day, decreasing to only 6 litres per day in Kalobeyei.
Compared to refugees, the host communities have even lower access levels.
16 There are about 87 public and three privately owned WSPs that are licensed and regulated by WASREB.
17 WASREB. 2022. A Performance Report of Kenya’s Water Services Sector - 2020/21.
18 For instance, revenues declined by 40 percent between February and April 2020.

Page 10 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

13. Multiple use needs in rural systems present a reality to be addressed technically and institutionally to ensure
relevance, cost-effectiveness, and sustainability of WSS investments. Most rural households will use available domestic
water supply systems for other productive activities, including for home gardens and livestock (multiple water
use/WASH+). As these uses are often overlooked in technical and institutional setups, the lack of an authorizing
environment can lead to overuse, low-cost recovery, breakdowns, or restrictions on uses that directly contribute to
improving human capital (for example, nutrition) and climate resilience needs.19 In Kenya, it has been assessed that
inclusion of WASH+ considerations typically result in high additional and pro-poor benefits, with good cost recovery.20 To
address these challenges, the GoK has approved the National Water and Sanitation Investment Program (NAWASIP)
described under section II. Program Description, A. Government Program.

C. Relationship to the CPS and Rationale for Use of Instrument

14. The operation is aligned with the World Bank’s Country Partnership Framework (CPF) for Kenya (FY23–FY28,
Report No.172255-KE, discussed by the Board in November 2022). 21 The operation supports meeting the CPF’s goal “to
support Kenya’s transformation into a middle-income economy that achieves inclusivity and resilience” as well as the
achievement of Higher Level Objective 1 (HLO1) on faster and more equitable labor, productivity, and income growth;
HLO2 on greater equity in service delivery outcomes; and HLO3 on greater resilience and sustainability of Kenya’s natural
capital, through contributing to CPF Objectives 4, 5, 6, and 7 on shrinking disparities in learning and health outcomes;
extending infrastructure services to the last mile; increasing household resilience to, and national preparedness for,
shocks; and reducing Kenya’s water insecurity, respectively. The operation aligns with World Bank’s support to implement
Kenya’s Comprehensive Refugee Response Framework under Objective 6 of the CPF. It also aligns with the World Bank
Evolution and new mission to end extreme poverty and boost shared prosperity on a livable plant, as it promotes
sustainability, inclusion, and resilience. Additionally, it is aligned to the World Bank Group’s Gender Equality Strategy
(2016-2023) Objective 1 and 4 on Improving Human Endowment and Enhancing Women’s Voice and Agency respectively,
and to Africa East Regional commitment to accelerate universal access to safely managed WSS in the region by
investments in improved WSS.

15. The Program for Results (PforR) instrument is increasingly used in World Bank financed operations in Kenya,
which has active PforR lending operations in the urban, energy, social, and other sectors. Lessons from Vietnam, Egypt,
Mexico, and Tanzania indicate that a results-based approach can be effective in creating new incentive frameworks for
local institutions and service providers to deliver better quality and lasting services to the population and in
institutionalizing good practices. The PforR is a highly appropriate instrument to spur results while maintaining the
momentum of the sector reforms in Kenya and provide support to drive achievement of the NAWASIP objectives.

16. Investment Project Financing (IPF) has been identified as the best instrument for providing technical capacity
strengthening and PforR delivery support. The World Bank’s technical, environmental, and fiduciary assessments
identified some technical and institutional capacity weaknesses in the GoK systems. A key lesson that has emerged from
global and national PforR experience is that the results-based approach is more effective and can be implemented more
efficiently when complemented by substantial technical assistance (TA) to support client to address weaknesses in
systems, capabilities, and procedures.

19 Van Koppen, et al. 2009. Climbing the Water Ladder: Multiple-Use Water Services for Poverty Reduction. International Water and Sanitation
Centre and International Water Management Institute.
20 Hall and Davis. 2012. Productive Use of Domestic Rural Water Systems: The Kenya Case.
21 https://documents.worldbank.org/en/publication/documents-

reports/documentdetail/099421512052241562/secbos01bdb49b00208e1f0d132ef1fbe94

Page 11 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

17. The World Bank, following consultation with the UNHCR, confirms that the protection framework for refugees22
continues to be adequate in Kenya for accessing financing from the IDA20 Window for Host Communities and Refugees
(WHR). Kenya’s treatment of refugees is governed by the Refugees Act of 2021 and is largely in line with international and
regional refugee protection standards and Kenya’s commitments under the Global Compact on Refugees. It provides
protection against refoulement, and outlines asylum procedures, including registration, documentation, and refugee
status determination. The Act recognizes the rights of refugees to participate in economic and social development and
supports refugee inclusion in development planning. Refugee Regulations are being developed in consultation with
stakeholders to provide detailed procedures for implementation of the Refugees Act 2021.

II. PROGRAM DESCRIPTION

A. Government Program

18. The Government program, NAWASIP, adopted by the GoK in March 2023, aims to accelerate achievement of
universal access to WSS by 2030. The program, to be implemented at a cost of KSh 995 billion (US$8.5 billion) from 2023
to 2030, is the first jointly developed intergovernmental WSS sector investment plan. NAWASIP’s overall objective is to
accelerate the achievement of universal access to safe water supply and improved sanitation services in Kenya’s 47
counties by 2030 in an affordable, equitable, and sustainable manner. In addition to increasing access to physical
infrastructure, the program includes a targeted program of investments on enhancing the sector’s policy and institutional
efficiency including improving the performance of WSPs.

19. The NAWASIP has five components. Component 1: Storage Infrastructure and Bulk Water Transmission Systems
(US$1 billion); Component 2: Urban Water Supply and Sanitation Services (US$5 billion); and Component 3: Rural Water
Supply and Sanitation Services (US$1.7 billion) are primarily focused on improving and expanding infrastructure for
reliable, sustainable, and affordable safe water supply and sanitation services to meet the 2030 universal access targets;
Component 4: Support for Sector Efficiency Improvement and Policy Reforms Program (US$0.5 billion) and Component 5:
Program Coordination, Capacity Building and Monitoring and Evaluation (M&E) (US$0.3 billion) are focused on enhancing
sector efficiency and service delivery capacity within the devolution framework.

20. The GoK has identified several financing sources for implementation of the NAWASIP. Slightly more than half of
the cost of NAWASIP is expected to be financed through concessional lending. About one-third of NAWASIP is proposed
to be structured as public-private partnerships, and the remaining portion of NAWASIP would be supported by donor
grants, domestic commercial finance, and national and county budget allocations. Through MTP 2023—2026, the GoK
plans to allocate about US$200 million toward the implementation of Components 3, 4, and 5 of NAWASIP, which
envisages a results-based financing mechanism particularly for the county-level investments.

21. The Ministry of Water, Sanitation, and Irrigation (MoWSI) through the State Department for Water and
Sanitation (SDWS) is coordinating NAWASIP’s implementation in partnership with respective county governments. The
State Department of Water and Sewerage Development in the MoWSI is responsible for overall coordination of the
implementation of NAWASIP. At the county level, NAWASIP is being implemented by county government water
departments and their respective WSPs and at the national level, regional Water Works Development Agencies (WWDAs)
for bulk and cross-county WSS infrastructure, and the Water Sector Trust Fund (Water Fund) and Water Services and

22 Based on UNHCR’s Kenya Refugee Protection Assessment Update No. 4 from July to December 2022.

Page 12 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Regulatory Board (WASREB) for other subcomponents. The WWDAs, in addition to the implementation of cross-county
projects, also provide on-demand TA to counties.

22. In line with the Refugees Act of 2021, the GoK is developing the Shirika Plan as the main roadmap and strategy
toward the integrated settlement model for refugee management, away from a camp-based model. The Shirika Plan
will provide a multisectoral plan that delineates development solutions that benefit both refugees and host communities
through an integrated delivery approach.23 WASH is one of the priority sectors outlined in the plan that this operation will
directly support. Integrated socio-economic development plans24 have also been prepared by the hosting Counties of
Turkana and Garissa jointly with UNHCR and other humanitarian and development partners. The interventions proposed
in these plans are aligned with those under NAWASIP and the Kenya Water, Sanitation, and Hygiene Program (K-WASH),
including the focus on reforms for promoting efficiency, sustainability, and resilience of WSS. They will also complement
the Second Kenya Urban Support Program (P177048), which is supporting the transition of refugee camps into integrated
refugee and host community municipal settlements.

B. Theory of Change
23. Table 1 presents the Program’s Theory of Change (ToC). The Program will support the Government’s objective
under NAWASIP to accelerate the achievement of universal access to safe water supply and improved sanitation services
in Kenya’s 47 counties by 2030 in an affordable, equitable, and sustainable manner. First, to address the dual challenge of
increasing and sustaining access to improved rural water services, the Program will promote a sector-integrated approach
with incentives provided at the village/community, county, and national levels. Second, the Program will address rural
sanitation challenges in an integrated and comprehensive manner through a multipronged approach both at the
household and community levels, comprising community-led total sanitation (CLTS), behavior change communication
(BCC) campaigns, and sanitation marketing to eradicate OD in villages and move households up the sanitation ladder to
improved facilities, thus improving community-wide sanitation (CWS) status. Third, the Program focuses on improving the
governance, accountability, operational efficiency, and financial performance of WSPs, to increase their creditworthiness
and reduce their dependency on public subsidies for O&M, thus freeing up valuable resources to be directed to rural areas.
WSPs will be incentivized to meet and exceed national standards for women’s employment and representation in
leadership positions and community engagement, which will result in more inclusive and hence productive governance.25
Finally, the Program will incentivize the reform of sector policy, improve coordination, and strengthen sector monitoring
and reporting to ensure that sustainable rural WSS are provided. Holistically, the Program will address local flood and
drought risks and strengthen climate change adaptation and mitigation by improving climate resilience of water and
sanitation schemes. The TA activities and reforms supported under the IPF component will further strengthen and
accelerate the achievement of Program outcomes.

23 The thematic pillars of the Shirika plan include (a) system building, governance, policy, legal, and justice; (b) access to integrated services (such as,
water); (c) human capital and skills development; (d) natural resource management and climate change; (e) sustainable economic development; and
(f) durable solutions and complementary pathways.
24 In 2023, both Turkana and Garissa Counties launched multisectoral, multistakeholder socioeconomic development plans for refugees and host

community members. The Kalobeyei Integrated Socio-Economic Development Plan (KISEDP) was adopted in 2018 and updated in 2023 (KISEDP 2).
The Garissa Integrated Socio-Economic Development Plan was launched in September 2023. The local plans are part of the wider Shirika Plan lead
by the national Government.
25 Thompson, Kate, Kathleen O’Dell, Sameera Syed, Hannah Kemp, and Eva Vazquez. 2017. “Thirsty for Change: The Untapped Potential of Women

in Urban Water Management.” Deloitte Review 20: 154–167.

Page 13 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Table 1. Program Theory of Change

Proposed Activities Outputs Short-Term Outcomes Medium-Term Long-Term
Outcomes/PDO Outcomes
RA 1: Increasing sustainable access to improved water services for households in climate-vulnerable26 rural areas
1.1 Prepare county-wide water and • County water and sanitation • Climate vulnerable rural
sanitation strategy strategy and investment plan households have access to
1.2 Design and construct rural water supply approved (DLI 1) improved water services (DLI 2)
infrastructure • Water supply schemes • Sustainably functioning rural
Increased
1.3 Establish professional service delivery constructed water supply schemes (DLI 3)
sustainable
models • Delivery models for O&M access to
adopted improved water
RA 2: Increasing sustainable access to improved sanitation services, and elimination of OD in climate-vulnerable rural areas services for
2.1 Undertake sanitation & hygiene behavior • Improved sanitation facilities • Climate-vulnerable rural climate
change communication/demand creation & constructed households have access to vulnerable rural
market-based sanitation activities at • WASH facilities in rural public ECD improved sanitation services households, in
community-level and primary schools and HCFs (DLI 4) selected
2.2 Design and construct WASH facilities in constructed • Communities sustain open counties,
rural public Early Childhood Development • Fecal sludge safely emptied and defecation free status (ODF, including
Centres (ECD) and primary schools and disposed public ECD and primary schools refugees
healthcare facilities and HCFs have access to hosting
2.3 Undertake Fecal sludge management adequate WASH facilities (DLI 5) counties.
RA 3: Improved financial performance of WSPs in participating counties
Universal
3.1 WSPs undertake reforms to ensure full • WSPs fully compliant with legal • Improved operating cost Increased
compliance with legal and regulatory access to safe
and regulatory requirements for coverage of WSPs (DLI 7) sustainable
water supply
requirements good governance and downwards • Improved gender diversity in access to
and improved
3.2 Prepare WSP Performance Improvement accountability (DLI6) WSP leadership positions27 improved
sanitation
Action Plans (PIAPs) • PIAPs approved by WSP Board of • WSPs leveraging additional sanitation
services in
3.3 Prepare prioritized investments in the Directors (DLI6) Private/commercial capital (DLI services and
Kenya’s 47
PIAPs • Prioritized investments in the 8) elimination of
counties by
PIAPs implemented open
2030 in an
RA 4 - Improving Sector reforms, coordination, and M&E Capacity for integrated water management defecation
affordable,
4.1 Design NAWASIP performance-based • NAWASIP performance-based • Improved water sector providers in
equitable, and
fiscal transfer mechanism intergovernmental fiscal transfer accountability, coordination, selected
sustainable
4.2 Design national integrated WSS sub- mechanism approved by Cabinet capacity for service delivery and climate
manner
sector M&E system (DLI 9) results reporting vulnerable
4.3 Operationalize the Water Sector • WSIGCF implemented (DLI 9) counties,
Intergovernmental Sector Coordination • Annual water sector M&E report including
framework (WSIGCF) prepared (DLI 9) refugee hosting
counties.
RA 5 - Improving integrated WASH services for refugee hosting communities
Improved
5.1 Design and construct water supply • Water supply schemes, sanitation • Refugees and host community
schemes, and WASH facilities in public ECD financial
facilities and WASH facilities households provided with
and primary schools and HCFs in refugee performance of
constructed HCFs and public access to improved water and
camps and host communities WSPs in
schools in refugee camps and sanitation services (DLI 10)
selected
5.2 Undertake sanitation & hygiene behavior host communities28 • Sustainably functioning rural
counties,
change communication/demand creation & • Transition roadmap for water supply schemes (DLI 11)
including
market-based Sanitation activities in refugee integrated water utility services • Communities sustain
camps and host communities. refugee hosting
model implemented community-wide sanitation
5.3 Prepare a transition roadmap for an counties
status (ODF, public ECD and
integrated water utility model primary schools and HCFs) (DLI
12)
• Sustainable integrated water
utility services provided

26 Climate-vulnerable rural areas are areas that are prone to climate change-exacerbated floods and/or droughts. All rural areas under in this
Program are climate vulnerable.
27 There is variance across WSPs for the type and number of leadership positions that will be accounted for in indicator data. Leadership positions

include Board Members, managers, or chief Executive Officers.

28 Refugee camp WASH facility designs will take into account the need for lighting and design to minimize the risk of gender-based violence.

Page 14 of 57
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

C. PforR Program Scope

24. Program boundaries. The K-WASH will support NAWASIP in 19 counties over a six-year period (2024–2030). The
Program includes Components 3, 4, and 5 of NAWASIP in 19 counties focusing on increasing access to WSS in rural areas;
improving sector efficiency and reforms; and program coordination, capacity development, and M&E, respectively.29 Since
the Program’s primary goal is to reduce the gap in WSS coverage between rural and urban areas, the selection of these
19 counties prioritizes predominantly rural counties, using six criteria with varying weights assigned.30 Excluded activities
are those from Components 1 and 2 of NAWASIP, which include large bulk water and urban water and sanitation
infrastructure.

25. The K-WASH is a hybrid operation with a PforR and an IPF component. The total cost of the operation is US$458
million. The PforR cost is US$438 million which includes a Government contribution of US$200 million, an IDA financing of
US$230 million, of which US$40 million is an IDA grant from the WHR; a US$190 million is an IDA Credit, and US$8 million
is to be leveraged from commercial financing by participating WSPs. The IPF component consists of US$20 million in IDA
funding, of which US$10 million is an IDA grant from the WHR, and US$10 million is an IDA credit to provide TA, capacity
development, and program delivery support to key implementing agencies. Table 2 provides the financing breakdown.

Table 2. Proposed Financing Plan

Source Amount (US$, millions) % of Total
PforR 438 96
Counterpart Funding 200 —
Commercial Financing 8 —
International Development Association (IDA) 230 —
IDA Credit 190 —
IDA WHR Grant 40 —
IPF Component 20 4
IDA Credit 10 —
IDA WHR Grant 10 —
Total IDA 250 54
Total GoK Counterpart 200 44
Total Commercial Financing 8 2
Total Financing for the Operation 458 100

PforR Component (US$190 million IDA; US$40 million IDA WHR; US$200 million GoK; US$8 Commercial Financing)

26. The Program will finance results across five results areas (RAs) as follows:31

(a) RA 1: Increasing sustainable access to improved water services for households in climate-vulnerable rural
areas. This RA will first incentivize all the 19 participating counties to undertake specific policy, institutional,

29 The 19 counties are Turkana, Samburu, West Pokot, Baringo, Garissa, Mandera, Tana River, Kwale, Makueni, Kitui, Tharaka Nithi, Kirinyaga,
Murang’a, Narok, Migori, Kericho, Vihiga, Bomet, and Nandi.
30 The weights assigned to these six were (a) Marginalization - 2, (b) arid and semi-arid lands (ASAL) counties - 1, (c) Population density - 1.5, (d)

Access to clean water -2.5, (e) Open Defecation level - 2 for those with > 50 percent, and (f) revenue allocation ratio - 1. The highest-scoring counties
per region based on the nine regions mapped along water basins were prioritized and a final list of 17 counties was selected. The two refugee-hosting
counties of Garissa and Turkana were added, bringing the total number of priority counties to 19.
31 High-risk investments with significant adverse impacts on the environment or people, for example, large dams or resettlements affecting over 200

people, are not financed under K-WASH.

Page 15 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

and regulatory (PIR) reforms, primarily approval of a long-term County Water and Sanitation Strategy and
Investment Plan (CWSS&IP)32 and investment roadmap. It will then finance the expansion of access to
improved water services for populations living in rural areas of the 17 participating non-refugee hosting
counties through the construction of new water supply schemes and the rehabilitation and expansion of
existing schemes. The sustainability of these schemes will be ensured through sustainable and accountable
professional models for O&M services.33 The water schemes constructed through the Program will be
designed to meet set quality standards, consider multiple water uses (WASH+: for livestock, farmer-led
irrigation, and other productive uses to support livelihoods) to the extent required, and be climate resilient.
(b) RA 2: Increased sustainable access to improved sanitation services and elimination of open defecation in
climate-vulnerable rural areas. This RA will finance increased access to improved sanitation and hygiene
facilities for rural households, public ECD and primary schools, and HCFs in the 17 participating non-refugee
hosting counties. This will be accomplished through CLTS, sanitation marketing, and addressing of
community-specific behavioral barriers to a sustained social norm of not practicing OD, as well as the
provision of adequate menstrual health and hygiene-friendly and disabilities-accessible34 WASH facilities for
households and in public ECD and primary schools and HCFs.
(c) RA 3: Improved financial performance of Water Services Providers in participating counties. This RA will
provide incentives for county governments and county-owned WSPs in the 19 participating counties to
achieve full regulatory compliance, good corporate governance and autonomous operation of WSPs,
progressive improvement in operational efficiency, and financial performance and as a result of these
improvements in the WSP’s enabling environment and creditworthiness, leverage public funds to secure
private capital for WSS expansion. Through a blended financing model with commercial banks, the RA will
also provide matching funds to WSPs for bankable projects that contribute to an increase in their operational
cost coverage ratio (OCCR).
(d) RA 4: Improving sector reforms, coordination, and M&E Capacity for integrated water management. This
RA aims to improve the institutional, policy, and regulatory framework to increase public and private
investment for WSS in Kenya by incentivizing the implementation of a performance-based
intergovernmental financing mechanism (with integrated indicators on downward accountability to
citizens/consumers based on active WASREB key performance indicators [KPIs]), operationalizing the
intergovernmental water sector coordination framework to improve collaboration between national and
county governments, and implementing an annual water sector performance reporting system that is
aligned with the SDGs. This is intended to improve the capacity of national and county governments to jointly
monitor and fully implement NAWASIP. These improvements will also directly improve the creditworthiness
and financial viability of the WSP’s and the regulatory environment to enhance private sector financing in
the water and sanitation sector.
(e) RA 5: Improving integrated WASH services delivery for refugees and host communities. This RA will
incentivize, through WHR funding, integrated access to WASH services for households, public ECD and
primary schools, and health care facilities to facilitate the transition of water services to a development-led
county-focused management model as part of the broader transition of refugee camps into integrated host

32 The preparation of the CWSS&IP will be linked with the statutory County Integrated Development Plan and harmonized with other county level
WSS or water resources management strategies/plans including climate change mitigation and adaptation strategies.
33 As part of the PIR reforms embedded in the CWSS&IP, the county will be incentivized to adopt a predictable model for the provision of

professionalized O&M service delivery.

34 World Bank. 2017. Including Persons with Disabilities in Water Sector Operations: A Guidance Note (English). World Bank Group.

Page 16 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

community and refugee settlements in Garissa and Turkana Counties. Priority will also be given to incentivize
the adoption of an integrated refugees-host community water utility services model in refugee-hosting
municipalities.

IPF Component (US$20 million IDA including US$10 million WHR)

27. The IPF will provide TA and capacity-building activities for the implementing agencies and support for sector
monitoring and reporting and refugee policy and coordination. The SDWS will be supported to revise the WSS
Infrastructure Design Manual, strengthen the capacity of participating counties, and enhance design and construction
quality supervision. This will include specific assistance to the counties of Turkana and Garissa; DRS; and under DRS, the
UNHCR, for the remodeling and planning of WASH infrastructure for the refugee camps and transition to an integrated
water utility services model. This will include supporting coordination between refugee stakeholders and transition
monitoring. Capacity-building activities will also include training counties on climate-resilient and universal access design
and construction of water supply and sanitation infrastructure, standardizing WASH facilities for schools and HCFs
including meeting standards for disability and MHM-inclusive design standards, and launching a BCC campaign and
addressing the gender gaps in women’s employment in leadership positions.35 WASREB and Water Fund will receive
support to enhance their mandates in assisting WSPs to achieve regulatory and good governance compliance (including
WASREB and country-prescribed mechanisms for citizen engagement), developing high-quality PIAPs and bankable
projects for commercial financing, and leveraging private financing. The support for PIAPs will have a direct and positive
impact on the financial health of the service providers and ultimately their creditworthiness. The IPF will support sector
monitoring and reporting by funding a baseline survey of water points, development of a national water sector M&E
system, hiring of an independent verification agent (IVA) to verify Program results, and operational costs for managing
the Program. There will be ongoing refugee policy and regulatory support in the implementation of the WASH elements
of the Shirika Plan and coordination of the operation’s implementation with humanitarian WASH stakeholders led by DRS.

D. Program Development Objective(s) (PDO) and PDO Level Results Indicators

28. The PDO is to increase sustainable access to improved water and sanitation services, eliminate open defecation,
and improve the financial performance of water services providers in selected counties, including refugee hosting
counties.

PDO Level Results Indicators

29. The PDO indicators by outcomes are the following:

(a) Outcome 1: Increasing sustainable access to improved water services for households in climate-vulnerable
rural areas in selected counties, including refugees hosting counties:
(i) People provided with sustainable access to improved climate resilient water services under the
Program36 (Number, disaggregated by gender, refugees, and host community members)
(b) Outcome 2: Increased sustainable access to improved sanitation services and elimination of open defecation
in climate-vulnerable rural areas in selected counties, including refugee-hosting counties:

35 The GoK standards for schools are disability inclusive, but the project will support the GoK to fill gaps in disability inclusion in design standards for
HCFs and other public facilities under the Program.
36 Measured through DLI2: number of households provided with access to improved water services; and DLI3: number of sustainably functioning

water schemes.

Page 17 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

(i) People provided with sustainable access to improved sanitation services37 (Number, disaggregated by
gender, refugees, and host community members)
(ii) Villages that achieve and sustain open defecation free (ODF) status (Number)
(c) Outcome 3: Improved financial performance of Water Services Providers in participating counties:
(i) WSPs that achieve 100 percent of their Operating Cost Coverage Ratio (OCCR) target (Number) as per
their approved Performance Improvement Action Plans (PCE).

30. The estimated number of beneficiaries in the 19 counties under the Program is 4 million people, including 320,000
refugees and 400,000 host community members. This represents 33 percent of the population without access to improved
water and sanitation services nationally.

E. Disbursement Linked Indicators and Verification Protocols

31. The Program’s incentive model consists of 12 disbursement-linked Indicators (DLIs) grouped into five RAs across
five disbursement periods. Table 3 presents the DLIs under each of the proposed RAs and the financing amounts allocated
to each DLI. Further details, including eligible expenditures, activity descriptions, and verification procedures are provided
in annex 2.

Table 3. Description of DLIs under the Program

Disbursement Linked Allocation Description of DLI Comments on Related Activities
Indicator (US$,
millions)
RA 1: Increasing sustainable access to improved water services for households in climate-vulnerable rural areas (US$71.8
million)
DLI 1: Number of 19 Five-year CWSS&IP and its implementation Strategy will assess the county’s water
counties that have an roadmap are formally approved by the County resources to ensure proposed
approved County Executive Committee (CEC). The minimum structure developments of water supply
Water and Sanitation and contents of the CWSS&IP will be defined in the schemes are resilient to projected
Strategy and Program Operations Manual (POM). climate variability and change,
Investment Plan resulting in projected greenhouse gas
(CWSS&IP) (GHG) emissions reduction. The
investment plan and implementation
roadmap will guide both public and
private investments.

37Measured through DLI 4: number of households provided with access to improved sanitation services and DLI 5: number of villages achieving and
sustaining community-wide sanitation (CWS) status.

Page 18 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Disbursement Linked Allocation Description of DLI Comments on Related Activities

Indicator (US$,
millions)
DLI 2: Number of 32.8 Number of households provided with access to Design checklist will focus on climate
households provided improved water services out of water supply resilience and WASH+ approach.
with access to schemes developed under the Program: the Investments under DLI 2 are projected
improved water connections should come from a scheme that has to lead to GHG emissions reduction of
services technical design meeting the minimum design about 277,936 tCO2-eq per year for a
checklist as defined in the POM, including proof of total of 8,616,014 tCO2-eq over the
climate resilience; the household served is in an project’s economic lifetime with
unserved rural area; the water scheme complies respect to water supply activities.
with water quality standards issued by WASREB;
access is through either a metered connection,
shared yard tap, or water kiosk at a maximum of
500m from the household. New connections from
schemes rehabilitated under the program are
eligible.
DLI 3: Number of 20 Number of water schemes that are deemed Sustainability referring to
sustainably sustainable, meaning that (a) at least 90 percent of functionality, inclusive and
functioning water household services (metered or kiosk) are transparent tariffs, O&M cost
schemes functioning as per definition of functionality defined recovery, and a regulated service
in the POM, (b) water schemes have a tariff system, provider.
(c) water schemes achieve gradual O&M cost
recovery as defined in the POM, (d) water schemes
are operated by an approved service provider as per
WASREB regulations for rural areas as defined in the
POM, (e) leadership positions within the service
provider should not be more than two-thirds of the
same gender.
RA 2: Increasing sustainable access to improved sanitation services and elimination of open defecation in climate-vulnerable
rural areas (US$69.4 million)
DLI 4: Households 24.6 Number of households provided with access to an Design and construction criteria to
provided with access improved sanitation facility, meaning a facility at ensure disability accessible, MHM
to an improved household level that hygienically separates human friendly, and climate-resilient
sanitation facility waste from human contact. Options of improved sanitation facilities.
sanitation services will be defined in the POM.

Page 19 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Disbursement Linked Allocation Description of DLI Comments on Related Activities

Indicator (US$,
millions)
DLI 5: Number of 44.8 This DLI includes three disbursement-linked results The WASH facilities in public ECD and
villages achieving and (DLRs) to account for (a) DLR 5.1 - number of villages primary schools and HCFs will comply
sustaining that achieve ODF status, (b) DLR 5.2 - number of with the minimum standards set by
community-wide villages certified as achieving CWS status. The the Ministry of Health (MoH) and
sanitation (CWS) following requirement of CWS certification must be Ministry of Education (MoE), inclusive
status fully met: (i) village has been verified as achieving and climate resilient. The WASH
ODF status; (ii) at least 70 percent of households in facilities will also adhere to O&M
the village have access to an improved sanitation framework to be prepared under the
facility; (iii) all public ECD and primary schools within IPF. Sanitation activities covered
the village have improved school WASH facilities under DLIs 4 and 5 result in net
meeting minimum standards, (iv) all public HCF average annual emissions are –
within the village have access to improved WASH 243,375 tCO2-eq per year for a total of
facilities that meet minimum standards, and (v) –7,544,629 tCO2-eq over the project’s
fecal waste from the schools and HCFs are safely economic lifetime.
disposed. (c) DLR 5.3 - number of villages that
sustain CWS status.
RA 3: Improved financial performance of Water Services Providers in participating counties (US$43.8 million)
DLI 6: Number of 13.5 This DLI will be considered achieved when all the Achieving legal and regulatory
WSPs compliant with following five conditions are fully met: (a) have a requirements for good governance
the legal and valid WASREB license; (b) have a WASREB-approved and implementing the PIAPs are
regulatory justified tariff; (c) have a fully constituted Board of critical building blocks toward
requirements for Directors as per WASREB regulations, with achieving creditworthiness and an
good governance and leadership not being more than two-thirds of the enabling environment for attracting
have an approved same gender; (d) have a performance contract private sector financing. The PIAP will
PIAP between the WSP and the county government with have targets for energy efficiency,
clear KPIs38 and conditions for ring-fencing water demand management, NRW
autonomy of the WSP operations; and (e) have a reduction, resource efficiency, gender
Performance Improved Action Plan (PIAP) approved diversity, and community
by the Board of Directors to improve WSP engagement.
performance.
DLI 7: Number of 22.3 To be eligible for disbursement under this DLI, the Reduction in physical losses through
WSPs progressively WSP must show sustained full compliance with the metered areas, instalment of micro-
achieving their legal and regulatory requirements for good meters, and replacement of pipes and
Operating Cost governance defined in DLI 6. OCCR is selected as a inefficient pumps will lead to a
Coverage Ratio good aggregate measure for the successful significant reduction in energy and
(OCCR) targets as per implementation of the PIAPs. Yearly disbursements associated costs bringing NRW down
their approved will be made against progressive achievement of the from 51 percent to 30 percent by
Performance OCCR target stated in the PIAP. Each WSP will set an 2027. Gains from switching to solar-
Improvement Action OCCR target and disbursement under this DLI will be diesel power from 100 percent diesel
(PIAPs) scalable to the change made toward that target. similarly culminate in net emissions
reduction of 19,675.94 tCO2-eq. A
positive OCCR is a precursor to attract
private capital to the water sector.

38WSP responsibilities required by county contracts are based on WASREB and national policy. They include standards for community engagement
and client satisfaction monitoring and reporting through KPIs.

Page 20 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Disbursement Linked Allocation Description of DLI Comments on Related Activities

Indicator (US$,
millions)
DLI 8: Amount of 8 Disbursement will be triggered by the WSP securing Bankable project supported by this
financing leveraged a commercial loan deal to finance bankable projects DLI will fund interventions mentioned
by WSPs from included in the PIAP, contributing to improvements above in the WSP’s PIAPs to become
private/commercial in the OCCR. This DLI will provide 50 percent of total more cost efficient. This figure
financing sources bankable project cost, or 100 percent of the represents Private Capital
commercial loan secured. For example, for a Mobilization (PCM).
bankable project cost of US$100,000, commercial
loan should be US$50,000 and the DLI contribution
will be US$50,000.
RA 4: Improving sector reforms, coordination, and M&E Capacity for integrated water management (US$5 million)
DLI 9: Water sector 5 This DLI will include two DLRs: (a) DLR 9.1 for the Establishment of the
intergovernmental Approval and implementation of a Water Sector intergovernmental fiscal transfer
Planning, Performance-based Financing Mechanism to mechanism and effective
Coordination and facilitate intergovernmental fiscal transfers for intergovernmental coordination are
Monitoring reforms water services between the Ministry of Water, critical sector reforms necessary to
implemented Counties and WSPs and (b) DLR 9.2 for the improve enabling environment for
implementation of the Water Sector Inter- increasing public and private
Governmental Coordination Framework including investments for WSS.
annual joint M&E reporting by both levels of
government.
Result area 5: Improving integrated WASH services delivery for refugees and host communities (US$40 million)
DLI 10: Number of Disbursements will be triggered under two DLRs: (a) The design and construction of water
refugee and host DLR 10.1 - Number of households in the refugee schemes and sanitation facilities will
community camps, and in the host, communities provided with be based on a design checklist with a
households in access to improved water services under the focus on inclusive climate resilient
Refugee Hosting 20 Program designs and a WASH+ approach.
Counties provided (b) DLR 10.2 - Number of households in the refugee Designs and construction within
with improved access camps, and in the host, communities provided with refugee camps will be required to
to WASH services access to an improved sanitation facility. align the designs with the Shirika Plan
Same definition of access as in DLIs 2 and 4 to apply. and updated WSS design manual.
DLI 11: Number of 8 Disbursements to refugee hosting counties will be This DLI will primarily incentivize
sustainably triggered proportionate to the number of sustainable O&M of water schemes
functioning water sustainably functioning water schemes in both the for refugees and host communities
schemes in refugee- refugee camps and in host communities as defined constructed under the Program.
hosting counties in the POM. Same definition of sustainable schemes
used in DLI 3 applies with the addition that schemes
in refugee camps are operated as per DRS
regulations for the refugee camps.
DLI 12: Number of 12 This DLI includes three DLRs to account for (a) DLR Activities covered under DLIs 10 and
villages in the 12.1 - number of villages that achieve ODF status, 12, along with DLIs 4 and 5 result in
refugee camps, and (b) DLR 12.2 - number of villages certified as net average annual emissions are –
in the host achieving CWS status, and (c) DLR 12.3 - number of 243,375 (–277,936) tCO2-eq per year
communities villages that sustain CWS status. Same definition for a total of –7,544,629 (–8,616,014)
certified as achieving used in DLI 5 will apply under these DLRs. tCO2-eq over the operation’s
and sustaining CWS economic lifetime.
status

Page 21 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

32. Verification of DLIs will be carried out by the IVA hired by the SDWS. The results reported by the SDWS (Results
Report), as achieved under the Program, will be verified through a paper audit, physical inspection, and phone calls that
test the accuracy and quality of results claimed. In accordance with good audit practice, physical verification will take place
against a sampling framework. The IVA will prepare a Results Verification Report (RVR), which will be shared with the
SDWS and the World Bank. The RVR will be used to determine the amount of the eligible disbursement to be made based
on the results achieved. Further details on the verification process for each DLI are included in Annex 2.

III. PROGRAM IMPLEMENTATION

A. Institutional and Implementation Arrangements

33. Program implementing agencies.39 The primary implementing agencies under the Program are as follows:

(a) The MoWSI, through the State Department of Water Sanitation and Sewerage Development, will have
overall accountability for Program delivery. A dedicated Program Management Unit (PMU) headed by a
program coordinator will be set up by the SDWS. The PMU will include a program accountant, procurement
officer, an internal auditor, an M&E officer, a social development specialist, an environmental specialist, and
a communications’ specialist. The PMU will provide technical coordination, capacity building, and
backstopping support and undertake activities leading to the national levels results in DLI 9 under RA 4. The
SDWS will also engage the IVA to undertake results verification under the Program.
(b) The county governments, through their water departments, will be the main implementing agencies for
activities under RA 1, RA 2, and RA 5. Each participating county government will establish a dedicated
Program Implementation Unit (PIU) under the County Water Department to lead implementation of all
county-level activities. The PIU will be headed by a fulltime program coordinator and will include staff from
the County Department of Health and Department of Education among other staff.
(c) The WSPs will be the main implementing agencies for RA 3 within their areas of licensed service coverage.
The WSPs will undertake the eligible program of expenditures leading to the results envisioned in RA 3.
(d) Special PIUs will be formed for implementation of WASH activities in the refugee camps in Turkana and
Garissa Counties under RA 5. These PIUs will be chaired by the respective Refugee Camp Manager and co-
chaired by the respective County Chief Officer in-charge of Water. The PIUs’ composition will include staff
from each county, the respective WWDA, and the DRS. The special PIUs will coordinate closely with the
UNHCR, through the DRS, and with the main county PIUs.
(e) The Water Fund will provide TA to the WSPs in the preparation of bankable projects for commercial financing
and to facilitate the disbursement of funds directly to WSPs for the results achieved under RA 3.
34. Participating entities. Other key entities participating in the Program in collaboration with the implementing
agencies include the DRS to coordinate and provide oversight of all refugee camp activities; Ministry of Health (Public
Health Department) to coordinate the sanitation activities with the counties including the BCC campaign, WASH in HCFs
and technical and capacity-building support to counties; MoE to coordinate with the counties on the WASH in schools’
activities; WASREB to provide technical support to counties and WSPs to ensure regulatory compliance and
implementation of O&M service delivery models and WSP PIAPs. The Council of Governors and State Department of

39
Further details on the implementation arrangements, the role of each entity and oversight mandates will be defined in the Program Operation
Manual (POM).

Page 22 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Devolution will both work with the SDWS in coordinating with county governments and DRS, and under it, with UNHCR,
to support coordination of refugee WASH stakeholders. As needed, WWDAs may extend TA and capacity building to
county governments and WSPs. Each of these entities will appoint a focal point who will coordinate with the PMU in the
implementation of the Program.

35. The Program will have a Program Steering Committee (PSC) and a Program Technical Committee (PTC). The PSC
will provide policy guidance, oversight, and strategic direction including inter-ministries, departments, and agencies
(MDAs) coordination and conflict arbitration. The PSC will meet at least biannually and as and when required and will be
responsible for endorsing the Annual Performance Assessment (APA) results. The PTC will deliberate and prepare motions
for decision-making by the PSC. The PTC will meet at least quarterly and as and when required, to review Program
implementation progress and financial accountability reports, review and verify APA reports, identify, and address any
emerging technical issues and challenges in implementation of the operation. Further, the PTC will advise the PSC on policy
and strategic issues. The composition of the PSC and PTC and their terms of reference will be detailed in the POM.

36. A POM will be prepared as an effectiveness condition and will include (a) the activities and timetable of actions to
be carried out under the Program and excluded activities; (b) the respective roles and responsibilities of entities
participating in the Program; (c) the composition and responsibilities of the PMU and the county PIUs; (d) the fiduciary,
technical, and operational aspects and procedures for implementation of the Program, including the financial
management (FM) procedures; (e) the procedures for distribution of IDA credit proceeds to the 19 participating counties
and to the WSPs; (f) the verification protocols for the DLIs and DLRs; and (g) the anti-corruption guidelines.

B. Results Monitoring and Evaluation

37. The SDWS will retain overall responsibility for Program results M&E. Results reporting and verification will be
conducted on an annual cycle linked to the national planning and budgeting process. Each county PIU will produce and
submit to the SDWS PMU a quarterly Program Results Monitoring Report. The SDWS will compile a combined results
report for all the 19 participating counties and their WSPs before the start of each verification period, summarizing the
progress in achieving results up to the verification date. The reports will be submitted to the IVA as the starting document
to work with before conducting the actual verification as per the verification protocol defined in the POM. A template of
the quarterly Program Monitoring Report will be included in the POM. The Program will adopt the approach and tools
developed by the Geo-Enabling Initiative for Monitoring and Supervision (GEMS) to collect and track achievement of
results. Use of the GEMS tools and a dedicated K-WASH M&E dashboard established by the SDWS to display the Program
data will enhance the transparency and accountability of the Program. Several of the results indicators under the Program
will be disaggregated by gender (Annex 1). These indicators measure progress toward reducing important gender gaps
that could affect program outcomes if not addressed. These data will facilitate gender-inclusive planning and management
of the Program. The PMU will submit semiannual progress reports, a midterm review report, and a completion report for
the Program to the World Bank.

C. Disbursement Arrangements

38. Disbursements will be triggered by the achievement of DLI-related results for the Program and verified by the
IVA. The IVA will compile an RVR and share it with the SDWS PMU and World Bank. The SDWS will submit a withdrawal
application to the World Bank upon notification of the formal approval of the verification report by the World Bank. The
following is how IDA funds will be distributed: for RAs 1, 2, and 5 funds will be disbursed directly from the National Treasury
(NT) to the County Revenue Fund upon the SDWS’s request to NT, accompanied by an RVR; for RA 3, the Water Fund,

Page 23 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

which manages the WSPs’ performance enhancement window, will receive funds from the NT, through the SDWS, then
disburse to WSPs; and for RA 4, the NT will disburse funds to the SDWS based on the RVR.

D. Capacity Building

39. Through the IPF component, the SDWS PMU will coordinate TA and a program of capacity-building activities for
the implementing agencies. The IPF component will provide technical assistance and training to the implementing
agencies to support them in addressing gaps identified in the technical, fiduciary, and environmental and social systems
assessments, and in overall program management. It will also support the achievement of actions outlined in the Program
Action Plan (PAP).

IV. ASSESSMENT SUMMARY

A. Technical (including program economic evaluation)

40. NAWASIP is a strategic relevant program playing a key role in supporting Kenya’s sustainable development and
boosting its human capital. In assessing its technical soundness, a key element that requires strengthening is the
sustainability of investments in the sector. Ensuring equity of growth in Kenya will require a sustained focus on reducing
rural poverty, and thus the strategic relevance of improving sustainable access to water and sanitation and WSP
performance is high.

41. Kenya already has a well-tested model for expanding the coverage of household sanitation in rural areas, where
the core strategy utilizes CLTS to eradicate OD. However, challenges include (a) inadequate funding for tackling OD, (b)
slippage in maintaining ODF status, (c) collapsing latrine pits, and (d) inadequate marketing of sanitation products. The
rural sector also lacks safe options for managing fecal sludge. Thus, the Program incentivizes achieving and sustaining the
ODF gains and improving the supply and installation of quality, aspirational, and affordable improved sanitation products
and facilities, as well as safe fecal sludge management.

42. The rural water sector challenges identified in the technical assessment, which includes refugees, are well
addressed by the Program design. These include low access to improved water supply and sustainability issues due to a
lack of appropriate management models, weak governance and accountability, and poor-quality construction. The
assessment recommends paying special attention to the potential vulnerability of water resources to local hydrological
variability, exacerbated through climate change, requiring adaptation and mitigation strategies. WSPs require support to
improve operational efficiencies and incentives to strengthen governance and regulation. Incorporation of multiple water
use requires TA on designs, water quality, water bylaws, multiple-use governance, and O&M to be integrated in WSS
design standards.

43. Public schools and HCFs lack sufficient clean water, and sanitation facilities are often unsegregated with
insufficient drop holes and no MHM provision40 or accessibility for people with disabilities. Handwashing facilities with
soap and water are often lacking and hygiene behaviors are poor. There are no national-level standard designs for WASH
facilities at HCFs, and construction quality is an issue at both schools and HCFs. The Program will incentivize constructing
quality standardized WASH facilities with gender sensitivity and/ or accessibility for people with disabilities and ensuring
suitable MHM arrangements and effective hygiene behavior change that also reaches refugees and host communities.

40 World Bank. 2021. Menstrual Health and Hygiene Resource Package.

Page 24 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

44. Implementation of NAWASIP will be accompanied by institutional and policy reform programs to ensure that
universal access to WSS is achieved and sustained, as infrastructure alone is insufficient to achieve NAWASIP's goals.
The operation will collectively incentivize addressing persistent institutional constraints by incorporating national and
county-level reforms as criteria for achieving Program disbursements. A national integrated M&E system and Results
Framework will be established by the SDWS for monitoring and reporting of the national program. The project will provide
M&E capacity to the PMU and counties, including an M&E expert in the PMU at the SDWS to support both the PMU and
the counties. Technical recommendations are provided in the Technical Assessment report.

Program Expenditure Framework

45. The Program Expenditure Framework identifies expenditure categories and activities included in NAWASIP,
within the boundaries of this Program amounting to US$438 million for the PforR. Eligible expenditures are compatible
with the description of RAs, and the Technical Assessment included an exercise to review such expenditures and update
them with information provided by all implementing agencies at ministerial and county level. Details of budget
classification structure have been reviewed, to ensure that expenditure categories have codes that allow tracking of
Program expenditures during Program implementation and at closure. The summary Program Expenditure Framework is
shown in Table 4 below.

Table 4: Summary Program Expenditures

Program Expenditure Category Total Allocation (capex and opex)
K Sh US$
RA 1: Increasing sustainable access to improved water services for 24,098,325,341 165,057,023
households in climate vulnerable rural areas
RA 2: Increased access to improved sanitation services, & elimination of 16,766,864,982 114,841,541
OD in climate vulnerable rural areas
RA 3: Improved operational & financial performance of Water Service 13,716,236,787 93,946,827
Providers in participating counties
RA 4: Improving Sector reforms coordination & M&E Capacity for 876,000,000 6,000,000
integrated water management
RA 5: Improving integrated WASH services for refugee hosting counties 8,490,572,890 58,154,609
TOTAL COST OF PROGRAM 62,780,000,000 438,000,000
Program economic Evaluation

46. The Program economic and financial analyses evaluate the economic and financial impact of improvements in
water supply and sanitation improvement in the 19 participating counties. A cost-benefit analysis (CBA) was undertaken
to estimate the economic and financial feasibility based on information provided by eight selected WSPs and by WASREB
and its reports, as well as data from national household surveys. A six percent discount rate has been used.The CBA results
shows an Internal Rate of Return (IRR) between 20 and 2 percent and a Net Present value (NPV) between US$2,189 and
US$2,947 million depending on the shadow price of carbon adopted. Water benefits are significantly higher compared
to the sanitation benefits.41 Economic benefits include improvements in water supply systems and beneficial (including
productive) use and decreases in NRW. The rehabilitation and expansion of water supply and sanitation/wastewater
systems will have a positive impact on the incidence of waterborne-related diseases, primarily diarrhea (direct and

41The economic NPV for water systems ranges from US$2,095 to US$2,507 million depending on the shadow price of carbon rate used, with the
IRR ranging from 75 to 94 percent, while sanitation benefits range from US$131 million to US$ 498 million and the IRR ranges from 7 to 10 percent.

Page 25 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

indirect), nutrition, and household small productive activities. Diarrheal disease is transmitted chiefly through the fecal-
oral route. An estimated 94 percent of the diarrheal burden of disease is attributable to the environment, linked to unsafe
drinking water, poor sanitation, and hygiene. Direct savings are related to reduction of diarrhea incidence (in 2023, 21.3
percent of Kenyan children under five years reported diarrhea). Based on the World Health Organization global estimates,
the Program is expected to reduce diarrhea incidence in selected counties by 5 percent per year from 21.3 percent to 16
percent a year. The Program will reduce GHG emissions through strategic investment into WSS provision, with the most
GHG emission reductions expected from reduced use of charcoal due to improved water quality, conversion of wet latrines
into emptiable latrines, investment into solar pumping, and reduction of losses and NRW. The water supply activities yield
net average annual emissions of –277,936 tCO2-eq per year for a total of –8,616,014 tCO2-eq over the project’s economic
lifetime. For the sanitation activities, the net average annual emissions are –243,375 tCO2-eq per year for a total of –
7,544,629 tCO2-eq over the project’s economic lifetime. Thus, the Program will contribute to 31 percent reduction in
carbon emissions compared to the baseline estimated at 16.2 million tCO2e over the 30 years analysis period or 540,768
tCO2e annually.

Table 5. Project GHG Accounting

GHG Accounting Water Wastewater Total
tCO2e tCO2e tCO2e
Baseline 24,219,667 28,206,402 52,426,069
With Program 15,583,977 20,619,066 36,203,043
Net reduction (8,635,690) (7,587,336) (16,223,026)
Annual reduction (287,856) (252,911) (540,768)
Percent reduction, % 36 27 31

Paris Alignment

47. The Program is aligned with the goals of the Paris Agreement on both mitigation and adaptation. The Program
is consistent with Kenya’s updated first Nationally Determined Contribution (submitted to the United Nations Framework
Convention on Climate Change (UNFCC) in 2020), Kenya National Adaptation Plan (KNAP, 2015–2030), and with Kenya
Vision 2030—its long-term development blueprint. The Program is designed to build rural communities’ resilience to local
climate risks and support the federal and county government’s joint efforts to make water supply and sanitation schemes
more resilient to climate change and less emissive. All activities envisaged under the Program are on the Universally (Paris)
Aligned sanitation objectives of KNAP, 2015–2030, by mainstreaming disaster risk reduction into water sector planning,
promoting efficient water resource technologies, and enhancing capacity of institutions responsible for water and
sanitation.

48. Assessment and reduction of adaptation risks. The technical assessment revealed that the Program is aligned
with the Paris Agreement, as it promotes reduction of GHG emissions and provision of solutions for adaptation and climate
resilience. The Program area faces high exposure to climate risks, with the main climate and disaster risks affecting the
project being droughts and floods. Increased climate risks will raise pressure on limited rural water resources, and
population movements may increase strain on infrastructure. Extreme flooding and sea-level rise could also increase risks
both to water production and sanitation facilities. These climate change-related risks are reduced by the Program design
through upgrading critical water and sanitation infrastructure and proactively reducing risks through soft components.
Adaptation-related activities include (a) improved watershed management and switching rural villages from ephemeral
to permanent water sources—thereby increasing water security; (b) reducing NRW through rehabilitation and
construction of climate-resilient infrastructure and increasing the water available for end users; (c) strengthening the
county government and WSP institutional capacity to respond to climate shocks and increase reliability of services offered

Page 26 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

by WSP;42 and (d) designing climate-resilient sanitation infrastructure to increase access and improving reliability of
sanitation services in households, public schools, and HCFs, thereby improving public health outcomes in the program
area. Improving WSPs’ performance will allow them to continue investing in climate-resilient infrastructure and their
maintenance, thus contributing to sustainable service delivery. As a result, climate risks will be reduced to an acceptable
level and will not have a material impact on the program achieving its development objectives.

49. Assessment and reduction of mitigation risks. The operation is not at material risk of having a negative impact
on the country’s low-GHG emissions development pathways. A reduction of GHG emissions will be derived from both
water supply and sanitation interventions. Mitigation-related activities center on (a) reducing the use of charcoal for
boiling water, (b) reducing untreated or partially treated wastewater discharged into rivers, (c) improving fecal sludge
management (mainly collection and transport) and public facilities (schools and hospitals), and (d) reducing energy
consumption by improving energy efficiency and utilization of solar pumps. The largest GHG emission reduction is
expected from the reduced use of charcoal and conversion of wet latrines to emptiable latrines, followed by reduction of
NRW and employment of solar pumping. In addition, improving the operational and financial performance of WSPs will
allow them to continue investing in energy efficiency enhancements in both water and wastewater, thereby further
reducing GHG emissions.

B. Fiduciary

50. A Fiduciary System Assessment (FSA) was conducted on the Program based on the World Bank’s Program-for-
Results Fiduciary Systems Assessment Guidance Notes of March 8, 2022. The assessment revealed that the procurement
and FM systems capacity and performance are adequate to provide reasonable assurance that the Program funds will be
used for the intended purposes with due attention to the principles of economy, efficiency, effectiveness, transparency,
and accountability. A detailed standalone FSA has been prepared clarifying the risk and mitigating measures. High-value
contracts involving procurement of goods, works, and services whose estimated values exceed the applicable Operations
Procurement Review Committee thresholds set out in the World Bank procurement procedures shall be excluded from
the Program.

51. The Program benefits from well-established public financial management (PFM) and procurement legal
frameworks and systems but is prone to fiduciary risks that are assessed as substantial. Despite the various progress
noted in the overall PFM framework, the Program is exposed to risks associated with gaps noted in FM, procurement, and
management of fraud and corruption including inadequate budget; missing budget codes for program budget and
expenditure tracking and reporting; delays in disbursement of funds leading to pending bills and delayed procurements;
recurring audit opinion especially on WSPs; limited number of internal audit staff in most entities and high
turnover/transfer of staff; lack of accounting and billing systems in some of the WSPs; inadequate disclosure of
procurement-related documents; lack of contract management and tracking arrangements; and gaps in procurement-
related handling mechanisms. Furthermore, the reporting arrangements for fraud and corruption and coordination among
the various stakeholders will require further strengthening.

52. The Program has mechanisms in place to mitigate the identified risks using DLIs, the PAP, and the POM. The
Program will benefit from the reform supporting operations that the World Bank has in the PFM sector. In addition, the
DLIs aim to address the institutional challenges that the implementing entities face. Additional PAP measures have been
proposed to strengthen the current system, including accounting and financial recording system for the WSPs; monitoring

42World Bank. 2018. Building the Resilience of WSS Utilities to Climate Change and Other Threats: A Road Map. Washington, DC: World Bank
Group; World Bank. 2020. Resilient Water Infrastructure Design Brief. Washington, DC. World Bank Group.

Page 27 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

timeliness of county audit reports; publication of procurement-related documents; development of procurement-related

complaint handling mechanisms; development and implementation of procurement and contract management
monitoring and tracking arrangements; and capacity-building initiatives for FM, procurement, and the Commission on
Administrative Justice (CAJ). To ensure proper reporting of fraud and corruption complaints as indicated in the World
Bank’s anti-corruption guidelines,43 both the CAJ and the Ethics and Anti-Corruption Commission will undertake annual
certification of the implementing agencies and the process will be monitored and reported on by the PMU as defined in
PAP. The use of debarred firms will be monitored regularly during the preliminary Evaluation of the Tenders from the
World Bank website: http://www.worldbank.org/debar.

53. The FM residual risk for the operation is substantial, with country-level fiduciary systems having strengths and
weaknesses. The Government has implemented reforms, such as the 2012 PFM Law, Integrated Financial Management
and Information System, Treasury Single Account, International Public Sector Accounting Standards, and Office of the
Auditor General, to enhance accountability, transparency, and cash management. The assessment identified significant
fiduciary risks at the MoWSI, including delays in exchequer releases, delayed development activities, variances in financial
statements, unreported bills, inconsistent project budgeting, and unresolved prior year matters. The internal audit
committee was not fully constituted, and external audit reports for 2021/2022 were not submitted nine months after the
financial year's end.

54. The MoWSI will implement a Financial Management Action Plan to mitigate risks in K-WASH, as it will have the
fiduciary responsibility. It will establish a separate IDA budget code, open a Designated Account, designate a project
accountant and internal auditor, conduct annual risk-based fiduciary reviews, and document FM procedures. A designated
accountant will be the focal point at the Water Fund and WASREB. Overall, the FSA shows that the FM arrangements meet
World Bank's minimum requirements, providing accurate and timely project status information. Financial reporting and
audit arrangements are captured under the Disbursement and Financial Information Letter and the FM Manual will
capture the detailed FM arrangements.

C. Environmental and Social

55. The Environmental and Social System Assessment (ESSA) assessed the Program’s E&S features, including (a) the
adequacy of the country system to manage the Environmental, Social, Health, and Safety (ESHS) risks and impacts; (b) the
system as written and as practiced; (c) E&S compliance monitoring, reporting, and feedback; and (d) the existence and
effectiveness of the grievance redress mechanism (GRM). Potential E&S risks are linked to civil works subprojects under
RAs 1, 2, and 5. They include vegetation clearing; generation and unsafe disposal of construction waste and septage
effluents; soil and water pollution; increased demand for water for construction; traffic congestion, obstruction of access,
roads/paths and increased road accidents; community and occupation health and safety incidents; soil and water
pollution; disruption of existing infrastructure or services; land/wayleave acquisition without compensation; physical and
economic displacement; loss of livelihoods; labor influx; sexual exploitation and abuse and sexual harassment; elite
capture/political interference; exclusion of vulnerable and marginalized groups and other vulnerable individuals and
groups from Program benefits; use of forced and child labor; inadequate stakeholder engagement and information
disclosure; social conflict over scarce resources in arid and semi-arid lands counties; conflict between refugees and host
communities; ineffective management of labor risks; ineffective/inadequate/inaccessible GRM; weak E&S capacity of
implementing agencies; and institutional E&S gaps identified in the ESSA.

43 The World Bank (2011). Guidelines on Preventing and Combating Fraud and Corruption in Program-for-Results Financing

Page 28 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

56. The ESSA found that the country has robust legal, regulatory, and institutional frameworks consistent with the
Program’s ESHS Core Principles at the national level, and if applied as written, the system can effectively manage the
ESHS effects. However, social risk management (SRM) functions are fragmented across various MDAs without
coordination mechanisms. Counties have environment, climate, and natural resource management departments but their
functions are unstructured, with no oversight roles over other departments. There is low commitment to SRM at the
national and county levels, both of which have inadequate E&S human and financial resources. Other challenges include
limited understanding of E&S frameworks, shortage of skilled staff, weak grievance management, exclusion of vulnerable
and marginalized groups, inadequate stakeholder engagement, and inadequate legislative frameworks for SRM and
monitoring and reporting on E&S performance.

57. To mitigate the Program ESHS risks, the exclusion principles in PforR programs are applied and mitigation
measures included in the PAP. High-risk investments with significant adverse impacts on the environment or people, for
example, large dams or resettlements affecting over 200 people, are not financed under K-WASH. Enhancing the
Program’s ESHS risk management involves integrating the following measures into the PAP: (a) actions to strengthen
environmental, health, and social systems, including adequate human and financial resources; (b) actions to strengthen
environmental, health, and SRM practice and monitoring; and (c) actions to build the capacity of implementation staff.

58. The IPF component will finance activities related to TA, capacity building, and supporting Program operational
coordination, mainly at the SDWS, Water Fund, and other MDAs that will be participating in the Program. In line with
the Environmental and Social Framework requirements, the GoK has prepared an Environmental and Social Commitment
Plan, Stakeholder Engagement Plan, and Labor Management Procedures to manage E&S risks associated with this
component. Consultations were carried out in Nairobi on April 11, 2023, for national level stakeholders, and in Kirinyaga,
Kitui, Kericho, and Baringo counties between April 12 - 19, 2023, targeting county level stakeholders where counties were
grouped in geographical clusters. Additional consultations were held with county level stakeholders on October 5, 2023,
to review and concur with the draft instruments. All the E&S documents were disclosed by the GoK on October 13, 202344
and on the World Bank’s external website on October 23, 2023.

59. OP 7.50 for Projects on International Waterways. OP 7.50 is applicable to the Program as some of the proposed
interventions may impact water resources of the Kilimanjaro, Dawa, Rift and Sudd transboundary aquifers; and the Juba,
Logatipi Swamp, Lake Natron, Lake Turkana, and Nile River systems. These are considered as international waterways
according to the Policy. The Bank, on behalf of the GoK, notified the other riparian countries (Burundi, DRC, Egypt, Eritrea,
Ethiopia, Rwanda, South Sudan, Sudan, Somalia, Tanzania, and Uganda) and informed the Nile Basin Initiative and the
Lake Victoria Basin Commission of the proposed Program. As of November 24, 2023, which was the latest deadline set out
in the notification letters sent to the riparian countries to respond on the Program, no responses have been received.
Based on the outcome of the notification process and the assessment that the operation will not cause appreciable harm,
RVP clearance was given to proceed with preparation of the operation.

60. Grievance Management (GM). There will be two levels of project grievance management: at national and at
county level. At county level, the first responsibility for addressing grievances will be by the sub-county technical teams
who can then escalate to the county grievance management committee, whose work will be coordinated by the County
PIU. At the national level, a national grievance management committee will be established, and its work will be

44http://www.water.go.ke/wp-content/uploads/2023/10/Final-ESCP-K-WASH_16102023.pdf; http://www.water.go.ke/wp-
content/uploads/2023/10/Final-ESSA-Report-for-WASH-P179012-Aug-31st.pdf; http://www.water.go.ke/wp-content/uploads/2023/10/Final-
Labour-Management-Procedure-K-WASH-P179012-111023.pdf; http://www.water.go.ke/wp-content/uploads/2023/10/Stakeholder-Engagement-
Plan-SEP-for-K-WASH-P179012-111023.pdf

Page 29 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

coordinated by the national PMU. The PMU will have a GM expert who will handle all the grievances at the national level
as well as those escalated by the counties. Should a grievance not be resolved by the county and national level project
mechanisms, the aggrieved party will be free to seek redress from other grievance handling mechanisms including the
judicial system, the Bank’s Grievance Redress Services (GRS) or the Bank’s Accountability Mechanism.

D. Private Capital Facilitation, Gender, and Citizen Engagement

61. Private Capital Facilitation. The Program reflects the World Bank’s mobilizing finance for development strategy,
promotes PCM and is private capital enabled (PCE). A total of US$8 million PCM out of commercial loans for WSPs is
expected to be leveraged under DLI 8. Collectively, the achievement of indicators from DLIs 1, 3, 6, and 7 on improving
WSPs’ operating performance and sustainability are removing the binding constraints to enable sustainable private sector
solutions over the project duration. These are aligned with the approved County Water and Sanitation Investment Plans
that include roadmaps for sustainable private sector solutions. For the PCE indicator, at the Implementation Completion
and Results Report stage, the number of WSPs achieving OCCR targets will be reviewed if additional commercial loans are
accessed, for example, US$10 million, which is the balance of the US$18 million, net of US$8 million PCM, projected by
the Water Fund, through a market study, as potential commercial loans that can be leveraged by the participating WSPs.

62. Gender Equality. A baseline survey of WSPs identified key gender gaps in women’s employment in leadership
positions for most of the Program’s WSPs. Numerous factors contribute to this gender gap including entrenched gender
norms that deter women from applying to leadership positions and entering technical fields, lower rates of promotion,
and weak or opposing incentives for hiring and promoting women.45 The baseline for women in leadership positions in
the Program’s WSPs range from 0 to 55 percent.46 National policies require that no more than two-thirds of either gender
occupy leadership positions in WSPs and DLI 3 includes this criteria to achieve a qualifiable “Number of households with
access to a sustainably functioning water point.” DLI 6 will incentivize hiring and promoting women in WSPs through
implementation of the PIAP. The intermediate results indicator, “WSPs with at least one-third share of women in
leadership positions,” will directly measure the share of women in leadership positions. Improved gender diversity and
representation is predicted to improve WSP efficiency and productivity, leading to more sustainable services. The Program
will also address gender gaps that are in the purview of the MoWSI at public schools and health facilities.47 Poor WASH
access is a significant barrier preventing Kenyan girls from attending and completing school.48 With the United Nations
Children’s Fund (UNICEF), the GoK has established standards for women’s and girls’ sanitation facilities in schools,49 which
the Program incorporates as criteria for CWS (DLIs 4 and 5), such as lockable latrine doors, functional lights in facilities,
and so on. Meeting these criteria will be monitored with intermediate results indicators. The IPF component will further
support development of universal access standards for WASH facilities in HCFs.50

63. Citizen Engagement (CE). The Program will have a beneficiary-oriented design. A Program-level analysis has
identified stakeholders affected by the Program or whose participation can affect outcomes. The Program will support
implementation and monitoring, including support to establish citizen’s feedback and consultation with WSPs and

45 Ochieng, Christine. 2020. “Unlocking Women’s Potential in Kenya’s Water and Sanitation Sector.” World Bank Blog, July 8, 2020.
https://blogs.worldbank.org/water/unlocking-womens-potential-kenyas-water-and-sanitation-sector.
46 These numbers reflect the data collected for 17 of 31 WSPs, which were the responders at the time of writing the PAD.
47 Ministry of Health 2019 –2030. Menstrual Hygiene Management Policy. Refer to paragraph 36 of this PAD for arrangements.
48 World Bank. 2022. The Enabling Environment for Menstrual Health and Hygiene: Case Study – Kenya. Washington, DC: World Bank.
49 Ministry of Education, Ministry of Health, and Ministry of Water and Irrigation. 2017. Standards and Guidelines for WASH Infrastructure in Pre-

Primary and Primary Schools in Kenya. UNICEF - Kenya.

50 In addition to the standards cited above, disabilities-inclusive sanitation facilities are contained in the GoK (2016) Kenya Environmental Sanitation

and Hygiene Policy 2016–2030. Ministry of Health and the GoK (2016) Kenya Environmental Sanitation and Hygiene Strategic Framework (KESSF)
2016–2020. These standards will also be met in public facilities under the Program.

Page 30 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

counties, and WSP GRSs. WSPs are already required to facilitate community engagement at multiple levels (according to
both WASREB license and county contracts) but there is wide variability in the extent to which it is occurring. WSPs will be
incentivized to implement community engagement mechanisms specified by county contracts and measured by WASREB
KPIs as a criterion of DLI 6 (Number of WSPs compliant with the legal and regulatory requirements for good governance
and have an approved PIAP). Particular attention will be given to complaint resolution mechanisms and efficiency. An
intermediate result indicator will broadly implement iterative beneficiary monitoring (WSP customers satisfied with their
water supply services). The Program will also support community-led BCC through the CLTS approach to assist
communities to achieve ODF status.

V. GRIEVANCE REDRESS SERVICE

64. Grievance Redress. Communities and individuals who believe that they are adversely affected as a result of a Bank
supported PforR operation, as defined by the applicable policy and procedures, may submit complaints to the existing
program grievance mechanism or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received
are promptly reviewed in order to address pertinent concerns. Project affected communities and individuals may submit
their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which
determines whether harm occurred, or could occur, as a result of Bank non-compliance with its policies and
procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to
address complaints through dispute resolution. Complaints may be submitted at any time after concerns have been
brought directly to the Bank's attention, and Bank Management has been given an opportunity to respond. For
information on how to http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s
Accountability Mechanism, please visit https://accountability.worldbank.org.

VI. KEY RISKS

65. The overall risk rating of the operation is Substantial. The main risks and mitigation measures are summarized in
the following paragraphs.

66. Political and governance risks are rated Substantial. While water is a key priority both at the national and county
government levels, water sector intergovernmental relations remain weak. The Program’s coverage of only 19 out of 47
counties could raise some tensions among counties and between the national and county governments including where
refugee hosting counties have been prioritized. Additionally, if investments from NAWASIP do not materialize due to
resource challenges, it may create local political tensions. These risks will be mitigated through continuous engagement
with the leaders at both levels of government to ensure sector gains are sustained. In addition, the Program will incentivize
operationalization of the intergovernmental coordination mechanism through DLI 9. The IPF component will be used to
support policy dialogue including on refugee issues.

67. Macroeconomic risks are rated Substantial. Rising inflation and tighter global financial conditions have resulted
in sharp increases in cost of food and fuel, leading to increased price of commodities. Recurrent droughts have serious
impact on food security and livelihoods, necessitating need for government intervention. This increases the risk of
insufficient government budget allocation for the sector. However, the Program is a top government priority given that
the Program activities will help improve livelihoods and resilience of rural communities. In addition, the World Bank is
undertaking high-level engagement with the GoK to ensure adequate budget allocation to the water sector, including
through the Africa East Regional WASH Scale-up Strategy where attention will be given on adequate allocation of finance
to the water sector.

Page 31 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

68. The technical design of the Program risk is rated Substantial. The technical assessment has highlighted several
technical challenges in the sector, including lack of sufficient funds allocated to achieving and sustaining ODF gains; poor
WASH access in schools and HCFs; inadequate arrangements for the safe collection, transport, treatment and disposal/re-
use of fecal sludge; inefficient WSPs with poor financial performance; weak arrangements for the sustainable management
of rural water supply services, including O&M of infrastructure; weak enabling environment, including on sector policy,
planning, coordination and M&E; and lack of involvement of the private sector in service delivery among others. The
Program is designed to mitigate these technical risks through the incentives built into the DLIs. DLIs 3, 5, 11, and 12 will
be used to incentivize sustaining the gains such as achieving ODF and ensuring that water points remain functional.
Targeted TA will be provided through the IPF to support the achievement of the DLIs, such as technical support for WSPs
to improve operational performance and creditworthiness.

69. Institutional capacity for implementation and sustainability risks are rated Substantial. As this the first PforR for
the sector, there is a general lack of experience in implementing results-based programs. While counties are gaining
experience in implementing World Bank-financed projects, County Water Departments and their WSPs have limited
experience and high staff turnover further affects implementation capacity. The TA package is set up to support the
national government and counties in carrying out activities related to improved planning, staff and systems capacity
strengthening, and sustainability.

70. Fiduciary risks are rated Substantial. There is a persistent funds’ flow challenge from national to county
governments that has negatively affected county-implemented programs. Additionally, lessons from ongoing PforRs in
Kenya show that the monetary incentives are not always correctly transferred from central to local governments. There
is a risk that county-level departments and WSPs may not receive project funds, irrespective of their performance. The
Program will learn from existing PforR operations in Kenya and the region, work closely with the NT, and specify in the
PAP the rules and procedures that govern the flow of Program funds.

71. Environment and Social risks are rated Substantial. The E&S risks are related to civil works subprojects under RAs
1, 2, and 5. These could include soil and water pollution; poor waste management; traffic and other health safety incidents
and accidents; land/wayleave acquisition without compensation; physical and economic displacement and loss of
livelihoods; labor influx and exclusion of some groups from stakeholder consultations or program benefits; sexual
exploitation and abuse and sexual harassment; inadequate stakeholder engagement and information disclosure; potential
social conflict, especially between refugees and host communities; inadequate, ineffective, or inaccessible grievance
redress and feedback mechanisms, especially for refugees; weak E&S capacity of the PMU and PIUs; and the E&S gaps
identified in the institutions responsible for managing ESHS risks in the country. To mitigate such risks, the Program will
exclude high risks subprojects; develop an ESHS manual to guide screening and management of E&S risks; integrate
institutions with mandate for E&S risk management early into Program activities; ensure that E&S risk management
strategies are incorporated at an early stage in the planning process; allocate adequately skilled and experienced E&S staff
and financial resources for implementing E&S risk management; involve DRS and the UNHCR in host community and
refugee areas and ensure the operation GRM is practical and can effectively mitigate any conflicts among refugees and
between refugees and host communities; and undertake capacity building of the PMU and PIUs on E&S risk management
and monitoring.

72. Other risks are rated Substantial. While offering a range of benefits to refugee protection in Kenya, the Refugees
Act of 2021 contains elements that are not fully compliant with the relevant provisions of the 1951 Refugee Convention.
There are protection risks regarding delays or restrictions on the access to asylum for some individuals, constraints on the
freedom of movement, and lack of simplified access to labor markets. Ongoing access to sufficient land within the
proposed integrated municipalities presents a substantial risk, as does social cohesion risks on the access to water and

Page 32 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

other resources such as firewood between refugees and host communities. The refugee-related risks will be managed
through the IPF component, policy dialogue with the Government-led DRS, and joint engagement with relevant agencies
such as the UNHCR and other stakeholders supporting the development of both the Shirika Plan and Refugee
Regulations.51 In addition, the World Bank, in collaboration with DRS and the UNHCR, will undertake periodic reviews of
Kenya’s refugee policy and institutional environment under its Refugee Policy Review Framework. K-WASH will be
implemented in counties that often experience intermittent border security flare-ups including cattle rustling and conflicts
over scarce resources such as pasture and water (such as Turkana, Samburu, West Pokot, and Baringo). In Garissa and
Mandera, security risks related to inter-clan conflicts over water and pasture and potential terrorist attacks may be
anticipated. These security risks could potentially be exacerbated by Program activities especially if some areas where
possible clans should feel that they have been excluded from Program benefits and could potentially delay or disrupt
implementation. To mitigate this risk, County PIUs will work closely with the respective county security apparatus in
implementing Program activities. In addition, the PMU will undertake a security risk assessment and prepare a Security
Management Plan prior to commencement of any Project activities in these counties.

51 As noted in the UNHCR’s Refugee Protection Assessment Update 5, from January to June 2023.

Page 33 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program(P179012)

ANNEX 1. RESULTS FRAMEWORK MATRIX

@#&OPS~Doctype~OPS^dynamics@padpfrannexpolicyandresult#doctemplate
Program Development Objective(s)
To increase sustainable access to improved water and sanitation services, eliminate open defecation, and improve the financial performance of water
services providers in selected counties, including refugee-hosting counties.

PDO Indicators by Outcomes

Baseline Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Closing Period

Increased sustainable access to improved water services for climate-vulnerable rural households
People provided with sustainable access to improved climate resilient water services under the Program (disaggregated by gender, refugees, and host community members)
(Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 50000 500000 1000000 2000000 3000000 3500000 4000000
➢People provided with sustainable access to improved climate resilient water services under the Program who are female (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 25000 250000 500000 1000000 1500000 1750000 2000000
➢People provided with sustainable access to improved climate resilient water services under the Program who are refugees (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 5000 15000 45000 95000 145000 175000 200000
Increased sustainable access to improved sanitation services and elimination of open defecation
Villages that achieve and sustain open defecation free (ODF) status (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 200 1200 2200 3200 3900 4100 4100
People provided with sustainable access to improved sanitation services (disaggregated by gender, refugees, and host community members) (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 May/2030
0 50000 500000 1000000 2000000 3000000 3500000 4000000
➢People provided with sustainable access to improved sanitation services who are female (Number)

Page 34 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program(P179012)

Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 May/2030

0 25000 250000 500000 1000000 1500000 1750000 2000000
➢(i) People provided with sustainable access to improved sanitation services who are refugees (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 May/2030
0 5000 15000 45000 95000 145000 175000 200000
Improved operational and financial performance of Water Services Providers in participating counties
Water Supply Providers that achieve 100 percent of their Operating Cost Coverage Ratio target as per their approved Performance Improvement Action Plans (Number) DLI
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 5 10 15 20 25 25 25

Intermediate Indicators by Results Areas

Baseline Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Closing Period

Increasing sustainable access to improved water services for climate-vulnerable rural areas
Rural water supply schemes constructed under the program in climate-vulnerable rural areas (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 58 200 400 600 800 900 1000
Households provided with access to improved water services (Number) DLI
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 40000 140000 240000 390000 590000 720000 820000
County water and sanitation strategy and investment plans approved (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 19 19 19 19 19 19 19
Sustainably functioning rural water supply schemes (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 0 200 400 600 800 900 1000
Rural water supply schemes constructed under the program that addopt a WASH plus approach (provide water for multiple productive uses beyond domestic portable water
supply) (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 17 60 120 180 240 270 300
Increased access to improved sanitation services and elimination of OD in climate-vulnerable rural
Improved sanitation facilities constructed and/or rehabilitated under the program (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030

Page 35 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program(P179012)

0 40000 140000 240000 390000 590000 720000 820000

Rural public early childhood development centres and primary schools provided with adequate WASH facilities (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 100 200 400 600 800 900 1000
Households provided with access to an improved sanitation facility (Number) DLI
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 40000 140000 240000 390000 590000 720000 820000
Rural Healthcare Facilities provided with adequate WASH facilities (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 100 200 400 600 800 900 1000
Fecal sludge treatment facilities constructed and/or rehabilitated under the program (Number) (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 10 30 50 70 90 100 100
Improved operational and financial performance of Water Service Providers in participating Counties
WSPs that are fully compliant with the legal and regulatory requirements (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 10 33 33 33 33 33 33
WSPs with a Board of Directors approved Performance Improvement Action Plan (PIAP) (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2028 Jun/2023
0 10 33 33 33 33 33 33
WSPs with at least 1/3 share of women in leadership positions (Percentage)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
30 30 100 100 100 100 100 100
Amount of financing leveraged by WSPs from private/commercial financing sources (Number) DLI
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 0 0 US$1,000,000 US$3,000,000 US$6,000,000 US$8,000,000 US$8,000,000
WSP customers satisfied with their water supply services (Percentage)
Dec/2023 Jun/2030
0 100
Improving Sector reforms, coordination and M&E Capacity for integrated water management
NAWASIP Performance-based Intergovernmental Fiscal Transfer Mechanism approved (Text)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
None none none YES YES YES YES YES
Annual water sector M&E report prepared and publicly launched (Text)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030

Page 36 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program(P179012)

None YES YES YES YES YES YES YES

Water Sector intergovernmental coordination meetings/events (Text)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
None YES YES YES YES YES YES YES
Improving integrated WASH services for refugee hosting counties
Rural water supply schemes in refugee-hosting counties constructed under the program (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 20 50 100 150 180 200 200
Households in refugee hosting areas provided with access to improved water services (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 8780 30732 52683 85610 129512 158049 180000
➢out of which are refugee households (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Mar/2030
0 4000 14000 24000 39000 59000 70000 80000
Sustainably functioning rural water supply schemes in refugee-hosting areas (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 20 50 100 150 180 200 200
Improved sanitation facilities in refugee-hosting counties constructed under the Program (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 8,780 30,732 52,683 85,610 129,512 158,049 180000
Rural public schools in refugee hosting areas provided with adequate WASH facilities (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 10 30 50 70 90 100 100
Rural HCFs in refugee-hosting counties provided with adequate WASH facilities (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2028 Dec/2029 Jun/2023
0 10 30 50 70 90 100
Households in refugee-hosting areas provided with access to an improved sanitation facility (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Jun/2030
0 8,780 30,732 52,683 85,610 129,512 158,049 180000
➢out of which are refugees (Number)
Dec/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 Oct/2030
0 4,000 14,000 24,000 39,000 59,000 70,000 80000
Water service providers established by refugee-hosting counties to provide integrated refugee-host community WASH services (Text)
Dec/2023 Jun/2030

Page 37 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program(P179012)

None YES, one for each

County

Disbursement Linked Indicators (DLI)

Period Period Definition Timeline

Period 0 Project Approval 2023
Period 1 Program year 1 2024
Period 2 Program year 2 2025
Period 3 Program year 3 2026
Period 4 Program year 4 2027
Period 5 Program year 5 2028
Period 6 Program year 6 2029
Period 7 Program year 6 2030

Baseline Period 0 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7

1 : Number of counties that have an approved County Water and Sanitation Strategy and Investment Plan (CWSS&IP) (Number )
0 0 19 0 0 0 0 0 0
0.00 0.00 19,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00
DLI allocation 19,000,000.00 As a % of Total Financing Amount 8.3%
2 : Households provided with access to improved water services (Number )
0 0 40000 100,000 100,000 150,000 200,000 130,000 100,000
0.00 0.00 1,600,000.00 4,000,000.00 4,000,000.00 6,000,000.00 8,000,000.00 5,200,000.00 4,000,000.00
DLI allocation 32,800,000.00 As a % of Total Financing Amount 14.0%
3 : Number of sustainably functioning water schemes (Number )
0 0 0 200 200 200 200 100 100
0.00 0.00 0.00 1,000,000.00 2,000,000.00 3,000,000.00 4,000,000.00 4,500,000.00 5,500,000.00
DLI allocation 20,000,000.00 As a % of Total Financing Amount 9.0%
4 : Households provided with access to an improved sanitation facility (Number )

Page 38 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program(P179012)

0 0 40,000 100,000 100,000 150,000 200,000 130,000 100,000

0.00 0.00 1,200,000.00 3,000,000.00 3,000,000.00 4,500,000.00 6,000,000.00 3,900,000.00 3,000,000.00
DLI allocation 24,600,000.00 As a % of Total Financing Amount 13.0%
5 : Villages that achieve and sustain community-wide sanitation status (Number )
0 0 1 1 1 1 1 1 1
0.00 0.00 4,060,000.00 5,660,000.00 9,320,000.00 9,320,000.00 8,720,000.00 4,060,000.00 3,660,000.00
DLI allocation 44,800,000.00 As a % of Total Financing Amount 19.0%
➢ 5.1 : Villages achieving Open defecation free status (Number )
0 0 200 1000 1000 1000 700 200 0
0.00 0.00 400,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,400,000.00 400,000.00 0.00
DLI allocation 8,200,000.00 As a % of Total Financing Amount 4.0%
➢ 5.2 : Villages that achieve community-wide sanitation status (Number )
0 0 100 100 200 200 200 100 100
0.00 0.00 2,460,000.00 2,460,000.00 4,920,000.00 4,920,000.00 4,920,000.00 2,460,000.00 2,460,000.00
DLI allocation 24,600,000.00 As a % of Total Financing Amount 11.0%
➢ 5.3 : Villages that sustain community-wide sanitation status (Number )
0 0 100 100 200 200 200 100 100
0.00 0.00 1,200,000.00 1,200,000.00 2,400,000.00 2,400,000.00 2,400,000.00 1,200,000.00 1,200,000.00
DLI allocation 12,000,000.00 As a % of Total Financing Amount 5.0%
6 : Number of WSPs compliant with the legal and regulatory requirements for good governance and have an approved PIAP (Number )
0 0 10 23 0 0 0 0 0
0.00 0.00 4,090,900.00 9,409,070.00 0.00 0.00 0.00 0.00 0.00
DLI allocation 13,500,000.00 As a % of Total Financing Amount 6.0%
7 : Water Supply Providers that achieve 100 percent of their Operating Cost Coverage Ratio target as per their approved Performance Improvement Action Plans (Number )
0 0 33 33 33 33 33 33 0
0.00 0.00 3,716,663.50 3,716,663.50 3,716,663.50 3,716,663.50 3,716,663.50 3,716,663.50 0.00
DLI allocation 22,300,011.00 As a % of Total Financing Amount 13.0%
8 : Amount of financing leveraged by WSPs from private/commercial financing sources (Number )
0 0 0 0 1 1 0 1 1
0.00 0.00 0.00 0.00 1,000,000.00 2,000,000.00 3,000,000.00 2,000,000.00 0.00
DLI allocation 8,000,000.00 As a % of Total Financing Amount 2.0%
9 : Water sector intergovernmental planning, coordination and monitoring reforms implemented (Text )

Page 39 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program(P179012)

0 0 yes yes yes yes yes yes yes

0.00 0.00 500,000.00 500,000.00 2,500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
DLI allocation 5,000,000.00 As a % of Total Financing Amount 1.0%
➢ 9.1 : Approval and implementation of a Water Sector Performance-based Financing Mechanism (Yes/No )
0 0 no no yes no no no no
0.00 0.00 0.00 0.00 2,000,000.00 0.00 0.00 0.00 0.00
DLI allocation 2,000,000.00 As a % of Total Financing Amount 1.0%
➢ 9.2 : Operationalization of the Water Sector Inter-Governmental Coordination Framework including joint M&E reporting (Text )
0 0 yes yes yes yes yes yes yes
0.00 0.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 0.00
DLI allocation 3,000,000.00 As a % of Total Financing Amount 1.0%
10 : Number of refugee and host community households in Refugee Hosting Counties provided with improved access to WASH services (Number )
0 0 1 1 1 1 1 1 1
0.00 0.00 975,600.00 2,439,000.00 2,439,000.00 3,658,500.00 4,878,000.00 3,170,700.00 2,439,000.00
DLI allocation 20,000,000.00 As a % of Total Financing Amount 14.0%
➢ 10.1 : Number of households in the refugee camps, and in the host communities provided with access to improved water services under the Program (Number )
0 0 8,780 21,951 21,951 32,927 43,902 28,537 21,951
0.00 0.00 536,576.00 1,341,439.00 1,341,439.00 2,012,159.00 2,682,878.00 1,743,871.00 1,341,439.00
DLI allocation 11,000,000.00 As a % of Total Financing Amount 5.0%
➢ 10.2 : Number of households in the refugee camps, and in the host communities provided with access to an improved sanitation facility (Number )
0 0 8,780 21,951 21,951 32,927 43,902 28,537 21,951
0.00 0.00 439,024.00 1,097,561.00 1,097,561.00 1,646,341.00 2,195,122.00 1,426,829.00 1,097,561.00
DLI allocation 9,000,000.00 As a % of Total Financing Amount 4.0%
11 : Number of sustainably functioning water schemes in refugee-hosting Counties (Number )
0 0 20 30 50 50 30 20 0
0.00 0.00 800,000.00 1,200,000.00 2,000,000.00 2,000,000.00 1,200,000.00 800,000.00 0.00
DLI allocation 8,000,000.00 As a % of Total Financing Amount 3.0%
12 : Number of villages in the refugee camps, and in the host communities certified as achieving CWS status (Number )
0 0 1 1 1 1 1 1 1
0.00 0.00 1,200,000.00 2,400,000.00 2,400,000.00 2,400,000.00 2,400,000.00 700,000.00 500,000.00
DLI allocation 12,000,000.00 As a % of Total Financing Amount 5.0%
➢ 12.1 : Villages in the refugee camps, and in the Host communities achieving ODF status (Number )

Page 40 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program(P179012)

0 0 100 200 200 200 200 100 0

0.00 0.00 200,000.00 400,000.00 400,000.00 400,000.00 400,000.00 200,000.00 0.00
DLI allocation 2,000,000.00 As a % of Total Financing Amount 1.0%
➢ 12.2 : Villages in the refugee camps, and in the Host communities achieving CWS status (Number )
0 0 40 80 80 80 80 20 20
0.00 0.00 800,000.00 1,600,000.00 1,600,000.00 1,600,000.00 1,600,000.00 400,000.00 400,000.00
DLI allocation 8,000,000.00 As a % of Total Financing Amount 3.0%
➢ 12.3 : Villages in the refugee camps, and in the Host communities sustaining CWS status (Number )
0 0 40 80 80 80 80 20 20
0.00 0.00 200,000.00 400,000.00 400,000.00 400,000.00 400,000.00 100,000.00 100,000.00
DLI allocation 2,000,000.00 As a % of Total Financing Amount 1.0%

Page 41 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Monitoring & Evaluation Plan: PDO Indicators by PDO Outcomes

Increased sustainable access to improved water services for rural households in selected counties
People provided with sustainable access to improved climate resilient water services under the Program (Number)
This indicator measures the cumulative number of people who access to water from an improved and climate resilient
Description
water source that have been constructed through the Program.
Frequency Annual measurement
Data source County Government Water department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department
Collection
Increased sustainable access to improved sanitation services and elimination of open defecation
Villages that achieve and sustain open defecation free (ODF) status (Number)
ODF status requires (a) no exposed human excreta within the community/households, (b) all households have access
Description to a toilet (individual or shared), and (c) all households have a handwashing facility near the latrine with soap/ash and
water.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using MoH-prescribed CLTS M&E protocols
Collection
Responsibility for Data
County Government Department of Health
Collection
People provided with sustainable access to improved sanitation services (Number) CRI
The indicator measures the cumulative number of people who have been provided with access to an improved
Description
sanitation facility through the Program.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data Qualitative inspections and quantitative data collection using MoH-prescribed M&E protocols for rural sanitation
Collection facilities
Responsibility for Data
County Government Department of Health
Collection
Improved financial performance of Water Services Providers in participating counties
Water Supply Providers that achieve 100 percent of their Operational Cost Coverage Ratio (OCCR) target as per their approved PIAPs (Number)
DLI

This indicator measures the number of WSPs that have made improvements in operational and financial performance
Description
and reached at least 100 percent OCCR.
Frequency Annual measurement
Data source WSP M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department, WSP
Collection

Page 42 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Monitoring & Evaluation Plan: Intermediate Results Indicators by Results Areas

Increasing sustainable access to improved water services for climate-vulnerable rural areas
County water and sanitation strategy and investment plans approved (Number)
The county government executive approved 5-year strategy and investment plan and the implementation roadmap will
Description guide both public and private investments in water supply and sanitation services toward achieving the universal
access target by 2030.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department
Collection
Rural water supply schemes constructed under the program in climate-vulnerable rural areas (Number)
This indicator measures the number of rural water schemes constructed by each county to supply improved water to
Description
households.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department
Collection

Rural water supply schemes constructed under the program that adopt a WASH plus approach (provide water for multiple productive uses
beyond doemstic portable water supply) (Number)
This indicator measures the number of rural water schemes constructed by each county that provide water for
Description
productive uses such as irrigation and so on beyond domestic portable water supply.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department
Collection
Climate-vulnerable households provided with access to improved water services (Number) DLI
This indicator measures the cumulative number of households that have access to an improved water source
Description constructed through the program. The definition of a household as applied in the 2022 Kenya Demographic and Health
Survey (KDHS) applies. The KDHS indicates that the mean household size in rural areas is four people.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department
Collection
Sustainably functioning rural water supply schemes (Number)
This indicator primarily measures the number of water schemes in the participating counties that are operated under
Description an approved professional service provider model as per WASREB regulations. This is to ensure functionality of the
schemes with functionality defined in the POM.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data Qualitative inspections and quantitative data collection using M&E protocols defined in the POM

Page 43 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Collection
Responsibility for Data
County Government Water Department
Collection
Increased sustainable access to improved sanitation services and elimination of OD in climate-vulnerable rural
Improved sanitation facilities constructed and/or rehabilitated under the Program (Number)
This indicator measures the cumulative number of individual household-level improved sanitation facilities constructed
Description
by beneficiaries of the Program.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data Qualitative inspections and quantitative data collection using MoH-prescribed M&E protocols for rural sanitation
Collection facilities
Responsibility for Data
County Government Department of Health
Collection
Fecal sludge treatment facilities constructed and/or rehabilitated under the Program (Number)
This indicator measures the number of fecal sludge treatment plants for safe treatment and disposal of fecal sludge
Description from houseolds, schools, HCF constructed under the Program. These include decentralized treatment facilities (DTFs)
that are designed to the acceptale minimum design standards.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department
Collection
Rural public schools provided with adequate WASH facilities (Number)
This indicator measures the number of rural public schools provided with adequate WASH facilities as per GoK
Description
standards and guidelines.
Frequency Annual measurement
Data source County Government, MoH, MoE, M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using prescribed M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Department of Health
Collection
Households provided with access to an improved sanitation facility (Number) DLI
This indicator measures the cumulative number of households who are provided with an improved sanitation facility
Description
that has been constructed under the Program.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data Qualitative inspections and quantitative data collection using MoH-prescribed M&E protocols for rural sanitation
Collection facilities
Responsibility for Data
County Government Department of Health
Collection
Rural HCFs provided with adequate WASH facilities (Number)
This indicator measures the number of rural HCFs provided with adequate WASH facilities as per GoK standards and
Description
guidelines.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using prescribed M&E protocols defined in the POM
Collection
Responsibility for Data County Government Department of Health

Page 44 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Collection
Improved financial performance of Water Service Providers in participating Counties
WSPs that are fully compliant with the legal and regulatory requirements (Number)
This indicator measures the number of WSPs that comply with the relevant legal and regulatory requirements,
Description
including mandated gender diversity in the WSP workforce and community consultation and grievance redress.
Frequency Annual measurement
Data source WSP M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department, WSP
Collection
WSPs with a Board of Directors approved Performance Improvement Action Plan (PIAP) (Number)
This indicator measures the number of WSPs which have an approved PIAP which contains (a) a diagnostic of factors
Description influencing WSP’s financial performance, (b) identification and prioritization of costed activities, and (c) a set target for
OCCR improvement that the PIAP.
Frequency Annual measurement
Data source WSP M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government WaterDdepartment, WSP
Collection
WSPs with at least 1/3 share of women in skilled and leadership positions (Percentage)
This measures the percentage of women from the total personnel in those positions. Eligible positions include technical
(medium and high skilled), management, and other leadership (such as Board of Director) positions. The percentage of
Description
women in these positions are tracked for each WSP. The percentage of WSPs with at least one-third women in such
positions is reported.
Frequency Annual measurement
Data source WSP M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department, WSP
Collection
Financing mobilized by WSPs from commercial fincancing to improve water services (Text) DLI
This indicator measures the cumulative amount (in Kenya shillings) of matching grants for commercial financing
Description leveraged by WSPs. For the corresponding DLI, US$1,000,000 per WSP to match an equal amount leveraged from
private capital for up to 5 WSPs.
Frequency Annual measurement
Data source WSP and Water Fund M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department, WSP, and Water Fund
Collection
WSP customers satisfied with their water supply services (Percentage)
This indicator measures the number of WSPs that measure at least 80% satisfaction in customers supplied by WSPs
under the Program in the areas of continuity and reliability of supply, water quality, and cost. Monitoring includes
Description
metadata on the nature of service problems, time to resolution, and other elements as defined in the County-WSP
contract.
Frequency Annual measurement
Data source WSP M&E records
Methodology for Data Qualitative inspections and quantitative data collection using M&E protocols defined in the POM

Page 45 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Collection
Responsibility for Data
County Government Water Department, WSP
Collection
Improving Sector reforms, coordination and M&E Capacity for integrated water management
NAWASIP Performance-based intergovernment Fiscal Transfer Mechanism approved (Number)
This indicator measures the approval by the Cabinet of a new performance-based financing mechanisms for fiscal
Description
transfers from the National Government to the counties for the implementation of NAWASIP activities.
Frequency Annual measurement
Data source MoWSI (SDWS) M&E records
Methodology for Data
Records of approval of the mechanism
Collection
Responsibility for Data
MoWSI (SDWS)
Collection
Annual water sector M&E report prepared and publicly launched (Number)
This indicator measures the number of water sector M&E progress reports toward achievement of SDGs in Kenya
Description
jointly published every year by the Council of Governors (CoG)and the MoWSI (SDWS).
Frequency Annual measurement
Data source MOWSI (SDWS) M&E records
Methodology for Data
Records of approval of the mechanism
Collection
Responsibility for Data
MOWSI (SDWS) and Council of Govenors (CoG)
Collection
Water Sector intergovernmental coordination meetings/events (Number)
This indicator measures the number of water sector M&E progress reports toward achievement of SDGs in Kenya
Description
jointly published every year by the CoG and the MOWSI (SDWS).
Frequency Annual measurement
Data source MOWSI (SDWS) M&E records
Methodology for Data
Records of approval of the mechanism
Collection
Responsibility for Data
MOWSI (SDWS) and CoG
Collection
Improving integrated WASH services for refugee hosting counties
Rural water supply schemes in refugee-hosting counties constructed under the program (Number)
This indicator measures the number of rural water schemes constructed by refugee-hosting counties to supply
Description
improved water to households in both refugee and host communities.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department, DRS
Collection
Households in refugee hosting areas provided with access to improved water services (Number)
This indicator measures the cumulative number of households who have access to water from an improved water
Description
source that have been constructed through the Program.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data County Government Water Department, DRS

Page 46 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Collection
out of which are refugee households (Number)
This indicator measures the cumulative number of households who are classified as refugees who have access to water
Description
from an improved water source that has been constructed through the Program.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department, DRS
Collection
Sustainably functioning rural water supply schemes in refugee-hosting areas (Number)
This indicator primarily measures the number of water schemes in the refugee-hosting counties that are operated
Description under an approved professional service provider model as per WASREB regulations. This is to ensure functionality of
the schemes with functionality defined in the POM.
Frequency Annual measurement
Data source County Government Water Department M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Water Department, DRS
Collection
Improved sanitation facilities in refugee-hosting counties constructed under the program (Number)
The indicator measures the cumulative number of people in refugee-hosting counties who have been provided with
Description
access to an improved sanitation facility through the Program.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data Qualitative inspections and quantitative data collection using MoH-prescribed M&E protocols for rural sanitation
Collection facilities
Responsibility for Data
County Government Department of Health
Collection
Rural public schools in refugee hosting areas provided with adequate WASH facilities (Number)
This indicator measures the number of rural public schools in refugee-hosting areas provided with adequate WASH
Description
facilities as per GoK standards and guidelines.
Frequency Annual measurement
Data source County Government, MoH, MoE, M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using prescribed M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Department of Health
Collection
Rural HCFs in refugee-hosting counties provided with adequate WASH facilities (Number)
This indicator measures the number of rural HCFs in refugee-hosting areas provided with adequate WASH facilities as
Description
per GoK standards and guidelines.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data
Qualitative inspections and quantitative data collection using prescribed M&E protocols defined in the POM
Collection
Responsibility for Data
County Government Department of Health
Collection
Households in refugee-hosting areas provided with access to an improved sanitation facility (Number)
Description This indicator measures the cumulative number of households in refugee-hosting counties who are provided with an

Page 47 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

improved sanitation facility that has been constructed under the Program.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data Qualitative inspections and quantitative data collection using MoH-prescribed M&E protocols for rural sanitation
Collection facilities
Responsibility for Data
County Government Department of Health
Collection
out of which are refugees (Number)
This indicator measures the cumulative number of households who are categolrized by government as refugees
Description
provided with an improved sanitation facility that has been constructed under the Program.
Frequency Annual measurement
Data source County Government, MoH M&E records
Methodology for Data Qualitative inspections and quantitative data collection using MoH-prescribed M&E protocols for rural sanitation
Collection facilities
Responsibility for Data
County Government Department of Health
Collection

Page 48 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

ANNEX 2. DISBURSEMENT ARRANGEMENTS AND VERIFICATION PROTOCOL

1: Number of counties that have an approved County Water and Sanitation Strategy and Investment Plan (CWSS&IP)
Formula US$1,000,000 per county upon adoption of the CWSS&IP
Disbursements will be made to the counties when a CWSS&IP and implementation roadmap are formally
adopted and approved for implementation by the CEC. The CWSS&IP will be prepared according to a defined
template in the POM and will contain at a minimum (a) a diagnosis of the current WASH access situation,
policy and institutional constraints, and a scenario analysis of how the county can achieve universal access
Description to WASH; (b) establishment of the institutional structure for water resources management and WASH service
delivery in rural and urban areas of the county including definition of how the county will use different service
provision models as per WASREB regulations/guidelines; (c) detailed investments the county intends to
implement to achieve universal access to WASH based on the scenario analysis with details of locations,
budgets, WASH+ approach, and climate resilience; and (d) financing plan for the strategy.
Data source/ Agency County Government, MoWSI (SDWS)
Verification Entity Externaly hired IVA
For each county, results will be verified through desk-based review of the Approved County Water and
Sanitation Strategy, investment plan, and implementation roadmap to ensure that it conforms to the
Procedure
provided template, minutes of the CEC meeting, and a signed letter from the County Governor to the MoWSI
Cabinet Secretary confirming approval and launch and desk review of county annual program-based budgets.
2: Number of households provided with access to improved water services
Formula US$40 per household provided with access to an improved water service
Disbursements will be made proportionate to the number of households provided with access to improved
water services out of water supply schemes that meet the following conditions: (a) the household served is
in a rural area; (b) the water supply scheme has technical designs meeting the minimum design checklist as
defined in the POM, before procurement and construction; (c) the water scheme complies with water quality
Description
standards issued by WASREB; and (d) access is through either a metered connection, shared yard tap, or
water kiosk at a maximum of 500 m from the furthest household. Rehabilitated water points are not eligible
unless it is verified that they include new water points or household connections beyond those currently
served.
Data source/ Agency County Government, MoWSI (SDWS)
Verification Entity IVA
Verification of results will be through desk-based review of documents submitted by each county and physical
Procedure verification visits. The IVA will undertake physical verification visits to verify households served in selected
water schemes on an agreed sampling basis to be defined in the POM.
3: Number of sustainably functioning water schemes
Formula US$5,000 per scheme per year verified as sustainably functioning for up to a maximum of 4 years
Disbursements will be made against the number of water schemes that are verified as sustainable, meaning
(a) at least 90 percent of household services (metered or kiosk) are functioning as per definition of
functionality defined in the POM; (b) water scheme has a WASREB/county-approved tariff system; (c) a
graduated O&M cost recovery is achieved as defined in the POM; (d) the scheme is operated by an approved
Description service provider as per WASREB regulations for rural areas. The provider must have a delegated service
provision compact with the County Water Department and has submitted annual O&M report as per
template defined in the POM and the leadership positions within the service provider should not be more
than two-thirds of the same gender. A sustainably functioning water scheme is eligible for disbursement in
all Program periods; however, a water point must not be submitted under DLI 2 in the same Program period.
Data source/ Agency County Government, MoWSI (SDWS)
Verification Entity IVA

Page 49 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

Verification of results will be through desk-based review of documents submitted by each county and physical
Procedure visits. The IVA will undertake physcial verification visits to selected water schemes on an agreed sampling
basis. The functionality verification will be at scheme level.
4: Households provided with access to an improved sanitation facility
Formula US$30 per household
Disbursements will be made proportional to the number of households provided with access to an improved
Description sanitation facility, meaning a facility at household level that hygienically separates human waste from human
contact. Improved sanitation facilities will be defined in the POM.
Data source/ Agency County Government, MoH
Verification Entity IVA
Verification will be done at village level. Sampling through physical inspection of no less than 50 percent of
Procedure
households per sampled villages
5: Number of villages that achieve and sustain community-wide sanitation status
US$2,000 per village verified as ODF: US$24,600 per village verified as achieving CWS status and US$12,000
Formula
per village verified as sustaining CWS status
DLR 5.1: Villages ODF status as per MoH ODF verification protocol. DLR 5.2: Villages achieving CWS status –
this is to incentivize upgrade from basic ODF status to full improved CWS status. Disbursements will be made
in proportion to the number of villages certified as achieving CWS status, meaning that the following
requirements must be fully met: (a) village has been verified as achieving ODF status, (b) at least 70 percent
Description of households in the village have access to an improved sanitation facility, (c) all public ECD and primary
schools within the village have access to improved WASH facilities meeting minimum standards, and (d) all
public HCFs within the village have access to improved WASH facilities that meet minimum standards.
DLR 5.3: Villages sustaining CWS status - Disbursements will be made in proportion to the number of
villages certified as sustaining CWS status (that is, sustaining all the conditions under 5.1).
Data source/ Agency County Government, MoH, MoE
Verification Entity IVA
The IVA shall carry out (a) a desk review of reports and data maintained by the county and MoH and (b)
physical verification of a random sample of no less than 50 percent of villages to confirm ODF and CWS
Procedure
status. Physical inspection of all facilities in 100 percent of public schools and 100 percent of public health
centers in sampled villages.
6: Number of WSPs compliant with the legal and regulatory requirements for good governance and have an approved PIAP
Formula US$409,090 per WSP verified as achieving full compliance conditions
Disbursement will be triggered when the WSP meets the following compliance conditions: (a) operating with
a valid WASREB license; (b) having a WASREB-approved justified tariff; (c) having a fully constituted Board of
Directors as per WASREB corporate governance guidelines, with membership of the Board of Directors not
being more than two-thirds of the same gender; (d) having a performance contract between the WSP and
the county government with clear KPIs and conditions for ring-fencing the autonomy of WSP operations as
Description defined in the POM; and (e) having a PIAP approved by the WSP Board of Directors to improve the WSP’s
financial performance. The PIAP will detail a series of KPIs to measure improvement in operational and
financial performance (NRW, energy efficiency, billing ratio, collection ratio, staff per connection, and so on)
and set up a clear roadmap of improvement on each of them. The PIAPs will be prepared according to a
template defined in the POM and will be audited technically to ensure the targets of the KPIs are set
realistically and according to the resources available for the investments in efficiency.
Data source/Agency County Government, MoWSI, WASREB
Verification Entity IVA
The IVA shall carry out a desk review of WSP documents and records and cross-check these with WASREB
Procedure
records and data for confirmation.
7: Number of WSPs progressively achieving their Operating Cost Coverage Ratio (OCCR) as defined in their PIAPs
Formula US$675,757 disbursement ceiling per WSP over the Program period scalable to level of achievement

Page 50 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

The OCCR is selected as a representative KPI out of the WSPs PIAPs as a good proxy to measure degree of
implementation of the PIAP. The total amount allocated to this DLI will be equally divided into the 33 WSPs.
Then the annual disbursement each year will be made against the degree of achievement for each WSP as
Description
per their annual OCCR target defined in their PIAP. To be eligible for disbursement under DLI 5, the WSPs
must show sustained full compliance with the legal and regulatory requirements for good governance
defined in DLI 6.
Data source/Agency County Government, MoWSI (SDWS), WASREB
Verification Entity IVA
The IVA shall carry out a review of WSP data related to OCCR. The IVA shall make physical visits to the WSPs
Procedure
to vefify completed investments defined in the PIAPs.
8: Amount of financing leveraged by WSPs from private/commercial financing
Formula 100% of the amount leveraged by the WSP from private/commercial financing
Disbursement will be triggered by the WSP securing a commercial loan deal to finance bankable projects
included in the PIAP, contributing to improvements in the OCCR. This DLI will provide 50 percent of total
Description
bankable project cost or 100 percent of the commercial loan secured. For example, for a bankable project
cost of US$100,000, commercial loan should be US$50,000 and the DLI contributing will be US$50,000.
Data source/Agency County Government, MoWSI (SDWS), Water Fund
Verification Entity IVA
The IVA shall carry out a desk review of WSP financial records verifying the amount of commercial financing
Procedure
leveraged.
9: Water sector intergovernmental Planning, Coordination and Monitoring reforms implemented (Text)
9.1: Approval and implementation of a Water Sector Performance-based Financing Mechanism (Yes/No)
Formula US$2,000,000 upon Cabinet approval and official launch of the mechanism
Disbursements against this sub-DLI will be triggered upon approval by the Cabinet of a National Water Sector
Performance-Based Financing Mechanism to facilitate intergovernment fiscal transfers for water services.
Description
The mechanism will detail eligibility criteria and performance-based methodology for fiscal transfers from
national government to county governments.
Data source/Agency MoWSI
Verification Entity IVA
The IVA will verify the formal adoption and launch through review of the approval process, including the
Procedure Cabinet dispatch released following the meeting that formally adopted the mechanism and the official letter
to the World Bank from the MoWSI (SDWS) confirming launch of the mechanism.
9.2: Operationalization of the Water Sector Inter-Governmental Coordination Framework (Text)
Formula US$500,000 annually upon launch of the water sector M&E report and joint sector coordination report
Disbursement will be triggered when the joint coordination framework secretariat publishes an annually
Description national water sector M&E report of the progress toward implementation of NAWASIP in a template
defined in the POM, including the annual sector coordination report.
Data source/Agency MoWSI (SDWS), Council of Governors
Verification Entity IVA
The IVA will verify the operationalization of the coordination framework by reviewing coordination activities,
Procedure
meeting minutes of the secretariat, and annual joint M&E sector reports.
10: Number of refugee and host community households provided with sustainable access to improved WASH services (Text)
10.1: Number of households in the refugee camps, and in the host communities provided with sustainable access to improved
water services
Formula US$61.11 per household
Disbursements will be made proportionate to the number of households in the refugee camps and in the
Description host communities provided with access to improved water services from water supply schemes that meet
the following conditions: (a) the household served is in a rural area hosting refugees and the household

Page 51 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

served is certified as a refugee household; (b) the water supply scheme has technical designs meeting the
minimum design checklist as defined in the POM, before procurement and construction; (c) the water scheme
complies with water quality standards issued by WASREB and DRS; and (d) access is through either a metered
connection, shared yard tap, or water kiosk at a maximum of 500 m from the furthest household.
Rehabilitated water points are not eligible unless it is verified that they include new water points or
household connections beyond those currently served.
Data source/ Agency MoWSI (SDWS), Turkana and Garissa Counties, DRS
Verification Entity IVA
Verification of results will be through desk-based review of documents submitted by each county and physical
verification visits. The IVA will undertake physical verification visits to verify households served in selected
Procedure
water schemes on an agreed sampling basis to be defined in the POM. The verification of results for refugee
camps will require clearance from DRS.
10.2: Number of households in the refugee camps and in the host communities provided with access to an improved sanitation
facility
Formula US$50 per household
Disbursements to refugee hosting counties will be triggered scalable to the number of households in the
refugee camps and in the host communities provided with access to an improved sanitation facility, meaning
Description
a facility at the household level that hygienically separates human waste from human contact. Improved
sanitation facilites will be defined in the POM.
Data source/Agency MoWSI (SDWS), MoH, Turkana & Garissa Counties, DRS
Verification Entity IVA
Verification of results will be through desk-based review of documents submitted by each county and physical
verification visits. The IVA will undertake physical verification visits to verify households served in selected
Procedure
water schemes on an agreed sampling basis to be defined in the POM. The verification of results for refugee
camps will require clearance by DRS.
11: Number of sustainably functioning water schemes in refugee-hosting counties (Number)
Formula US$80,000 per scheme
Disbursements will be made to the refugee-hosting counties against the number of water schemes that are
verified as sustainable, meaning (a) at least 90% of household services (metered or kiosk) are functioning as
per definition of functionality defined in the POM; (b) water scheme has a WASREB-/county-approved tariff
system; (c) a graduated O&M cost recovery is achieved as defined in the POM; (d) scheme is operated by an
approved service provider as per WASREB regulations for ruraI areas; (e) schemes inside refugee camps are
Description
operated by an agreed service provision model between DRS (and under it UNHCR) and the respective county
as defined in the transition roadmap to an Intergratedwater utility model; and (f) the leadership positions
within the service provider should not be more than two-thirds of the same gender. A sustainably functioning
water scheme is eligible for disbursement in all Program periods; however, a water scheme must not be
submitted under DLI 10.1 in the same Program period.
Data source/Agency MoWSI (SDWS), Turkana and Garissa Counties, DRS
Verification Entity IVA
Verification of results will be through desk-based review of documents submitted by each county and physical
visits. The IVA will undertake physcial verification visits to selected water schemes on an agreed sampling
Procedure
basis. The functionality verification will be at scheme level. The verification of results for refugee camps will
require clearance from DRS.
12: Number of villages in the refugee camps, and in the Host communities certified as achieving CWS status (Number)
Formula US$20,000 per village certified as achieving CWS status
DLR 5.1: Villages achieving open defecation free status as per MoH verification protocol. DLR 5.2: Villages
achieving CWS status—this is to incentivize upgrade from basic ODF status to full improved CWS status.
Description
Disbursements will be made in proportion to the number of villages certified as achieving CWS status,
meaning that the following requirements must be fully met: (a) village has been verified as achieving ODF

Page 52 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

status, (b) at least 70 percent of households in the village have access to an improved sanitation facility, (c)
all public early childhood and primary schools within the village have access to improved WASH facilities
meeting minimum standards, and (d) all public HCFs within the village have access to improved WASH
facilities that meet minimum standards.
DLR 5.3: Villages sustaining CWS status - Disbursements will be made in proportion to the number of
villages certified as sustaining CWS status (that is, sustaining all the conditions under DLI 5.1).
Data source/Agency MoWSI (SDWS), DRS
Verification Entity IVA
The IVA shall carry out (a) a desk review of reports and data maintained by the county and (b) physical
verification of a random sample of no less than 50 percent of villages to confirm ODF and CWS status. Physical
Procedure inspection of all facilities in 100 percent of public schools and 100 percent of public health centers in sampled
villages. The verification of results for refugee camps will require clearance by DRS in consulatation with
UNHCR.

Page 53 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

ANNEX 3. PROGRAM ACTION PLAN

@#&OPS~Doctype~OPS^dynamics@padpfrannexprogramactionplan#doctemplate
DLI Responsibili Completion
Action Description Source # ty Timing Measurement
#1. Establish a County Technical NA Participating Due 28-Jun- Each
Program Implementation Unit Counties Date 2024 Participating
(PIU) with clear roles and County has a
responsibilities, coordination, properly
and communication channels constituted PIU
as defined in the POM as defined in the
POM.
Nomination
letter signed by
County
Governor
submitted to
MoWSI.

#2. Develop a transition Technical NA Turkana and Due 30-Jun- Signed letters
roadmap to an Integrated Garissa Date 2025 from Turkana
Refugee and Host Counties and Garissa
Communities Water Utility counties, MoWSI
Services Model and DRS
approving the
transition
roadmap to an
Integrated
Refugee and
Host
Communities
Water Utility
Services Model.

#3. Deploy at least one Environment NA MoWSI PCU, Due 30-Aug- The MoWSI PMU
qualified and experienced al and Social Participating Date 2024 and each
Environmental, and one Social Systems Counties Participating
Safeguards Expert on a County PIU has
fulltime basis at least one
qualified and
experienced
Environmental

Page 54 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

and one Social

Safeguards
Expert. Signed
letters by
MoWSI and
Participating
Counties and
confirmed
annually through
APA.

#4. Create a dedicated and Environment NA Participating Due 29-Nov- Each

adequately resourced al and Social Counties Date 2024 Participating
Countywide Environmental, Systems County has
Social Health and Safety established an
(ESHS) risk Unit ESHS Unit as per
the
requirements
detailed in the
POM.
Supervision and
monitoring
reports and
confirmed
through APA

#5. Participating Counties and Environment NA MoWSI PMU Recurre Yearly Training on
WSPs PIUs receive training on al and Social nt ESHSRM Manual
use of the Environmental, Systems and GRM
Social, Health and Safety Risks delivered to PIUs
Management (ESHSRM) by MoWSI PMU
Manual in collaboration
with other
relevant Lead
Agencies. Annual
training calendar
delivered on
ESHS capacity
building and
confirmed
through
progress report.

Page 55 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

#6. MoWSI PMU Grievance Environment NA MoWSI PMU Recurre Continuo GRM constituted
Redress Mechanism al and Social nt us and grievances
established and functional Systems being logged,
responded, and
resolved

#7. Include a robust E&S risks Environment NA MoWSI PMU Recurre Yearly E&S verification
management verification al and Social nt indicators are
protocol in the APA Systems included in the
ToR for the APA.
A chapter on
E&S
performance is
included in the
main APA
reports

#8. Include ESHS clauses in the Environment NA MOWSI Recurre Continuo Bidding and
bidding and contract al and Social PNU/County nt us Contract
documents for civil works, Systems & WSP PIUs document
including signing code of templates with
conduct by contractor ESHS aspects.
employees. Percentage
expenditure on
ESHS aspects in
line with the
allocated
budget.
Supervision and
monitoring
reports and
confirmed
through APA.

#9. Establish a basic financial Fiduciary NA WSPs Recurre Yearly Financial and
and accounting system to aid Systems nt accounting
in budgeting, accounting, and system
financial reporting and in established and
developing FM and confirmed throu
procurement manuals gh progress
reports and APA.

Page 56 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

#10. Provide budget line to Fiduciary NA Participating Recurre Yearly Year 1: signed
support internal audit Systems Counties nt letters from the
department at the counties counties
and there after conducting confirming that
annual review of the Program budget line has
for the Participating Counties been created
and WSPs. and budget
allocated.
Annually
thereafter:
signed letters
from the
counties
confirming that
budget has been
allocated

#11. Implementation of public Fiduciary NA MoWSI, Recurre Continuo Procurement

disclosure of procurement Systems Participating nt us Plans and
plans and outcomes as Counties Outcomes
prescribed in the existing laws. and WSPs published by
MoWSI PMU
and
Counties/WSPs
PIUs on their
websites and in
the Public
Procurement
Information
Portal (PPIP) as
prescribed by
the existing
laws.

#12. Develop and implement Fiduciary NA MOWSI Due 29-Nov- Internal

an internal procurement Systems PMU, Date 2024 procurement
related complaint handling Counties & complaint
mechanism WSP PIUs handling
mechanism
established, and
internal
procurement
complaint report

Page 57 of 58
 The World Bank
Kenya Water, Sanitation, and Hygiene Program (P179012)

submitted and
confirmed
through the
APA

#13. Develop and implement Fiduciary NA MoWSI, Recurre Continuo System

procurement and contract Systems Participating nt us established
management monitoring and Counties within six
tracking arrangements in and WSPs months of
every implementing agency. effectiveness or
by Nov. 29,
2024. System
maintained and
confirmed
through
progress reports
and
Implementation
Support
Missions Aide
Memoires

#14. Monitoring the CAJ and Fiduciary NA MOWSI Recurre Yearly Annual
EACC annual certification Systems PMU nt certification
process as part of the process
“resolution of public (certificates
complaints” and “corruption issued by the
prevention indicators” under EACC and CAJ)
the Performance Contracting measured up
system. until
the Program
comes to an
end.

#15. Monitor the list of Fiduciary NA MOWSI Recurre Continuo List of debarred
debarred firms from the Systems PMU; nt us firms
World Bank website: County & continuously
http://www.worldbank.org/de WSP PIUs monitored at the
bar during the preliminary time of tender
evaluation of the tenders evaluations.

Page 58 of 58