Influence of infrastructure financing on financial sustainability of water service providers in Kenya

Abstract

Purpose: To establish the influence of infrastructure financing on financial sustainability of water service providers (WSPs) in Kenya. Methodology: The study deals with the pragmatic research philosophy and an explanatory sequential mixed design targeting at some senior managers among the eighty-eight registered WSPs in Kenya. A structured questionnaire is used to collect the quantitative data while an interview schedule is used to collect the qualitative data from key informants. The data analysis is done on the base of descriptive and inferential statistics; the nature and size of relationship is tested by using correlation and the regression analysis while the results are presented using tables and graphs. Findings: The study concludes that Infrastructure financing has a positive and statistically significant influence on financial sustainability of WSPs in Kenya. Theoretical value: The financial sustainability of WSPs in Kenya has been proven to be highly dependent on infrastructure financing. Practical value: Taking into account the findings, the National government is recommended to ensure the process that all funding proposals capture end-to-end financing as well as an increase in the last mile connectivity via the National treasury and WWDAs. Future research: There is need to explore the possibility partnerships with communities and NGOs as the sector is highly indebted and unable to service the current loan portfolio. Social value: The study also identifies the need for the Ministry of Water, Sanitation and Irrigation (MWSI) in collaboration with key stakeholders to expand cooperation in order to tap into local resources and development grants. Originality / Value: The study makes a unique contribution by establishing that infrastructure financing significantly influences financial sustainability of water service providers in Kenya. Paper type - Empirical.