K-Rep partners with World Bank to fund water projects

K-Rep Bank is seeking to capture a larger segment of the local market by aggressively taking to financing water projects in counties.

The bank said it has over the past five years given loans amounting to more than Sh290 million to 35 water projects to address perennial shortages in different parts of the country.

K-Rep is using its ‘Maji ni Maisha’ programme to tap opportunities in county governments as it seeks to boost revenue.

“We intend to broaden our presence in the market with the creation of new counties,” head of special projects Elly Aguko told the Business Daily.

The small tier bank has partnered with the World Bank and the European Union with K-Rep advancing loans at 18 per cent and the two helping communities to service these loans.

The World Bank will also offer technical and consultancy assistance in project implementation.

In the deal, K-Rep bank will fund 80 per cent of a project while the remaining 20 per cent will be raised by the community through contributions and public funds such as constituency development fund.

Viable projects will also benefit from subsidies of up to 40 per cent from the World Bank and the EU.

The lender said about 220,000 Kenyans have benefited from water projects funded at a cost of Sh415 million to Sh290 million in loans and an additional Sh125 million from community funds.

The World Bank on May 14 offered a subsidy of Sh8.7 million to Nyamasira Water project in Kisumu County on the basis of the sustainability of the initiative.

The project had last year received a Sh20.1 million loan from K-Rep towards installation of pipelines, bulk and consumer water metres. Nyamasira has since added 1,600 new metred connections to piped water network.

Another project in Bomet County-Kamureito—last week also received a Sh5.5 million subsidy to service its loan standing at Sh10 million.

K-Rep’s managing director Albert Ruturi said the bank aims at making water and sanitation services affordable to the poor.

County governments are seeking ways to provide clean, piped water in race to lure investors, improve standards of living and reduce diseases like cholera.