.... In Kenya, the right to supply water is granted by one of the eight regional Water Services Boards (WSBs)2that provide a CBO with a service provision agreement (SPA). The SPA is a management contract that assigns the water services operating mandate to the water services provider, giving it a monopoly over the supply of water within its area of operation. The SPA defines the operational and performance characteristics between the two parties and is subject to regulatory oversight. Since the programs inception in 2007, K-Rep Bank has lent $1 million to 12 CBOs, 9 of which have completed implementing their projects and have received subsidies. The investments financed include water resource development and augmentation, water treatment, distribution, and meters. These investments are expected to increase the number of connections in the projects financed from 5,300 to 9,900 and target about 67,000 beneficiaries. The program is now being scaled up to target 50 projects countrywide, targeting 165,000 beneficiaries; the disbursement rate is expected to increase significantly, as the implementing agency has come some way down the project management learning curve.

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