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Facilitation of the Development of a Funding Proposal for the Water Services Trust Fund (WSTF)

As part of the implementation of the Water Act 2002 as the legal framework to guide the development of a responsive and effective water sector, the Water Services Trust Fund was established in Kenya. The Fund derives its formal mandate from Section 83 of the Act and it will harness financial resources for the sector.

The objectives for which the Fund is formed are:
• To mobilize resources from bilateral and multilateral development partners internationally and from companies, organizations and individuals in Kenyan and abroad;
• To apply resources raised in funding the provision of water supply and sanitation to areas of Kenya that are currently underserved;
• To establish strong linkages with Water Service Boards to ensure pro-poor targeting and implementation of projects, transparency, accountability and equity while mainstreaming good governance, gender, HIV/AIDS and environmental conservation in the financing process;
• To strengthen the Fund’s institutional capacity to effectively function and upgrade staff skills.
The WSTF and Development Partners recently agreed to look afresh at the options of the format of funding between an accrual-based approach and a cash-based approach. This implies that funds will possibly be disbursed to WSTF against a cash flow projection of cash needs of the projects being implemented by the WSTF.
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