The Water Sector Trust Fund (WSTF) is established under the Water Act as a financing institution responsible for supporting water and sanitation services in marginalized and underserved areas of Kenya.
WSTF operates as a body corporate with perpetual succession and has the power to:
- Sue and be sued in its corporate name.
- Perform legal and corporate functions necessary for achieving its objectives.
1. Role of the Water Sector Trust Fund
The primary roles of WSTF include:
(i) Providing Grants to Counties
- Offers conditional and unconditional grants to county governments, supplementing the Equalisation Fund.
(ii) Financing Water Services in Underserved Areas
- Supports water service development in areas where commercial viability is low, including:
- Community-based water management projects.
- Water supply services in rural areas.
- Sanitation and sewerage projects in poor urban settlements.
- Research initiatives on water resources management and sanitation.
2. The Board of Trustees of WSTF
WSTF is managed by a Board of Trustees appointed under the Water Act.
Composition of the Board
- The Board comprises a chairperson and six members.
- Members are appointed in line with the First Schedule of the Water Act.
- The Cabinet Secretary for Water issues the trust deed that defines the Board’s functions.
3. Functions of the Board of Trustees
The Board of Trustees is responsible for:
(i) Managing Financial Resources
- Oversees the funds allocated to water projects.
- Mobilizes additional financial resources for WSTF.
(ii) Setting Regulations & Funding Criteria
- Develops guidelines for financing water projects in collaboration with the national and county governments.
- Ensures fair and efficient allocation of funds.
- Publishes funding qualification criteria after public consultations.
(iii) Prioritizing Underserved Areas
- Allocates resources to:
- Regions with low access to clean water.
- Rural areas at risk of water depletion and degradation.
(iv) Project Monitoring & Transparency
- Tracks project implementation and evaluates impact.
- Maintains public records on funded projects and their progress.
(v) Onward Lending to Water Service Providers
- Provides grants and loans to:
- Water service providers (WSPs).
- County governments.
- Registered community schemes.
- Profits from these loans are reinvested in underserved areas.
(vi) Managing Subsidiary Funds
- Creates additional funds for sustainable financing of water projects.
(vii) Incentive & Disaster Management Programs
- Develops incentive programs for:
- Water resource conservation.
- Disaster response.
- Climate change adaptation and mitigation.
4. Key Impact Areas of WSTF
- Rural Water Supply – Expanding water access in rural areas.
- Urban Poor Water & Sanitation – Improving water services in informal settlements.
- Water Resources Management – Supporting sustainable use of water resources.
- Climate Adaptation Programs – Helping communities mitigate drought and floods.
5. Conclusion
The Water Sector Trust Fund plays a critical role in improving water access and sanitation in Kenya, particularly in marginalized areas. By funding counties, WSPs, and community schemes, WSTF ensures that underserved populations get safe and sustainable water services.
For more information, visit the Water Act:
Water Sector Trust Fund Act.
