Previously service provision had been the responsibility of a single National Water Conservation and Pipeline Corporation as well as of a few local utilities established since 1996.
The Act also created a national regulatory board that carries out performance benchmarking and is in charge of approving SPAs and tariff adjustments.
Full cost recovery is not achieved due to various reasons, including a high level of non-revenue water (average of 42%).
The data thus collected are analysed by the Joint Monitoring Programme for Water Supply and Sanitation of WHO and UNICEF to assess progress towards achievement of the Sustainable Development Goals.
The capital city Nairobi receives its water resources from two drainage systems: The oldest sources, the Kikuyu Springs (used since 1906) and the Ruiru Dam (since 1938) are located in the Athi River Basin.
[20] Kenya is one of several countries where a professionalized maintenance service model is being developed as an alternative approach to improving the sustainability of water supply systems.
[26] Significant regional differences in access were reported: the highest level was registered in the area served by Tetu Aberdare Water and Sanitation Company (72%) whereas the lowest was recorded in Muthambi in Meru South District (4%).
[29] People in rural areas use a wide range of water sources, some of which they have to pay for, and some of which are free of charge: Rainwater (rock catchment or roof catchment), hand-dug wells or handpumps (these can be household-owned, private, inside or outside of the village), water kiosk (inside or outside of the village), or vendors who use donkeys and carts or motorized vehicles.
Further options include dry riverbed scooping, earth pans, rivers or canals, and piped water inside the dwelling or yard.
[32] According to an assessment report carried out in 2009, there are 43 sewerage systems in Kenya and waste water treatment plants in 15 towns (total population served: 900,000 inhabitants).
[37] The history of the water and sanitation sector in Kenya is characterised by institutional fragmentation that led to numerous inefficiencies and by subsequent attempts at reform.
The administration of water supply was carried out by the Hydraulic Branch of the Public Works Department, which started operating in the coastal city of Mombasa.
[40] The rural water supply schemes set up as part of the programme were operated by County Councils (under the Ministry of Local Government).
[39] In 1983 a Water Use Study carried out by SIDA confirmed that the situation was unsustainable and suggested decentralisation and removing operation and maintenance responsibilities from the Ministry.
The utility's board includes representatives of NGOs, women's organisations, the chamber of commerce and industry and the Kenya Consumer Organization.
Its mission is to "realise the goals of the MDG declaration and the Vision 2030 of the Kenyan Government concerning access to safe and affordable water and basic sanitation by responsive institutions within a regime of well-defined standards and regulation."
[46] When the WSBs were established, they were criticised as "an unnecessary layer of bureaucracy" that lead to a "conflation of roles" because they are "both regulators (alongside the WSRB) and market actors" as well as "monoliths... that are far away from the point of service".
[63] In 1995 a service contract was signed between the NWCPC and Gauff Consulting Engineers to support local authorities in the coastal town Malindi in billing and revenue collection.
It is involved in community development and infrastructure construction in urban slums and in small towns, advocates for improved sector governance and carries out research.
[30]: 3 The economic performance of Kenyan Water Service Providers is closely monitored by WASREB and made available in the Impact Report to encourage competition and spread best practices.
Important indicators of economic efficiency are: collection rates, the level of non-revenue water, metering ratios and labour productivity.
However, all but four utilities fell short of the target to cover 150% of operation and maintenance costs in order to service debt and to develop their infrastructure.
This figure is not very indicative because of significant regional variations and because in Kenya a progressive block tariff system is in place for household connections.
The ministry responsible for water is, however, aware that full cost recovery tariffs for sewerage for certain systems would make the service provision unaffordable for many connected households.
According to the regulator, "the overwhelming dependency on development partners (i.e. external donors) with over 94% of the total investment funds provided in 2013/14 (does) not augur well for the sector."
The WSTF receives funds from the Government of Kenya and from donor agencies and directs them to the 362 poorest locations throughout the country (identified in collaboration with Water Services Boards).
In October 2006 the Kenyan Government initiated a Sector-Wide Approach (SWAp) to harmonise the activities of the development partners, the co-ordination and the implementation of projects.
[90][91] The World Bank's "Water and Sanitation Service Improvement Project" for the period 2007–2012 in Kenya has a total loan volume of approximately $159 million.
[50] Piped water schemes have fewer or no customers during the wet season because "users shift to using free surface and groundwater alternatives".
[30]: 42 This causes a range of disadvantages for students, one of them being for adolescent girls to have to manage menstrual hygiene needs without access to handwashing facilities.