Loading News Article...
We're loading the full news article for you. This includes the article content, images, author information, and related articles.
We're loading the full news article for you. This includes the article content, images, author information, and related articles.
A new public-private partnership agreement aims to inject €93 million (approximately KSh 13.9 billion) into Naivasha's water infrastructure, promising reliable water and sanitation for both the Special Economic Zone and over 270,000 residents.
A consortium of international and local partners has signed a new agreement to significantly upgrade water and wastewater infrastructure in Naivasha, a move expected to unlock further industrial growth within the Naivasha Special Economic Zone (SEZ) and enhance living conditions for local communities. The project, structured as a public-private partnership (PPP), is valued at an estimated €93 million (approximately KSh 13.9 billion) and will deliver essential bulk water supply and wastewater treatment services under a 30-year agreement with the municipal utility.
The pact, signed by WaterConnect, Haskoning, RebelGroup, Private Infrastructure Development Group (PIDG), and Africa Water Infrastructure Development Ltd. (AWID), signals a critical step in addressing Naivasha's long-standing water challenges. Many residents currently rely on water kiosks, and this initiative aims to transition households to direct connections, thereby improving public health and overall quality of life.
Naivasha, a rapidly growing urban and industrial hub, has faced increasing pressure on its water resources due to rapid urban and industrial expansion. The town's population is projected to reach 575,000 by 2030, underscoring the urgent need for expanded and resilient water infrastructure. The Naivasha SEZ, located on 1,000 acres in Mai Mahiu, Nakuru County, is a flagship project under Kenya's Vision 2030 and the government's Bottom-Up Economic Transformation Agenda (BETA), aiming to drive industrialisation, attract foreign direct investment, and create jobs.
Previous efforts to develop the SEZ have highlighted the critical need for robust infrastructure, including water, electricity, and roads, with funding gaps posing significant challenges. In July 2024, the National Treasury's decision to cut budgetary allocations to the SEZ raised concerns among investors and parliamentary committees regarding the completion of ongoing works.
The project's Privately Initiated Proposal (PIP) by Haskoning and RebelGroup received formal approval from the Kenyan Public Private Partnership Directorate in May 2025. This approval paved the way for the current consortium to advance the project through detailed assessments, technical designs, and financial structuring. The Ministry of Water and Sanitation will oversee the 30-year PPP framework.
The consortium partners bring diverse expertise: Haskoning and RebelGroup initiated the project and provided early-stage development and financial advisory. AWID, established by Metito Utilities and British International Investment (BII), contributes operational and development expertise for climate-resilient water projects. WaterConnect, founded by Water.org, focuses on developing bankable water and sanitation infrastructure projects, while PIDG, through its InfraCo arm, supports infrastructure development in Africa.
The successful implementation of this water infrastructure project is critical for the Naivasha SEZ, which has attracted significant investment pledges, including a KSh 90 billion Turkish Industry Holdings project. Reliable water supply is essential for industries in sectors such as bottling, electric vehicle assembly, logistics, and agro-processing, which are setting up in the zone. The SEZ is projected to create up to 100,000 jobs when fully operational.
However, the project's development phase will involve detailed assessments of community, environmental, and biodiversity impacts, particularly concerning Lake Naivasha, a Ramsar-listed wetland. Effective water resource management is crucial to protect the lake's ecosystem and its diverse wildlife.
While the agreement marks a significant step, analysts have urged clarity on timelines, costs, and safeguards. The recent slashing of the Naivasha SEZ's budgetary allocation by the National Treasury in July 2024, which was initially KSh 10 billion for ongoing works, highlights potential financial uncertainties that could impact the broader development of the zone. The long-term financial sustainability and the exact mechanisms for transitioning households from kiosks to direct connections will be crucial areas to watch.
The next steps involve comprehensive feasibility studies, environmental and social impact assessments, and detailed technical designs. Stakeholders will be closely monitoring the progress of these assessments and the subsequent construction phases. The project's success could serve as a model for other bulk water supply PPP initiatives across Kenya and Africa, particularly in addressing water scarcity and supporting economic development.