Results-Based Financing for Water Service Providers in Kenya

The Water Services Trust Fund of Kenya (WSTF) is administering an output-based aid (OBA) program that provides financial incentives to water service providers to invest in rehabilitation and expansion of water and sanitation infrastructure. The objective of the program is to improve the operating efficiency and financial performance of water service providers, and to extend access to unserved consumers. The program is supported by GPOBA and the World Bank, with funds from the Swedish International Development Agency (Sida).

This booklet serves as a guide on results-based financing for water service providers in Kenya, with information on OBA, the Kenya OBA Fund (including an overview of the eligibility criteria), the application and disbursement process, a debt service example, and essential requirements for designing OBA projects.