Water Funds for Stable Supply
Summary
The Nature Conservancy's Upper Tana-Nairobi Water Fund was established to secure a steady supply of freshwater to meet Nairobi's growing demand in the context of increased conversion of forests and wetlands around the city to agricultural land. The water fund has since become an independent Kenyan-registered entity managed by local leadership. It promotes green infrastructure and collaborative stakeholder engagement while serving as a model for future water funds across Africa.
Nairobi is a growing industrial and business center of Kenya and, consequently, has a growing population that requires a steady supply of freshwater for domestic and industrial needs (Herrin, n.d.). Nairobi needs nearly four times more water than it did 15 years ago, and 60% of residents do not have access to a reliable water supply (TNC, 2021). The Tana River supplies 95% of water for Nairobi, however, increased sedimentation in the river, stemming from the conversion of forests and wetlands around Nairobi to agricultural land, has disrupted water treatment and distribution facilities in the downstream city, leading to unmet demands for quality freshwater (TNC, 2021).
Intervention
In 2015, The Nature Conservancy (TNC) launched the Upper Tana-Nairobi Water Fund (UTNWF) in response to the need to protect the Tana River watershed for all stakeholders, as well as to increase the downstream water quality and quantity for Nairobi (TNC, 2020). A water fund is an organization that designs. It enhances financial and governance mechanisms which unite public, private, and civil society stakeholders around the goal of contributing to water security through nature-based solutions and sustainable watershed management (TNC, 2021). The principle that it is cheaper to prevent water problems at the source than to address them downstream guides Water Fund development (TNC, 2020). In Nairobi, this means a shift from solely investing in grey infrastructure (water treatment plants and reservoirs) at the urban level to investing in green infrastructure (TNC, 2020; Herrin, n.d.).
The creation of the UTNWF involved making a strong business case to outline the return on investment and timeframes. UNTWF interventions were modeled for three key stakeholders: small-holder farmers, the Nairobi City Water & Sewerage Company, and the Kenya Electricity Generating Company (Herrin, n.d.). Working with small-holder farmers has been deemed a priority if deforestation, leading to soil erosion and sediment runoff, is to be effectively addressed to improve downstream water quality while simultaneously increasing agricultural yields (TNC, 2020; Herrin, n.d.).
TNC has been a key player in laying the groundwork and gathering the water fund partners in Nairobi. Each partner contributes to or supports the UTNWF in different ways, as steering committee partners, local implementation partners, or funding partners (Herrin, n.d.). The UTNWF brings together major water consumers in Nairobi - companies and government agencies with a vested interest in high-quality and reliable water supply - and creates linkages to non-urban communities (Herrin, n.d.). The Kenyan government has committed a substantial amount of money to establish the UTNWF, reflecting its commitment to restoring and conserving the Tana River (Herrin, n.d.). Public and private donors and major water consumers downstream contribute to the UTNWF to support upstream water and soil protection and conservation initiatives (TNC, 2020). Such measures include the implementation of sustainable farming practices such as terracing techniques, planting trees and creating riparian buffer zones (TNC, n.d.).
Challenges
While the UTNWF is an important initiative to secure freshwater for industrial and household consumption, it does not address other water security challenges such as low levels of investment in the Nairobi water supply and distribution system. Continued, concerted efforts to lower the rate of non-revenue water (approximately 40%, down from 50% in the early 2000s) will ensure minimal water is lost to leakage in the context of a growing urban population and an increasing demand for water (Muchiri, 2019).
Outcomes
The UTNWF was the first water fund established in Africa, being declared a sound investment by utilities and companies who rely on the Tana River (TNC, 2020). As of September 1, 2021, the UTNWF is officially an independent Kenyan-registered entity that is managed by local leadership, rather than a program within TNC (TNC, 2021; TNC, n.d.). The water fund is expected to result in an annual increase in annual water yields of up to 15% (TNC, 2015). As of August 2021, 44,725 farmers have fully implemented conservation activities, 3.4 million trees have been planted, 163 hectares of public forest rehabilitated and 298km of riparian buffer lands fully conserved (TNC, 2021). The UTNWF now serves as a water fund model in other African contexts and showcases how to scale-up water funds around the world to provide solutions to build resilient watersheds (TNC, 2020).
References
Water Funds for Stable Supply
Summary
The Nature Conservancy's Upper Tana-Nairobi Water Fund was established to secure a steady supply of freshwater to meet Nairobi's growing demand in the context of increased conversion of forests and wetlands around the city to agricultural land. The water fund has since become an independent Kenyan-registered entity managed by local leadership. It promotes green infrastructure and collaborative stakeholder engagement while serving as a model for future water funds across Africa.
Nairobi is a growing industrial and business center of Kenya and, consequently, has a growing population that requires a steady supply of freshwater for domestic and industrial needs (Herrin, n.d.). Nairobi needs nearly four times more water than it did 15 years ago, and 60% of residents do not have access to a reliable water supply (TNC, 2021). The Tana River supplies 95% of water for Nairobi, however, increased sedimentation in the river, stemming from the conversion of forests and wetlands around Nairobi to agricultural land, has disrupted water treatment and distribution facilities in the downstream city, leading to unmet demands for quality freshwater (TNC, 2021).
Issue
Intervention
In 2015, The Nature Conservancy (TNC) launched the Upper Tana-Nairobi Water Fund (UTNWF) in response to the need to protect the Tana River watershed for all stakeholders, as well as to increase the downstream water quality and quantity for Nairobi (TNC, 2020). A water fund is an organization that designs. It enhances financial and governance mechanisms which unite public, private, and civil society stakeholders around the goal of contributing to water security through nature-based solutions and sustainable watershed management (TNC, 2021). The principle that it is cheaper to prevent water problems at the source than to address them downstream guides Water Fund development (TNC, 2020). In Nairobi, this means a shift from solely investing in grey infrastructure (water treatment plants and reservoirs) at the urban level to investing in green infrastructure (TNC, 2020; Herrin, n.d.).
The creation of the UTNWF involved making a strong business case to outline the return on investment and timeframes. UNTWF interventions were modeled for three key stakeholders: small-holder farmers, the Nairobi City Water & Sewerage Company, and the Kenya Electricity Generating Company (Herrin, n.d.). Working with small-holder farmers has been deemed a priority if deforestation, leading to soil erosion and sediment runoff, is to be effectively addressed to improve downstream water quality while simultaneously increasing agricultural yields (TNC, 2020; Herrin, n.d.).
TNC has been a key player in laying the groundwork and gathering the water fund partners in Nairobi. Each partner contributes to or supports the UTNWF in different ways, as steering committee partners, local implementation partners, or funding partners (Herrin, n.d.). The UTNWF brings together major water consumers in Nairobi - companies and government agencies with a vested interest in high-quality and reliable water supply - and creates linkages to non-urban communities (Herrin, n.d.). The Kenyan government has committed a substantial amount of money to establish the UTNWF, reflecting its commitment to restoring and conserving the Tana River (Herrin, n.d.). Public and private donors and major water consumers downstream contribute to the UTNWF to support upstream water and soil protection and conservation initiatives (TNC, 2020). Such measures include the implementation of sustainable farming practices such as terracing techniques, planting trees and creating riparian buffer zones (TNC, n.d.).
Challenges
While the UTNWF is an important initiative to secure freshwater for industrial and household consumption, it does not address other water security challenges such as low levels of investment in the Nairobi water supply and distribution system. Continued, concerted efforts to lower the rate of non-revenue water (approximately 40%, down from 50% in the early 2000s) will ensure minimal water is lost to leakage in the context of a growing urban population and an increasing demand for water (Muchiri, 2019).
Outcomes
The UTNWF was the first water fund established in Africa, being declared a sound investment by utilities and companies who rely on the Tana River (TNC, 2020). As of September 1, 2021, the UTNWF is officially an independent Kenyan-registered entity that is managed by local leadership, rather than a program within TNC (TNC, 2021; TNC, n.d.). The water fund is expected to result in an annual increase in annual water yields of up to 15% (TNC, 2015). As of August 2021, 44,725 farmers have fully implemented conservation activities, 3.4 million trees have been planted, 163 hectares of public forest rehabilitated and 298km of riparian buffer lands fully conserved (TNC, 2021). The UTNWF now serves as a water fund model in other African contexts and showcases how to scale-up water funds around the world to provide solutions to build resilient watersheds (TNC, 2020).
Issues |
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Water Scarcity and Access |
Solutions |
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Sustainable Water Supply & Climate Solutions |
References
Herrin, M. (n.d.). Upper Tana-Nairobi Water Fund. International Water Association (IWA). Retrieved January 2, 2022, from https://iwa-network.org/upper-tana-nairobi-water-fund/
Muchiri, E. (2019, November 20). Kenya loses SH7.8BN to non-revenue Water Annually, says official. Retrieved April 26, 2021, from https://www.the-star.co.ke/counties/central/2019-11-20-kenya-loses-sh78bn-to-non-revenue-water-annually-says-official/
The Nature Conservancy. (2021). What is a water fund? TNC Water Funds Toolbox. Retrieved December 24, 2021, from https://waterfundstoolbox.org/getting-started/what-is-a-water-fund
The Upper Tana-Nairobi water fund. The Nature Conservancy (TNC). (2021). Retrieved January 1, 2022, from https://www.nature.org/en-us/about-us/where-we-work/africa/stories-in-africa/nairobi-water-fund/The Upper Tana-Nairobi Water Fund: Improving Water for Millions in Kenya.
The Nature Conservancy (TNC). (2020, March 1). Retrieved January 1, 2022, from https://www.nature.org/en-us/about-us/where-we-work/africa/stories-in-africa/nairobi-water-fund/
Water funds in Africa. The Nature Conservancy (TNC). (n.d.). Retrieved January 1, 2022, from https://www.nature.org/en-us/about-us/where-we-work/africa/stories-in-africa/water-funds-in-africa/
The weight of water. The Nature Conservancy (TNC). (2018, March 6). Retrieved January 1, 2022, from https://www.nature.org/en-us/about-us/where-we-work/africa/stories-in-africa/the-weight-of-water/