Influence of Infrastructure Financing on Financial Sustainability of Water Service Providers in Kenya
Purpose. To establish the influence of infrastructure financing on financial sustainability of water service providers (WSPs) in Kenya.
Design/Method/Research approach. The study adopted the pragmatism research philosophy and an explanatory sequential mixed design targeting some senior managers selected from the eighty-eight registered WSPs in Kenya. A structured questionnaire was used to collect the quantitative data while an interview schedule was used to collect the qualitative data from key informants. The data analysis was done on the bases of descriptive and inferential statistics; the nature and size of relationship was tested using correlation and the regression analysis while the results are presented using tables and graphs.
Findings. The study concludes that Infrastructure financing has a positive and statistically significant influence on financial sustainability of WSPs in Kenya.
Theoretical implications. The research proves that infrastructure financing has a statistically significant effect on financial sustainability of WSPs in Kenya.
Practical implications. Taking into account the findings, it is recommended that the National government via the National treasury and WWDAs should ensure that all funding proposals capture end-to-end financing so as to increase the last mile connectivity.
Social implications. The study also identifies the need for the Ministry of Water, Sanitation and Irrigation (MWSI) to collaborate with key stakeholders in order to tap into local resources and development grants.
Originality/Value. The study makes a unique contribution by establishing that infrastructure financing significantly influences financial sustainability of water service providers in Kenya.
Research limitations/Future research. There is need to explore the possibility partnerships with communities and NGOs as the sector is highly indebted and unable to service the current loan portfolio.
Paper type. Empirical.
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