NBK Secures $10M to Extend Credit to the WASH Sector

NBK Secures $10M to Extend Credit to the WASH Sector.

In order to increase financing for both public and private water utility companies as well as micro, small, and medium-sized enterprises (MSMEs), National Bank of Kenya (NBK) announced its partnership with the global asset manager WaterEquity. The partnership will mostly amplify the KShs. 5 billion NBK Majikonnect program’s funding by an additional USD 10 million.

Peter Kioko, acting managing director of NBK, emphasized the bank’s dedication to assisting last-mile connectivity in the water industry by enhancing access to financing:

“We are excited to partner with WaterEquity who are intentionally focused on solving the global water crisis. NBK’s collaboration with WaterEquity will positively and significantly impact access to water, sanitation, and hygiene services and products across the country. Our partnership accentuates our focus on attaining Sustainable Development Goal 6 (SDG6) – improving access to clean and safe drinking water for all. Water remains a fundamental enabler for health, education, energy, and agriculture,” Mr. Kioko said.

“This new partnership builds on our foundational work with our WASH-sector anchor partners, Aqua for All in establishing the Majikonnect programme last year. NBK will continue to forge transformative partnerships to improve access to water services,” Mr. Kioko added.

“Lack of financing prevents millions of people worldwide from securing access to safe water and sanitation infrastructure,” said WaterEquity Chief Investment Officer John Moyer. “At WaterEquity, we believe that capital markets offer the best solution to increase access to water and sanitation at a large scale. And we’re very pleased to continue our support for expanded access in Kenya through our investment in NBK, particularly given the bank’s tremendous commitment to financing the sector,” he added.

According to the Water Services Regulatory Board (WASREB) impact report 14-2020/2021, 60% of Kenya’s regulated areas have access to water, while 16% have sewerage.

According to the UN World Water Development Report 2021, it would cost over US$1.7 trillion, or US$114 billion per year, between 2016 and 2030 to achieve the SDG Targets of universal access to safe drinking water, sanitation, and hygiene in 140 low- and middle-income countries. In most regions, it has been demonstrated that such investments have a favorable benefit-cost ratio (BCR) that generates a sizable economic return. Economic gains on cleanliness are much larger because, in many circumstances, they can significantly enhance health outcomes with minimal new costly infrastructure.

Through improved saving plans and affordable, high-quality credit products, NBK has developed a specialty in delivering prompt and effective financial services to clients, thereby strengthening them socially and economically.