Productivity Analysis among Water Service Providers in Kenya

Kenya’s economic blueprint, the Kenya Vision 2030, provides for a universal Water Coverage for all by the year 2030. However, the country is lagging behind in achievement in this commitment. For instance, against the target of 80% by 2015, the achievement the country was able to achieve 57% by June 2020. This can partly be attributed to financing gaps and inefficiencies among water utilities. The 2018 National Water and Sanitation Strategy has revised the 100% target by 2030 to 80% ‘minimum’ targets if the financing gaps persit. Performance gaps are however largely be attributed to ineffieciencies. To address these inefficiencies, the proposed study aims at estimating productive inefficiencies and over time (2005/06 – 2021/22) for 91 regulated water utilities in Kenya and determine the factors that influence the inefficiencies. The study will use the translog production function to estimate fixed and random effects Panel data models. The study will provide basis for policy advice on good management practices for water utilities, including gender-related interventions, that can be adopted for improving water access levels and contribute to empirical literature. The results will assist stakeholders in promoting efficiencies in the process of further reforms.