To read the previous set of learning briefs in this series, please follow these links: Flood Mitigation and Resilience, Innovative Tools and Capacity Building, and Peacebuilding and Conflict Mitigation.
We will be hosting a webinar on the topic of sustainable financing methods on Thursday, March 20th. Additional details and a link to register will follow.
Background
This learning brief is part of a series highlighting the work of the Resilient Arid Lands Partnership for Integrated Development (RAPID+) program in Kenya. The program is funded by the Swiss Agency for Development and Cooperation (SDC), with additional contributions from Millennium Water Alliance, participating county governments (Isiolo, Garissa, Wajir, Turkana, and Marsabit), selected private sector partners, and the four implementing organizations: CARE Kenya, Catholic Relief Services (CRS), Food for the Hungry (FH), and World Vision (WV).
The RAPID+ program aims to improve access to safe and sustainably managed water and rangelands in pastoralist communities across all RAPID+ project countries, thus contributing to resilient livelihoods for communities in a peaceful environment. RAPID+ is designed to address two core problems and the complex interactions amid changing climate conditions: insufficient access to adequate and sustainable water for multiple uses and declining rangeland resources.
RAPID+ also aims to improve efficiency in the operations and maintenance of water infrastructure; increase the capacities of governments and communities to manage water resources and services; strengthen the institutions for rangeland management; encourage opportunities for the private sector; target the use of innovative technology where it is appropriate and sustainable; and reduce the disparities of gender in access to and control of water resources.
The following set of stories from the RAPID+ program focuses on the theme of Sustainable Financing Methods in Isiolo and Turkana counties.
Isiolo County: PAYGO Models to Improve Access to Solar Irrigation Equipement
Jotham Kirema is a farmer who has lived in Isiolo since 2009, having relocated from Meru County. Living on his farm with his wife and one child, he grows a variety of vegetables and fruits, including spinach, kale, tomatoes, onions, oranges, lemons, and papayas.
The RAPID+ program team visited his farm for a fact-finding feedback session. They gathered under a lemon tree, surrounded by semi-ripe lemons hanging overhead and the scenic view of abundant fruit trees around them. To start the conversation, they asked Kirema where he sells his farm produce. “People come to my farm to buy my produce. I don’t need to go to the market. The prices are good—I sell my tomatoes for no less than 30 Kenyan shillings per kilogram.”
How did you learn about the PAYGO model?
“Catholic Relief Services (CRS) invited me to a seminar in September 2023. During the seminar, staff from Davis & Shirtliff made a presentation about the Pay-As-You-Go (PAYGO) model, which got me interested, so I signed up. They demonstrated how it works, and we even visited a farm using a water pump purchased through PAYGO. I was impressed by the fact that the pump came with a two-year warranty, unlike most other pumps that don’t usually come with a warranty. I also liked that after purchasing tokens to run the pump, the customer eventually owns the pump. This is what I prefer about buying PAYGO tokens compared to electricity tokens for running a pump.”
Kirema continued, “I got the PAYGO pump in February 2024. However, it’s been raining, so I haven’t started using it yet. Come back in the dry season, and you’ll see how it works. When the rains stop, I plan to use it to grow onions, tomatoes, kale, and spinach on my one-and-a-half-acre piece of land.”
How would you describe your experience as a farmer?
“It has generally been good. We have subsidized fertilizer from the government, but high-quality seeds are expensive, and farmers need them to increase their harvest. We also need more support from the Ministry of Agriculture. In addition, many farmers need training in modern farming techniques, such as drip irrigation and rainwater harvesting, especially now that it’s the rainy season. Farmers also need access to credit because modern farming methods are more expensive.”
The PAYGO Model and Its Impact
The PAYGO model is a partnership between CRS and Davis & Shirtliff under the RAPID+ program, aimed at facilitating access to solar-powered irrigation solutions for crop producers. The Davis & Shirtliff branch representative in Isiolo, who was part of the visiting team, explained that the partnership enables farmers to access small-scale irrigation solutions that promote efficient and cost-effective solar-powered pumping systems. Farmers acquire the system on credit from Davis & Shirtliff, with CRS paying the initial 20% deposit. Farmers then pay for the remaining balance in installments, measured in kilowatt-hours, over a two-year period. Payments are made using the PAYGO App, which allows farmers to complete transactions from their mobile phones.
This system not only instills a sense of ownership but also helps farmers diversify and increase their farm production, thereby widening their profit margins. Another benefit is the significant reduction in fuel and maintenance costs—by as much as 70%. The representative mentioned that smallholder farmers in the pilot phase have significantly reduced the costs of running fuel-powered systems, maintenance expenses, and losses due to frequent breakdowns. This was exemplified by Racha Buke, one of the first cohort members enrolled in the program, who reported in 2023 that she used to spend over USD 131 every month on fuel for her generator. Now, she spends as little as USD 31. This reduction has lowered her production costs and increased her farm’s profit margins.
“The plan is to enroll ten farmers into the model and learn from their experiences to better customize the product. As of April 2024, we have seven farmers in the system. In addition, we plan to enroll more farmers from other counties with the assistance of RAPID+ to gather representative feedback on the product,” said the Davis & Shirtliff representative.
Turkana County: Strengthening Service Delivery at Turkana Urban Water Company
Turkana Urban Water Company, formerly known as Lodwar Water and Sanitation Company Limited (LOWASCO), is a corporate entity that was established in 2007 under the Companies Act, Cap 286 Laws of Kenya. The core business of Turkana Urban Water Company is the provision of efficient and affordable water and sanitation services to over 120,000 residents of Lodwar municipality, as defined in the Service Provision Agreement (SPA). The utility has a total of 9,575 household water connections and uses a manual system to bill its customers. Over the years, this system has posed a major operational impediment to utility.
To strengthen water services delivery, RAPID+ consulted with the Turkana Urban Water Company team and some of the clients, which established that over 70% of the customers were dissatisfied with the current utility billing system. This finding was congruent with the customer care reports, which indicated that most of the complaints and claims were related to billing issues. Additionally, clients required scheduling an appointment with the line departments of billing and revenue and in-person attendance to address these claims, resulting in a time-consuming and frustrating client experience. The system was equally prone to bill errors during manual entry of the meter readers’ report, contributing to utility non-revenue water rates.
RAPID+, through a collaboration with Wonderkid Multimedia Limited, facilitated a business-to-business meeting with Turkana Urban Water Company to deliberate on viable water billing solutions geared towards addressing the billing constraints. The parties agreed on the installation of Utility Master Billing Suite, which integrates customer management and billing systems automation. Turkana Urban Water Company funded 70 percent of the system cost, while RAPID+ facilitated the installation of integrated capacity building for the utility staff by Wonderkid Multimedia Ltd. Other partners like Practical Action also supported the training of utility meter readers to gain knowledge on the digitization of bills.
Following the installation of the system, the company has realized a significant improvement in its customer management process. Bills are automatically issued to customers via mobile short message service (SMS), while actual and real-time meter readings have improved meter reader route performance. For the 6 months, bill complaints have gradually reduced from 75% to 5%.
Factors that led to increased revenue collection
- Community members or customers are accessing water throughout the day. Previously, the kiosks were only open for 10 hours a day.
- All clients are paying for the water service. Prior to the installation, some accessed water on credit and could not pay the monthly bill.
- Transparency in handling the funds collected by the kiosk management. Before, the total revenue from water sales was not appropriately accounted for.
“Since I started using a smartphone to read meters, my work has been easy because the IT office automatically uploads the meter routes, and all we do is scan the meter reading. I am no longer obliged to write down the reading on the paper and then submit it to the office. This has also saved me time used to distribute the bills to customers clients manually, reducing possible human errors.” – Mr. Benson Lokuruchana, Meter reader at the Turkana Urban Water Company
The project has successfully helped the company enhance revenue collection, reduce non-revenue water, and, on average, double its revenue from the two water kiosks. With this outcome, the company has resorted to scaling up the intervention, targeting four other kiosks. Through a collaboration with RAPID+, the company will invest 80% of its revenue towards the purchase of water meters. At the same time, the program will fund 20% to support the capacity needs of the technical team in the repair and maintenance of the meters at Turkana Urban Water Company.
“Turkana Urban Water Company has made great strides following the automation of water supply at Kiosk no.3 and Kiosk no.12. Immediately after the installation of the prepaid water meter, our average monthly revenue from these two water kiosks has doubled. This clearly shows that we have been losing much revenue through unaccounted sales. Our resolve is now to scale up this initiative to cover additional water kiosks and eventually automate all 16 water kiosks. We are grateful to Kenya RAPID+ for having offered the initial support and for their willingness to walk with us in our journey of strengthening water service delivery”. – Mr. Francis Adome, the Technical Director at the Turkana Urban Water Company, comments on the automation of one of the utility water kiosks.
Resources
To read the previous set of learning briefs in this series, please follow these links: Flood Mitigation and Resilience, Innovative Tools and Capacity Building, and Peacebuilding and Conflict Mitigation.
For additional information about the RAPID+ program, please click here.
For additional questions, please contact June Samo, RAPID+ Program Director, (june.samo@mwawater.org)
