Table of Contents
Key Points
- Co-op Bank secures a $3.8 million partnership to expand clean water and sanitation access in Kenya, benefiting over 50,000 people.
- Co-op Bank will allocate Ksh500 million ($3.8 million) in loans to water service providers, including incentives like rebates and repayment moratoriums.
- The initiative aims to support at least 15 water projects, reaching over 50,000 Kenyans with improved clean water access.
Co-operative Bank Group (Co-op Bank), a Nairobi-based lender led by Kenyan banking magnate Gideon Muriuki, has secured a $3.8 million partnership aimed at improving clean water and sanitation access across the country.
The initiative, which brings together Co-op Bank, Aqua for All, Water.org, and the Water & Sanitation Services Provider Association (WASPA), will fund medium-scale water infrastructure projects nationwide, leveraging public and private sector capital.
As part of its social impact strategy, Co-op Bank will allocate more than Ksh500 million ($3.8 million) in loans for water service providers (WSPs), offering incentives like rebates upon project completion and repayment moratoriums during construction phases, aimed at reducing financial strain on essential water infrastructure.
Kenya's water crisis gets a boost
Lydia Rono, Co-op Bank’s Director of Corporate and Institutional Banking, emphasized the partnership’s potential to enhance both health and economic outcomes for Kenyan communities. “This collaboration blends financial resources with technical expertise to meet a critical community need,” Rono said. “Our goal is to extend access to clean water and sanitation, improving lives in urban, peri-urban, and rural areas.”
The fund, managed by Aqua for All, will support at least 15 water and sanitation projects, targeting underserved areas with a focus on improving water supply efficiency and tackling Kenya’s long-standing issue of Non-Revenue Water (NRW) losses. The program is expected to impact over 50,000 people.
Francis Musinguzi, Africa Regional Director at Water.org, underscored the initiative’s potential to attract further investment. "Our aim is to create bankable projects that foster sustainable development, providing capacity-building for water providers and Co-op Bank’s financing team," Musinguzi said.
Aarno Keijzer, Lead Impact Finance Specialist at Aqua for All, added that the focus on reducing NRW would allow water utilities to enhance operational efficiency and extend services to underserved regions.
Muriuki’s strategic leadership drives Co-op Bank growth
Co-op Bank, a major player in East Africa’s financial sector, boasts a network of subsidiaries including Kingdom Securities, Co-op Trust Investment Services, Co-operative Consultancy & Insurance Agency, Kingdom Bank, and the Co-operative Bank of South Sudan.
Under Muriuki’s leadership, Co-op Bank has expanded rapidly, securing its place among Kenya’s leading lender. Muriuki’s nearly 2 percent stake, valued at around $13 million, places him among the wealthiest investors on the Nairobi Securities Exchange.
In the first half of 2024, Co-op Bank reported a 7 percent rise in profit to Ksh12.99 billion ($100 million), driven by solid income growth and an expanded workforce. The bank also secured a $25.2 million facility from DEG to support women-owned businesses in Kenya.
