By Cynthia Masibo,
Fresh Life has launched a new Results-Based Financing (RBF) mechanism to improve sanitation access in Nairobi’s urban informal settlements. This initiative aims to enhance the delivery of sanitation services in a city where over 60% of the population live in underserved areas lacking adequate sewer systems.
The Water and Sanitation Sector in Kenya has faced persistent challenges, including inadequate infrastructure, limited financing, and insufficient maintenance of existing facilities. According to the National Water and Sanitation Investment Plan (NAWASIP 2023-2030), the sector needs Kshs. 1 trillion to achieve universal coverage and attain Sustainable Development Goal 6 by 2030. However, there is a Kshs. 652 billion financing gap, with a deficit of Kshs. 365 billion specifically for urban sanitation.
To address this gap, leveraging public-private partnerships and blended financing mechanisms is essential to attract private and commercial investments. Fresh Life’s introduction of Results-Based Financing (RBF) for urban non-sewered sanitation marks a significant step towards bridging this gap. RBF is an innovative approach linking financial support directly to the achievement of measurable results, thereby boosting investor confidence and incentivizing service providers to deliver tangible, impactful results.
Fresh Life is a leading provider of urban non-sewered sanitation in rapidly growing cities. They have established one of the largest networks of container-based sanitation in Nairobi, Kisumu, Eldoret, and Lusaka, serving over 260,000 people with daily access to safely managed sanitation services. According to the WASREB Impact Report Issue No. 16, safe sanitation coverage in Kenya stands at only 29%. With seven years remaining until the 2030 Agenda for Sustainable Development Goals deadline, Kenya faces a significant challenge to alter its current trajectory and achieve universal coverage, aiming for 40% sewer and 60% non-sewered coverage by 2030.
Fresh Life has a proven track record of delivering over 7,500 container-based toilets and waste management services as a not-for-profit enterprise reliant on grant funding. The new RBF mechanism will set the precedent for future paid service contracts between the government and Fresh Life, enabling further scale and sustainability. The predefined results for Fresh Life’s RBF model include the number of container-based toilets added to the Nairobi network, the total number of operational toilets, and the number of barrels of pit latrine waste received at Fresh Life’s Mtaa Fresh stations. These three metrics ensure service provision and sustainability while safely removing waste from low-income communities.
The RBF mechanism will be funded by Grand Challenges Canada (GCC) and the Osprey Foundation. Speaking during the launch, Lindsay Stradley, Co-Founder and Executive Director of Fresh Life, noted, “The launch of the Results-Based Financing initiative marks a new era for the urban sanitation sector in Kenya. This mechanism represents a significant step towards achieving universal access to improved sanitation. By focusing on results, we can ensure that every shilling spent translates into real, measurable improvements in public health and quality of life.”
Festus Mutuku, Superintendent Senior Water Engineering at the Ministry of Water, Sanitation and Irrigation, emphasized the government’s role in creating an enabling environment for the private sector and implementing partners. He stated, “The Ministry has been at work, strengthening coordination at the national and county level and with non-state actors to enhance urban sanitation.”
About Fresh Life
Fresh Life is a founding member of the Sanergy Collaborative and works with municipalities and urban residents to plan, build, and scale safe, citywide inclusive sanitation solutions in fast-growing cities starting with Nairobi, Kisumu, and Eldoret in Kenya. Their innovative solutions are designed to suit the realities of today’s cities, which are densely populated and heavily built up, particularly in low-income areas.
Fresh Life’s RBF initiative signifies a transformative step in addressing urban sanitation challenges, promising a brighter, healthier future for Kenya’s informal settlements.
