Sustainability prospects for water utilities privatization in Kenya

Abstract

Privatization of water utilities is widely practiced in the belief that market forces may help achieve conservation as per the Dublin Principles (Fourth Principle). Kenya has adopted the privatization strategy with the commercialization, inter alia, of its water utilities. This paper looks at the legal, political, social, economic, commercial and environmental implications of this policy move in Kenya. It concludes that although commercialization of water utilities may generally lead to sustainability of services through economic pricing and the application of efficiency-sensitive private sector business practices, there is still no firm evidence to show privatization as an appropriate strategy for sustainable development, particularly when seen on social, political and environmental grounds.