World Bank warns over water resource taxation

By MACHARIA KAMAU

World Bank has warned against the move by some county governments to increase revenue through introduction of levies on water resources shared with other devolved units.

It said the push poses the risk of slowing down the devolution process.  The Bretton Woods institution said continued flow of water resources across counties is a key test for smooth transition to the devolved system of government in Kenya.

A number of counties have been contemplating imposing charges on water resources sourced from their regions and used in other counties in an attempt to diversify revenue sources.  “The test for a smooth devolution of services lies in effectively keeping the water running,” said Apurva Sanghi, Acting Country Director, World Bank, Kenya.

He said while transforming existing systems and approaches, it is incumbent on county and national leaderships and water sector professionals to take care not to put service delivery at risk.

Devolution process

This, he added, includes dealing with inter-county water issues, and the complex issues around the role of water boards.  “Kenya’s devolution process is far-reaching and ambitious.  It has huge implications for the country’s overall system of governance, and requires a major overhaul of service delivery sectors like health and water and sanitation,” Sanghi stated.

Sanghi spoke on on Tuesday in Nairobi when the Ministry of Environment launched a policy note on devolution of water services delivery.

The Cabinet Secretary, Ministry of Environment , Water and Natural Resources, Judy Wakhungu (pictured), said water is a basic resource and counties should not deny neighbouring counties access to the resource. Murang’a County has been pushing to get what it says is value for the water held at the Ndakaini Dam – in Gatanga – which is the key source of water for Nairobi County. 

The county government has in the past argued that Murang’a has no other natural resources and hence the reason it should get a fair return on the water.

Nairobi residents

Ndakaini Dam, with a capacity of 70 million cubic metres, is a key source of water for Nairobi residents, accounting for upwards of 80 per cent of the water consumed in the city. Such a move could see a rise in the cost of water in Nairobi, which is already scarce.

Residents have had to do with intermittent supply while low-income areas have been compelled to source water from unscrupulous traders.

Sanghi said access to water and sanitation is essential in tackling poverty in the country.

 He observed that World Bank sees water sector reform as integral to our core goals of eradicating poverty and achieving shared prosperity.