Eldoret Water & Sanitation Company Ltd (Eldowas) is set to make history as the first water utility company in Kenya to test the market with water bonds.

The company has announced plans to issue a green bond, signalling its commitment to sustainable water management and environmental conservation.

As one of Kenya’s leading water and sanitation service providers, Eldowas aims to raise funds through the green bond offering to finance projects that promote water conservation, improve water quality, and expand access to clean water for the communities it serves.

This innovative move reflects the company’s dedication to addressing the pressing challenges of water scarcity and its vision for sustainable water infrastructure development.

“As the vice chair of the Water Service Providers Association (WSPA), I have been able to engage the government over the same issue, I am happy that Eldoret Water is the pioneer. I have engaged with the PS of

water, every time I meet him he tells me to make sure that the initiative works,” said Michael of Mangeli of WSPA said during an investor meeting yesterday.

Water fund initiative

Water Service Providers (WSPs) were allowed by the government to float a bond in the local market in

a second attempt after the Kenya Pooled Water Fund Initiative (2018 to 2022) proved unsuccessful.

There are concerns that Kenyans will need to brace for an upward review of water tariffs to cover the repayments of the debt. Currently, WSPs generate Sh21.8 billion in tariff revenue of which Sh11.6 billion is gobbled up by staff expenses.

The decision to issue green bonds comes amid growing global concerns about climate change and water stress.

Investors are increasingly seeking opportunities to support projects that have a positive impact on the environment and contribute to sustainable development.

Eldoret water firm set to tap into green bond market