Stephen Macharia from Equity Bank (one of Kenya's biggest financial institution) gives an overview of the bank's partnership with Water.org for the provision of loans for water and sanitation.

1. Equity Bank Limited
Presentation
Stephen Macharia
GM- Market Research & Product
Development
16.05.2014

2. EQUITY BANK

3. THE PURPOSE
We exist to transform the lives and
livelihoods of our people socially and
economically by availing them modern,
inclusive financial services that maximize
their opportunities.
2

4. MISSION STATEMENT
We offer inclusive, customer focused
financial services that socially and
economically empower our clients and
other stakeholders.
4

5. Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other
stakeholders.
WATER & SANITATION SITUATION
IN KENYA
Kenya is considered as a water-scarce country with less than
647 cubic meter of water available per capita compared to the
international benchmark of 1000 cubic meters per capita.
Only 9 out of 55 water service providers in Kenya provide
continuous water supply. Seasonal and regional water scarcity
aggravate the difficulty to improve water supply.
Research conducted in the country have revealed a Water
demand of up to 70% in some of its regions.

6. Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other
stakeholders.
The Government is unable to meet this huge demand and
therefore the Ministry of Environment, Water and Natural
Resources has invited Public Private Partnerships (PPP) to
complement the government’s efforts in increasing access
to Water.
On the other hand about 62% of the population has no
adequate access to improved sanitation.
WATER & SANITATION
SITUATIONAL
IN KENYA (2)

7. Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other
stakeholders.
EQUITY BANK WASH PROGRAM
Equity Bank entered into partnership with Water.org-USA in
September 2011 to develop credit products and offer
banking acquisition towards solutions to water and
sanitation.
In this context, the Bank received a financing of USD
395,478 from Water.Org to stream line financial services
and lending structures for Water and Sanitation in the
region.
The Bank’s Research and Credit departments commissioned
a market demand study in December 2011 within the 8
former provinces in the Kenya.

8. Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other
stakeholders.
EQUITY BANK WASH PROGRAM
The study sought to try and understand :
 The situation on the ground in regard to water
usage, access, sufficiency, perceptions and future plans
for improvement.
 Understand the usage and perceptions towards
Sanitation.
 Identify availability, usage and attitudes towards
financial support available for acquisition and
improvement of the Water and Sanitation situation.

9. Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other
stakeholders.
WHY WATER CREDIT
1. Dwindling donor funds
2. Reduced ownership of donor funded community
projects
3. No prior focus on private owned interventions
4. Inadequate resource allocation to Water and Sanitation
by the Exchequer Vis avis growing population.
5. (Water Services Regulatory Board, WASREB estimates
that 40 Billion Ksh need to be pumped to the Water
and Sanitation sector every year for the next 10 years
to normalize this trend).
6. Huge business opportunities in the Water and
Sanitation sectors

10. WASH PRODUCTS
Equity Bank developed two broad products to address the gaps in
WASH. The products were:
Maji loan
This is a funding acquisition of various water related interventions
such as:
•Rain water harvesting (roofing& gutters)
•Water storage (Water tanks, water pans, and dams)
•Well digging
•Sinking of boreholes and Bore-wells
•Water pumps and accessories’ financing
•Connections where there is a ready source of water
• Business finance for authorized water merchants and vendors
•Water purification and treatment plants/ systems

11. WASH PRODUCTS (2)
Jamii safi loan
This is a Credit product specifically designed to cater for
investments towards access or improvement of Sanitation
such as:
1. All types of toilets/Latrines – Construction and
improvement
2. Installation of Biogas digesters and stoves
3. Construction of septic tanks and Conservancy tanks
4. Connection to sewer lines
5. Exhauster trucks

12. OTHER PROGRAM PARTNERS
Equity Bank Water & Sanitation Program has built several
partnerships with suppliers and service providers to ensure
smooth delivery of services to the customers, e.g:
1.Roto Moulders - Supply of Water storage Tanks
2.Top Tanks - Supply of Water Storage Tanks
3.Kentainers - Supply of Water Storage Tanks
4.Umande Trust - Construction of Bio-sanitation facilities

13. INNOVATIVE FINANCING MODELS
EBL is building synergies with other partners to develop
innovative financing models.
Examples of these are as follows:
1.Aid On Delivery with KfW (German Bank) and WSTF with
rebates of 40% to Water Service Providers and/Water
Companies
2.Output Based Aid with World Bank’s Water & Sanitation
Program
3.Guarantee funds for people in Low income areas
4.Group guarantees
5.Chattels guarantees

14. Current Program Loan Analysis
As at now, 93% of loans disbursed are Maji loans with an
average loan Size of Ksh. 30,000 (USD353). Sanitation
Loans stand at 7% but have a bigger average loan size of
Ksh. 40,000 (USD 470)

15. CHALLENGES FACED
 Difficulty in Marketing sanitation due to cultural barriers-
e.g. In some places in the country, shit is never mentioned; Shit
from children is not considered harmful
 People do not understand the direct economic benefit of good
sanitation- in monetary terms.
 Other more pressing needs such as food, school fees etc. that
place sanitation as secondary to other needs thus less prioritized.
 Limited reinforcement from Public Health Department in some
areas.
 High risk of lending especially to low income earners prompting
financial institutions to raise interest rates to counter the risk.

16. SUPPORT NEEDED
1. Support is required in triggering demand/Marketing
Sanitation: Selling the benefits of good sanitation.
2. Donors to provide Loan loss guarantees especially to
people living in low income areas to facilitate
financial institutions to offer loans at affordable
rates.
3. Government to formulate and implement policies
that make it mandatory for every homestead to have
a sanitation facility for safe disposal of human
waste.

17. THANK YOU

18. QUESTIONS

19. THANK YOU
Email: Stephen.Mwaniki@equitybank.co.ke
Web site: www.equitybank.co.ke