Knowledge Note

In 2009, the Government of Kenya (GoK) requested PPIAF support to assess four water utilities in Kenya. The objective was to provide borrowers and lenders with an overview of the creditworthiness of water service providers to support access to local currency fi nancing from the domestic financial market. PPIAF and the Water and Sanitation Program (WSP) conducted these credit rating assessments through the Sub-National Technical Assistance Program. At the conclusion of the credit assessment, the Embu Water and Sanitation Company Limited (EWASCO) was one of the BB-rated utilities, defined as being likely to fulfill financial obligations with small improvements in some fi nancial and operating performance indicators. In 2014, following this result, EWASCO received $1 million in commercial financing toward the construction of a 17-kilometer water pipeline that is expected to expand connectivity to 6,000 households and approximately 100 schools in Embu County.