Over the decades privatization has become a predominant paradigm in the provision
of water both in the global North and South (Hukka, 2003). In the context of the
latter, this chapter presents Kenya as a case study where experiments with the
privatization of water began way back in 1995 (see K’Akumu and Appida, 2006).
Seven years down the line, in 2002, a major law was passed as a reform package
to provide the enabling environment for water privatization and marketization
among other things (see Republic of Kenya, 2002). Specifically, the law is
divided into two main parts: Part III – dealing with Water Resources Management
and Part IV – dealing with Water Supply and Sewerage services (K’Akumu,
2008). However this chapter only deals with the latter and particularly tackles
privatization of the urban water supply.
The chapter proceeds in two parts. The first part deals with the issues that
initially drove the privatization project. At the international level, difficulties in
provision in low- and middle-income nations have been cited as the main drivers
of privatization. Nevertheless, for the case of Kenya, other issues were also at
play including an increasing urban population, under-served slum areas, and
the outbreaks of waterborne diseases. It is also worth noting that privatization
can proceed in different ways based on different models (see Harris’s framing
piece, Chapter 10). The Kenyan project culminated into the ‘Public Limited
Company’ (PLC) model following the initiatives of the ‘Northern-based’ German
development partners.