This paper considers how the government of Kenya’s plans to
privatize water supplies in urban areas could ensure that the needs of those living
in informal settlements and of others with inadequate water provision are served.
The need for reform in the water sector is evident from the years of poor performance
and the growing numbers lacking piped provision. The government has chosen
privatization as the main policy direction. However, privatization can cause the
needs of the unserved and of low-income groups in general to be ignored. This paper
discusses various policy options to secure advantage for these groups, within the
framework of a privatized water sector. These include participatory sector planning,
social tarification, contractual clauses, water trust funds and support for alternative
water suppliers.