Kenya's water regulator, the Water Services Regulatory Board (WASREB), recently released its Impact 18 Report, revealing that non-revenue water has climbed to 48%. This means that nearly one in every two liters of clean water pumped into distribution networks disappears before reaching a paying customer. The annual cost of this loss is approximately Sh13.7 billion. This money could have been used to fund new boreholes, replace pipes, or upgrade struggling utilities.
The Ministry of Water, Sanitation and Irrigation has earmarked close to Sh1 trillion to get piped water into every home by 2030. The plan includes the installation of smart meters and digital leak-detection tools. While this investment is necessary, it may not be enough to address the problem. The missing 48% of water is not just lost due to infrastructure issues but also due to a lack of trust in the sector. Trust is essential in allowing technicians to make decisions and take action to fix leaks and other issues.
A survey of 368 employees across 13 public water and sewerage companies was conducted over four years to identify the factors that separate high-performing water companies from low-performing ones. The survey found that the strongest predictor of performance was whether ordinary employees were trusted to make decisions. Companies that empowered frontline staff to solve problems on the spot outperformed those that required every decision to go up the chain and back down again.
The survey also found that leadership style had a minimal impact on performance. Leaders who were consistent, principled, and led by example showed almost no measurable effect on performance once other factors were accounted for. This suggests that building respect through good leadership is not enough to address the trust issue in the water sector. Instead, utilities need to focus on empowering employees to make decisions and take action.
The trust issue in the water sector is not just a matter of employee empowerment but also of institutional culture. Many utilities have approval chains that require multiple signoffs, which can delay decision-making and action. These chains often exist out of habit rather than necessity and can be streamlined to improve performance. By delegating real authority to employees, utilities can improve their performance and reduce non-revenue water.
To address the trust issue, water sector boards and regulators could measure leaders on their ability to delegate authority. Utilities could also audit their approval chains and ask whether they are necessary. Leadership training budgets could be shifted to focus on practical training in handing over real authority without feeling like losing control. These changes can be implemented immediately and do not require the Sh1 trillion investment.
The water sector's trust issue is a complex problem that requires a multifaceted solution. While investment in infrastructure is necessary, it is not enough to address the problem. The sector needs to focus on building trust and empowering employees to make decisions and take action. By doing so, utilities can improve their performance, reduce non-revenue water, and provide better services to customers.
Key points
- The trust issue in Kenya's water sector is a major contributor to non-revenue water, with 48% of treated water lost due to leaks, illegal connections, and billing failures.
- Empowering frontline staff to make decisions and take action is a key factor in improving performance in the water sector.
- Leadership style has a minimal impact on performance in the water sector, and instead, utilities should focus on building trust and delegating authority to employees.
