Nairobi — K-Rep Bank has unveiled a multi-million shilling water supply financing initiative aimed at developing a market-based alternative for funding in the sector.

The programme, known as Maji ni Maisha, blends a market-based credit model with subsidies.

K-Rep managing director Kimanthi Mutua said the bank has committed Sh110 million for 21 schemes in Kiambu, Thika, Kajiado, Makueni and Machakos in the pilot phase.

Out of this commitment Sh71 million has been disbursed to 11 water schemes, where the communities are now enjoying access to clean, piped and metered water.

"Given the success of the pilot phase, K-Rep Bank is now expanding the credit to other areas in Kenya with an allocation of additional funding of Sh250 million," said Mr Mutua.

The initiative is aimed at having far-reaching benefits to Kenyans through a model that provides finance to community groups who are both in need of water and are eligible for the funding.

The programme comes at a time when the country is facing a major water crisis.

The project was initially piloted in collaboration with Athi Water Services Board and the World Bank's Water and Sanitation Programme under Global Partnership on Output Based Aid which has been providing co-finance since 2007.