The government is to start expansion of water and sanitation services in Iten town at a cost of Sh2 billion. CEO of the Iten-Tambach Water Services Company Simon Kiplagat said preparations are being finalised by the National Treasury.
The Belgium government has already released the funding for the project which will help to ease water probelms for the town that has more than 100,000 residents.
Under the agreement, 65 per cent of the money will be a grant while the rest will be a repayable loan.
"The government has negotiated for good terms which will largely be a loan to be repaid within the time to be agreed on," said Kiplagat who was speaking in his office during a courtesy call by a team from the Radio Africa Group led by Bussiness Development Manager Cornelius Muli.
Muli said the supply of water services in the town has been improved by his company in the last few months.
He said the company collects more than Sh1 million from consumers every month. The water tariffs in Iten were increased by more than 100 per cent early this year but Kiplagat said residents currently enjoyed better services..
Several towns will benefit from loans by donors to improve water services as part of a plan for the sector in Kenya. The government will use Sh350 billion to implement the plan in five years.
The main donors include the World bank, the German and Belgium governments. Donors have pledged to give more than half of the money for projects which will increase access to clean water to more than 85 per cent from the current 65.
The donors are interested in the conservation of the environment especially the water towers.
The government has implemented key reforms and put in place strong institutions to help manage the available water resources. Water supply in major towns like Nairobi, Mombasa, Kisumu and Eldoret will be upgraded to improve efficiency.
In Eldoret the World Bank has given Sh 1.7 Billion to help expand water treatment services. Kiplagat said the main source of water for the project will be located in Kaptagat forest and the water will be spplied to the town via gravity.