Financing Municipal Water and Sanitation Services in Nairobi’s Informal Settlements

Details

Research Team

Aidan Coville, Sebastián Galiani, Paul J. Gertler, Susumu Yoshida

Topic

Water, Sanitation, and Hygiene (WASH)

Publication

Journal publication

Country

Kenya

Region

Africa

Tags

enforcement, financial sustainability, informal settlements, water and sanitation

Study Overview

We test two ways to improve revenue collection efficiency for water and sanitation utilities: (i) face-to-face engagement between utility staff and customers and (ii) contract enforcement for service disconnection due to nonpayment in the form of transparent and credible disconnection notices. Engagement has no effect, while enforcement significantly increases payment.

Study Results

We find no effect on access to water, perceptions of the utility, relationships between tenants and property owners, or on tenant mental well-being nine months after the intervention. These results suggest that transparent contract enforcement was effective at improving revenue collection efficiency without incurring significant observed social or political costs.