Co-op bank lends Sh4.39bn to water projects
Co-operative Bank of Kenya has disbursed Sh4.39 billion in loans to support water and sanitation projects between March 2023 and August 2026, surpassing its initial Sh3 billion target under a partnership with Water.org.
The bank received the Leadership in Water Infrastructure and Finance Award at the Africa WaterCredits Forum 2026, held in Nairobi on October 16, in recognition of its contribution to financing water-related businesses and infrastructure.
The funding was provided through the bank’s Co-op A Maji product, which enables water service providers, individuals, small businesses and institutions to obtain loans for investments in water supply and sanitation facilities.
Eligible investments include water storage tanks, solar-powered pumps, water connections, exhausters, water bowsers and smart meters. These technologies and facilities support water distribution, storage, sanitation services and improved management of water supplies.
The partnership between Co-operative Bank and Water.org began in 2023 with a three-year target of mobilising more than Sh3 billion for water, sanitation and hygiene (WASH) financing. The initiative also aimed to improve access to services for more than 110,000 people.
The reported disbursement of Sh4.39 billion represents an increase of Sh1.39 billion above the original lending target, highlighting the demand for financing among customers investing in water and sanitation services.
Co-operative Bank Group Managing Director and Chief Executive Officer Gideon Muriuki said financing was critical to expanding reliable water and sanitation services, noting that innovative lending approaches could help turn infrastructure plans into functioning facilities.
Access to finance remains a major challenge for Kenya’s water sector, where utilities, community water providers and small businesses require investment to expand networks, acquire equipment and improve service reliability. Public funding alone cannot meet all infrastructure needs, making commercial lending and development partnerships important sources of additional capital.
Water and sanitation financing also supports economic activity beyond the utilities themselves. Small businesses can invest in water delivery, storage and sanitation equipment, while institutions and households can improve their access to reliable supplies. For water service providers, investment in modern equipment can help strengthen distribution systems and improve the monitoring of water use.
Solar-powered pumps can reduce reliance on conventional energy sources in areas where electricity supply is limited or costly. Smart meters can improve the measurement of consumption and support more accurate billing, while storage tanks and water bowsers help move and retain supplies where distribution infrastructure is inadequate.
However, the long-term impact of such investments depends on proper maintenance, sound financial management and responsible water-resource use. Financing infrastructure must go hand in hand with ensuring that water sources remain sustainable and that facilities continue operating after installation.
The Africa WaterCredits Forum brings together financial institutions, water utilities and development partners to discuss ways of expanding investment in water and sanitation across the continent. The event provides a platform to examine lending models, financing partnerships and approaches that can make water-related investments more accessible to businesses and communities.
Co-operative Bank’s reported lending performance highlights the role commercial banks can play in complementing public investment and supporting the expansion of water and sanitation services. Continued collaboration between financial institutions, development partners and water-sector agencies will be important in directing funding towards underserved communities and strengthening Kenya’s progress towards universal access to safe water and sanitation.
