Factors Affecting Water Service Delivery by Public Utilities in Urban Areas in Kenya: A Case Study of Nairobi City Water and Sewerage Company

Access to water has been considered an essential human right. However, the issue of equal provision to all is still a challenge in many cities because of the differences in the socio-economic status within different urban settlements. This study analyzed the determinants of water service delivery in high-income, middle-income, and low-income urban settlements in Nairobi, which are served by NCWSC and supply approximately 82% of the water requirement of Nairobi City. Primary data from NCWSC, specific to the seven service regions by the company: the Central Business District (CBD), the Eastern Region, the Northern Region, the North Eastern Region, the Southern Region, the Western Region, and the Informal Settlements was used. Since the 7 regions are further subdivided into 28 zones by NCWSC, the study sampled 12 zones and categorized them into high-income, middle-income, and low-income settlements. Primary data from the company’s records from 2013 to 2023 was analyzed using 6 key datasets: Quantity of Water Supplied (QWS), Revenue Collection Efficiency (RCE), Operating Expenses (OE), Number of Metered Connections (NMC), Non-Revenue Water (NRW), and Maintenance Frequency (MF). Using the Water Supply Reliability Theory, the study borrowed the concepts of system reliability, financial efficiency, and operational effectiveness to achieve the objectives. Panel regression fixed effects model was used to determine the relationship between the dependent variable and independent variables. The results from the study revealed significant and varying effects of the independent variables: revenue collection efficiency (RCE), operating expenses (OE), number of metered connections (NMC), non-revenue water (NRW), and maintenance frequency (MF) to the dependent variable, quantity of water supplied (QWS). MF was dropped during the analysis due to a high multicollinearity problem. The findings of the study revealed a consistent increase in water supply in high-income areas, while middle- and low-income regions experienced fluctuations throughout the period. In high-income areas, OE had a positive effect on the QWS, while RCE, NMC, and NRW had no significant impact. In middle-income areas, RCE showed a strong negative effect, pointing out financial limitations in effective water service delivery, whereas OE showed a positive effect on the QWS. NMC also had a negative significant impact, pointing out the capacity limitation problems. NRW had no significant impact on the QWS. In low-income areas, RCE and OE depicted a negative impact on QWS, revealing inefficiencies in financial resource allocation and sustainability concerns, while NMC and NRW had no significant effect on the QWS.