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Water for the urban poor: Balancing financial and social objectives through service differentiation in the Kenyan water sector

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  • Schwartz, Klaas
  • Tutusaus, Mireia
  • Savelli, Elisa

Abstract

Kenyan water utilities face a challenge of balancing the financial objective of commercial viability with the social objective of service expansion. To achieve this, they employ service differentiation in which different categories of consumers receive different levels of service. Although service differentiation has achieved results, it reflects a prioritization of financial objectives over social objectives and raises three particular concerns. First, service differentiation reflects a withdrawal of the utility from core service provision responsibilities. Second, it results in inequitable service provision. Finally, it may lock low-income consumers into a low level of service.

Suggested Citation

  • Schwartz, Klaas & Tutusaus, Mireia & Savelli, Elisa, 2017. "Water for the urban poor: Balancing financial and social objectives through service differentiation in the Kenyan water sector," Utilities Policy, Elsevier, vol. 48(C), pages 22-31.
    • Handle: RePEc:eee:juipol:v:48:y:2017:i:c:p:22-31
    DOI: 10.1016/j.jup.2017.08.001
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    References listed on IDEAS

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    Cited by:

    1. Akosua Sarpong Boakye-Ansah & Klaas Schwartz & Margreet Zwarteveen, 2019. "From Rowdy Cartels to Organized Ones? The Transfer of Power in Urban Water Supply in Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1246-1262, December.
    2. Boakye-Ansah, Akosua Sarpong & Schwartz, Klaas & Zwarteveen, Margreet, 2020. "Aligning stakeholder interests: How ‘appropriate’ technologies have become the accepted water infrastructure solutions for low-income areas," Utilities Policy, Elsevier, vol. 66(C).
    3. Christine Mawia Julius & Timothy C. Okech, 2021. "Moderation Effect of Government Regulation on the Joint Influence of Water Pricing, Infrastructure Financing, Utility Efficiency and Subsidies on Financial Sustainability of Water Service Providers in," International Journal of Economics and Financial Issues, Econjournals, vol. 11(3), pages 72-80.
    4. Nilsson, David & Blomkvist, Pär, 2021. "Is the self-read water meter a pro-poor innovation? Evidence from a low-income settlement in Nairobi," Utilities Policy, Elsevier, vol. 68(C).
    5. Blomkvist, Pär & Nilsson, David & Juma, Benard & Sitoki, Lewis, 2020. "Bridging the critical interface: Ambidextrous innovation for water provision in Nairobi's informal settlements," Technology in Society, Elsevier, vol. 60(C).

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