Importance of Regulation Print E-mail

Why Regulation?

Background:

(a) Importance of water
Water contributes to economic productivity, social welfare and the health of human beings. 
Demand for water in Kenya  is increasing due to:

  • Population growth
  • Urbanization
  • Industrialization
  • Agricultural activity

Daily human life is built and shaped by water.  Millennium Development Goals set specific targets towards reducing poverty, hunger, and disease.  Among these targets, governments agreed to reduce by half the proportion of people without access to safe drinking water by 2015.

(b) Kenya’s situation
Water is not enough. Currently, its only at 647 cubic metres per person.  The global requirement is 1,000 cubic metres per person. Demand for water outstrips supply. Water is now a human right under the constitution, everybody must access it.

(c) What is the solution?
1. Regulation- regulate the little there is to reach everybody
2. Conservation - Using less water;  using water carefully
3. Commercialisation- need to make provision of water services sustainable

Regulation exists to ensure:

  • Efficiency (providers operating well, with minimal waste)
  • Sustainability (support to ensure the service is there tomorrow; includes financing provider’s operations, cost recovery, adequate return on capital to allow for the required future investment.)
  • Affordability ( those who cannot afford should not be denied)
  • Fair distribution of water. Operators observe common rules, common standards,
  • Fair pricing
  • Good quality
  • Protection of consumers from exploitation, uneven practices

How does regulation benefit consumer?
Regulation exists for the sole purpose of protecting the consumer (from lack of water, poor pricing, poor access, irregular supply etc).
What are the functions of the Regulatory Board?

  • Licence Water Services Boards
  • Define standards
  • Monitor performance
  • Establish the standards
  • Advise minister on water policy