April 9th, 2026

The Nanyuki Bulk Water Project is a flagship investment under FSD Kenya’s County Green Preparation Facility, demonstrating how sustained project preparation can unlock climate-resilient infrastructure with strong economic, inclusion, gender and capital-market impacts.

The project was originally conceptualised in 2017, when Atkins undertook the initial feasibility studies and environmental and social impact assessment, on behalf of Nanyuki Water and Sanitation Company (NAWASCO) establishing the technical and safeguards foundation for the investment.

Building on this groundwork, the project is now being advanced under the County Green Preparation Facility, launched in 2023, with updated technical, environmental and financial work to reflect current costs, regulatory requirements and climate risk considerations. Under the Facility, Howard Humphreys is supporting the updating of technical studies and environmental and social documentation, while PwC is acting as the technical and transaction partner, leading project structuring, financial modelling and investment readiness. This progression illustrates the County Green Preparation Facility’s role in taking long-standing county priorities from concept to bankability.

Located in Nanyuki and serving the wider Laikipia County, the project addresses a persistent structural water deficit that has constrained household welfare, enterprise growth and service delivery. The bulk water system is designed to supply reliable water to approximately 23,000 households, alongside public institutions and an estimated 3,000–5,000 micro, small and medium enterprises. Key beneficiary sectors include hospitality and tourism, irrigated agriculture and livestock, agri-processing, food and beverage manufacturing, health and education facilities, and emerging urban real estate developments supporting Nanyuki’s rapid population growth.

The employment impact is material. During construction, the project is expected to generate 1,300–1,500 direct and indirect jobs across civil works, materials supply, logistics and professional services. Over the longer term, improved water reliability will support thousands of sustained jobs across tourism, agriculture, light manufacturing and services by reducing operational risk and enabling business expansion. Reliable bulk water supply also unlocks new residential developments, supporting planned urban growth as the population is projected to exceed 300,000 residents by 2040.
From a financial inclusion and financial health perspective, the project reduces reliance on informal and high-cost water sources, lowering household expenditure volatility and improving budgeting and payment discipline. For enterprises and farmers, predictable water supply stabilises production and revenues, improving cash flows and creditworthiness. At the utility level, the project is expected to drive 30–40 percent revenue growth for NAWASCO, alongside reductions in non-revenue water, strengthening operational sustainability and balance-sheet resilience.

With total capital requirements estimated at over KES 5 billion, the project also creates a pathway for innovative local capital-market solutions. As NAWASCO’s financial position strengthens, the investment opens the potential for the utility to issue a green bond, leveraging strong market interest in tax-exempt green bonds in Kenya. Such an issuance would crowd in domestic institutional capital, lower the cost of finance and lengthen tenors for climate-aligned infrastructure. This directly complements FSD Kenya’s work with the NSE Sustainability Centre of Excellence to build a credible sustainability segment and deepen Kenya’s green capital markets.

Looking ahead to 2026, the project will move into the final phase of preparation. This will include completing the updated feasibility study, full Environmental and Social Impact Assessment (ESIA), investment memorandum and financial model, positioning the project for financial close. These steps are essential to securing approvals, engaging investors and lenders, and mobilising the green finance required to commence development. By progressing decisively from preparation to financing, the Nanyuki Bulk Water Project will transition from a bankable opportunity into an investable asset, enabling construction to begin and delivering long-term water security, inclusive growth and climate resilience for Laikipia County.

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