Financing Municipal Water and Sanitation Services in Nairobi’s Informal Settlements
This study estimates the impacts of two interventions implemented as field experiments in informal settlements by Nairobi’s water and sanitation utility to improve revenue collection efficiency and last mile connection loan repayment: (i) face-to-f...
Main Authors: | , , , |
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Format: | Working Paper |
Language: | English |
Published: |
World Bank, Washington, DC
2021
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/426361625154900815/Financing-Municipal-Water-and-Sanitation-Services-in-Nairobi-s-Informal-Settlements http://hdl.handle.net/10986/35912 |
Summary: | This study estimates the impacts of two
interventions implemented as field experiments in informal
settlements by Nairobi’s water and sanitation utility to
improve revenue collection efficiency and last mile
connection loan repayment: (i) face-to-face engagement
between utility staff and customers to encourage payment and
(ii) contract enforcement for service disconnection due to
nonpayment in the form of transparent and credible
disconnection notices. While there is no effect of the
engagement, the study finds large effects of enforcement on
payment. There is no effect on access to water, perceptions
of utility fairness or quality of service delivery, on the
relationships between tenants and property owners, or on
tenant mental well-being nine months after the intervention.
To counterbalance the increase in payments, property owners
increased rental income by renting out additional space.
Taken together these results suggest that transparent
contract enforcement was effective at improving revenue
collection efficiency without incurring large social or
political costs. |
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