An Investigation into the role of governance in non - revenue reduction water among water service providers in Kenya

Abstract

This study investigated the role of governance in reducing Non-Revenue Water (NRW) among the water service providers (WSPs) in Kenya. Non-revenue water, which refers to the significant amount of water lost within water utilities, presents severe challenges to operational efficiency and financial sustainability. Because over half of the water produced in Kenya is lost, there are profound economic implications, with some utility recovery at a rate as low as 2% of the operational costs. Therefore, this study filled a noticeable gap in research concerning the governance factors that can influence the management of non-revenue water in the Kenyan context. The study established three primary objectives: to examine how regulatory frameworks influence NRW levels, determine the effect of institutional accountability on NRW, and evaluate the influence of leadership commitment on non-revenue water for water utilities in Kenya. To achieve these objectives, the study adopted quantitative approaches, including an exploratory research design incorporating insights from WSP staff. The primary data was collected using survey questionnaires issued to senior-level water utilities staff. The findings of the data re expected to provide actionable recommendations for policymakers and regulators that helped enhance water service efficiency and sustainability in Kenya. Additionally, the study addresses the persistent challenges in managing NRW and improving the financial viability of water utilities in the face of increasing water demand and climate variability. The findings revealed that governance plays a significant role in NRW reduction among Kenyan water utilities. Descriptive statistics indicated that regulatory frameworks, institutional accountability, and leadership commitment all positively contribute to NRW management, with institutional accountability showing the highest influence. Correlation analysis confirms strong positive relationships between these governance factors and NRW reduction effectiveness. Regression analysis further supports this, with an overall model explaining the variance in NRW reduction. Among the individual predictors, institutional accountability has the strongest impact, followed by leadership commitment and regulatory frameworks. Additional diagnostic tests confirmed the reliability of the model, showing no significant issues with normality, multicollinearity, heteroscedasticity, or autocorrelation. Thus, Water utility managers should enhance institutional accountability, leadership commitment, and technology adoption to improve NRW reduction, alongside fostering stakeholder engagement and performance-based incentives. Policymakers must strengthen regulatory enforcement, promote smart water management technologies, encourage public-private partnerships, and raise consumer awareness to support sustainable NRW reduction efforts. Future research should conduct a comparative analysis of WSPs in Kenya to better understand the factors contributing to varying levels of NRW, investigate the effectiveness of emerging technologies, and socio-economic factors influencing NRW management in Kenyan utilities.