DSIF Supports Kenyan Water Infrastructure with Danish Expertise

Deal News | May 15, 2025 | Investment Fund for Developing

DSIF Supports Kenyan Water Infrastructure with Danish Expertise

The Danish Danida Sustainable Infrastructure Finance (DSIF), managed by the Investment Fund for Developing Countries (IFU), is providing substantial financial aid to the Kenyan Ministry of Finance and National Treasury for water and sanitation infrastructure projects in Southern Kenya. The project, owned by Athi Water Works Development Agency (AWWDA), aims to address the dire water and sanitation needs driven by Kenya's population growth and climatic challenges. DSIF's Danish Krone (DKK) 486 million grant will partly cover a Danske Bank loan and fund technical assistance for these crucial infrastructure undertakings. Danish water experts PEMconsult, SUEZ, and consultancy firm COWI are presently offering technical support. The procurement process is underway, inviting Danish contractors or joint ventures to partake in construction-related tasks. Scheduled developments include the construction and upgrading of treatment plants and distribution systems in Thika and Githunguri, aiming to significantly improve water access and sanitation by 2030. The project's alignment with Kenya's Vision 2030 and its potential to create job opportunities highlights the strategic significance of this initiative.

Sectors

  • Infrastructure Development
  • Finance
  • Environmental and Water Technology

Geography

  • Kenya – The infrastructure projects discussed are located in Kenya, specifically impacting towns like Thika and Githunguri.
  • Denmark – Denmark is involved through financial and technical support from institutions like DSIF and IFU.

Industry

  • Infrastructure Development – The article discusses development projects focused on water and sanitation infrastructure in Kenya.
  • Finance – Involves financial activities originating from the Danish DSIF and IFU for subsidies and loans.
  • Environmental and Water Technology – The projects relate to water distribution and sanitation, a core part of environmental technology.

Financials

  • DKK 486 million – Grant provided by DSIF to cover loan interest, financial costs, and technical assistance.
  • DKK 1.126 million – Estimated total cost of the water and sanitation infrastructure project.

Participants

NameRoleTypeDescription
Danida Sustainable Infrastructure Finance (DSIF)Financial SupportCompanyA Danish financial entity providing subsidized loans and grants for infrastructure projects.
Investment Fund for Developing Countries (IFU)Manager of DSIFCompanyA Danish investment firm managing the funds provided by DSIF.
Kenyan Ministry of Finance and National TreasuryFunding RecipientGovernmentThe Kenyan government body receiving financial support for infrastructure projects.
Athi Water Works Development Agency (AWWDA)Project OwnerGovernmentA Kenyan government agency overseeing the water and sanitation projects.
PEMconsultTechnical ConsultantCompanyA Danish company providing technical support for the project.
SUEZTechnical Support ProviderCompanyA French firm offering technical support to enhance project capacity.
COWIConsultancyCompanyA Danish company tasked with design and supervision of the projects.