Abstract:
The role played by Public-Private Partnerships (PPPs) in infrastructure and service
provision globally continues to take root. This is demonstrated by the numerous
projects that have been initiated through Public-Private Partnerships in both
developed and developing states. PPPs make a vital contribution towards narrowing
the gap in infrastructure and service provision through effective management,
funding, resource allocation and expertise. Despite this, developing countries such as
Kenya are yet to bridge the gap in service delivery, especially water service delivery
for its urban areas, which are characterized by high population growth and limited
resources compared to the rural areas. The study aimed to examine PPPs as a strategy
in water service delivery for urban areas in Kenya. The study employed the agency
theory, public choice theory and game theory. The study focused on Kayole Soweto
area and Maji Mashinani as its case study design. The study population was 135
households in the Kayole-Soweto area. The study also targeted 4 experts in the Maji
Mashinani PPP project as well as PPP project consultant. Simple random sampling
was used to select 100 household heads in Soweto Kayole area. Purposive sampling
of all the 4 at Maji Mashinani PPP was conducted. The study applied a survey sampling method and used questionnaires and interview guides as an instrument of
data collection. The questionnaires and interview guides consisted of both open-ended
and closed ended questions. A mixed methods approach was used, and data presented
through tables, pie charts, bar graphs, and a histogram. The study revealed that
implementation of public-private partnership strategy, viability of public-private
partnership and challenges in the implementation of PPPs explain 48 percent of the
variations in the dependent variable which is water service delivery. The study found
that there is potential in PPPs as strategies in filling the water service delivery gap for
urban areas in Kenya. However, this has not fully been achieved and has a long way
to go. Regression analysis results shows that public-private partnership and water
service delivery is positively and significantly related (r=0.291, p<0.05). The results
further indicate that the viability of public-private partnerships and water service
delivery is positively and significantly related (r=0.262, p<0.05). It was further
established that challenges in the implementation of PPPs and water service delivery
are negatively and significantly related (r=-0.228, p<0.05). Arising from the study, it
can be concluded that the most favored model for PPPs in water service delivery for
urban areas in Kenya is the Output-Based Aid because it is designed to be pro-poor
populations such as Kayole-Soweto where the study was carried out. Some of the
factors considered as criteria for projects suitable for PPPs to be engaged include the
size of the budget, level of expertise required and risks and mitigation which should
be shared based on the capability of the parties in the partnership. The study also
concluded public-private partnership in the water sector enhances access to quality
and adequate. The quality of water significantly improved as a result of the PPP water
project; the cost for water per household significantly decreased resulting to enhanced
water access by households. This study recommended that beneficiary orientation
should be a priority in PPPs planning phase and therefore include not only landlords
but also tenants; clear communication channels should be developed to enhance
efficient and effective monitoring and evaluation. While the influence of PPPs seems
to be widespread in bridging the gap in water service delivery, its presence in most
urban areas remains elusive.