Cost recovery for piped rural water supply systems in developing countries: Case studies from Kenya, Rwanda and Uganda

There has been increased rural water supply coverage. However, at any one time there are a number of piped rural water supply systems that are not functioning. One of the reasons attributed to this is poor cost recovery in the water supply systems. The main aim of the study was to investigate and evaluate cost recovery in piped rural water supplies and identify ways of improving to contribute to sustainability. To explore cost recovery in piped rural water supply systems, a case study approach was undertaken covering six water supply schemes in Rwanda, Kenya and Uganda. Literature review, semi-structured interviews, focus group discussions, observation and document analysis were used to collect data. Findings showed that tariffs were set by water supply design consultants and operators in consultation with the community. Revenue collected in two water supply schemes recovered the operation and maintenance (O&M) costs. The on-going use of alternative sources was found to undermine cost recovery and highlighted the intermittent water supply and high tariffs. It was also found that user satisfaction is affected by not only on water availability but on water quality and convenience. Therefore, tariff needs to be set to meet O&M costs taking into account the user’s willingness to pay. The tariff should be increased in a gradual manner matched by improved water supply. Meters need to be installed in a phased manner in the systems.