Regarding the training and capacity building component, there has been an extended design process over the last year, to address the training needs in an effective manner and to ensure that the training and capacity-building interventions are properly anchored in local institutions.

In the meantime a Fast-track Capacity Building Programme for water utilities has been ongoing in four (4) towns: Kisii and Homa Bay in Kenya and Bukoba and Muleba in Tanzania. The overall objective of the fast track capacity building programme for utilities is to support the financial and operational sustainability of the capital investments being provided under the LVWATSAN Initiative. The issue of sustainable revenue generation was identified as a priority in this regard. The fast-track capacity-building has also laid the groundwork for a long term programme of capacity building in utility management and other areas. Over 120 staff of the utility companies have been trained and assistance is being provided to the utility companies in improving their operational systems, including billing and revenue collection, water demand management, customer care and mapping.

The immediate interventions, including the training and capacity building, have already resulted in a significant improvement in the performance of the water utilities in the project towns. For example, unaccounted-for-water has been reduced from an average of 56% of water produced to 42%. Revenues have increased by an average of 65%. As more water has become available, the Utilities are now making efforts to increase the number of water connections. In fact, under their respective performance improvement programmes, an aggressive connection policy has been launched. Over 520 new connections have been made while about 450 previously dormant connections have been re-activated. With an improved financial performance and expanded customer base, three (3) of the participating utilities (in Kisii, Homa Bay and Bukoba) are now approaching 100% cost recovery in operational and maintenance expenditures (they are currently generating revenues amounting to an average of 94% of their operating costs). The objective is to further improve the financial viability of the utilities so that in the next three (3) years, they will be able to access loan financing to meet their further capital development needs. The achievement of cost recovery for operations and maintenance is a major improvement. The impact of interventions so far, has encouraged the stakeholders to fully engage in the long-term design process. The Multi-stakeholder Forums are playing a key role in all aspects of the programme governance.