The WASH economy- A Ksh. 360 billion opportunity seeking suitors

For many, the Water, Sanitation and Hygiene (WASH) sector is seen primarily as a public service the responsibility of government and NGOs. Yet beyond its public-good dimension lies a thriving and underexplored economic opportunity. The sector is essential for achieving universal access to basic services, improving health outcomes, and building climate-resilient communities.

However, despite its importance, the WASH entrepreneurial ecosystem remains underdeveloped. It has not attracted the same level of innovation or investment seen in sectors such as telecommunications and financial services. This lag limits service delivery and represents a massive untapped opportunity for entrepreneurs and investors to fill critical gaps in access and efficiency.

A 2015 report by water & sanitation for the urban poor (WSUP) highlighted structural issues that continue to hold the sector back. The report observed that WASH enterprises lack visible success stories and collective representation, leaving them without a unified industry voice. Unlike mature sectors with active associations that promote collaboration, policy engagement, and market access, WASH entrepreneurs often operate in isolation. This fragmentation, combined with a persistent perception of WASH as a “public good” rather than an investable market, continues to discourage private-sector participation.

Despite these challenges, the problem is not a lack of entrepreneurial activity. Across Kenya, hundreds of small and medium enterprises (SMEs) are engaged in sanitation services, water purification, waste management, and hygiene products. What the sector urgently needs is a shift toward ecosystem maturity investing in enabling systems and collaboration, not just individual projects.

Further, the WASH space, particularly in waste management and new sanitation methods, was seen to carry a social stigma. These mindsets culturally and socially discourage women and young people from entering the sector, limit their access to essential resources, and diminish the perceived value of their contributions, despite clear evidence that inclusive businesses are more resilient and effective.

Financially, the industry players cited high interest rates and lack of collateral as other hoops they have to jump through. These coupled with lack of formal track records achieved through successful government engagement, means they cannot de-risk their projects to attract larger private financing. This creates a perpetual cycle where the lack of initial finance prevents businesses from scaling, and the lack of scale prevents them from accessing formal, affordable capital, stunting sectoral growth entirely.

Insights from the Biashara Pawa dialogues

The Biashara Pawa dialogues provided new insights into the institutional, legal, and cultural barriers constraining the sector’s potential. Entrepreneurs reported that WASH remains heavily dependent on public sector financing, with policy stagnation and fragmented governance limiting private investment. Many cited the lack of coordinated policy and the exclusion of women and youth from decision-making spaces as persistent challenges.

Beyond financial hurdles, social stigma continues to discourage participation in sanitation and waste management enterprises. These cultural perceptions, often gendered, restrict opportunities for young people and women, despite growing evidence that inclusive businesses are more resilient and impactful.

Access to finance remains another major barrier. Entrepreneurs face high interest rates, limited collateral, and a lack of formal track records all of which restrict their ability to de-risk their projects and attract larger investment. This cycle of underfunding traps promising enterprises at the micro level, preventing them from scaling or contributing meaningfully to Kenya’s clean economy transition.

The dialogues emphasized the need for stronger self-advocacy within the WASH community and for building alliances through Entrepreneurial Support Organisations (ESOs). Participants proposed the establishment of a national WASH policy that integrates both national and county-level goals and aligns with Kenya Vision 2030. They also recommended a dedicated government funding framework for start-ups, including non-repayable grants. Moreover, participants highlighted the critical role of ESOs in raising awareness of government initiatives such as access to government procurement opportunities (AGPO), especially among women and youth-led enterprises.

Unlocking the KSh 360 billion market

Despite the sector’s current limitations, the WASH economy offers immense potential. A 2024 report by the sanitation and hygiene fund (SHF) valued Kenya’s sanitation economy at KSh 220 billion in 2022, with potential to reach KSh 362 billion by 2030 if universal access is achieved. However, the journey toward this target  and toward SDG 6.2  is lagging.

The SHF report argues that the solution lies not in more aid, but in market-based transformation driven by private investment. Demand for water and sanitation services continues to grow, fuelled by urbanisation, population growth, and rising living standards. Stakeholders must therefore reframe sanitation as a high-growth economic opportunity rather than a public expenditure.

Significant value lies in emerging subsectors. The smart sanitation economy, which leverages digital tools, sensors, and real-time data to optimise sanitation services, is projected to grow by 266% by 2030. The circular sanitation economy, which transforms waste into reusable resources such as fertiliser, biogas, and construction materials, could grow by 149% over the same period. Urban innovations that address density and affordability  from space-saving facilities to the booming consumables market (the toilet paper segment alone could reach KSh 87 billion by 2030) represent further avenues for private-sector growth.

The way forward

The WASH sector stands at the intersection of social development and entrepreneurship. Unlocking its full potential will require integrated governance, inclusive policies, and bold investment in innovation. Stakeholders must work collectively to dismantle structural barriers, prioritise youth and women’s participation, and scale circular, climate-smart sanitation solutions.

Kenya’s WASH economy holds the promise of creating decent jobs, improving public health, and accelerating progress toward universal access. By aligning policy ambition with targeted financing and private-sector engagement, the country can turn today’s challenges into a KSh 360 billion opportunity that benefits both people and planet.