Analyzing the Willingness to Pay for Improved Domestic Water Supply in Moiben: Elgeyo/Marakwet County, Kenya

Abstract

As the demand for water in rural Kenya keep increasing due to high population growth, the quality of its supply for domestic consumption is compromised by agriculture related pollution. River water supply in rural areas is a public good that may not be provided under normal market conditions.  This article attempts to provide alternative market conditions in order to estimate the economic importance of improved domestic water supply to the surrounding community. It employed contingent valuation method in estimating willingness to pay (WTP) and assesses factors influencing the likelihood of WTP responses. A sample of 384 households living along Moiben river in Keiyo/Marakwet County was studied. Results indicated majority (56%) of the residents use the river for domestic consumption. The average amount residents are willing to pay for improved domestic water supply is Ksh 196 per month, showing their desire for better water management. Findings indicate that there were statistically significance between household size (0.021 with t value of 2.220) and WTP at significant level of 0.05. The reason may be that the cultural attachment to the family size could have encouraged the members of the community to the willingness to pay, since that the impact on the water supply is easily felt as a result of the family size and the daily activities which include domestic, agricultural, and industrial and some commercial activities which rely on this resource. Education has a positive correlation to WTP but not significant. It was also discovered that majority (76%) members of the community hold a secondary education and below and those with education from tertiary and above are 25%. The study recommends that both levels of Government should strengthen policies and regulations towards economic activities of the community and providing incentives that will encourage the youths in improving their education since that from the findings majority have basic education of secondary and below. The WTP estimates can be used by policy makers to determine pricing of the commodity for better provision of improved domestic water supply.

Keywords: Contingent Valuation Method, willingness to pay, water supply and water quality