Bank of Kigali and Partners Launch New WASH Financing Facility

The Bank of Kigali, in partnership with UNICEF Rwanda and Water For People, has launched a new financing initiative aimed at enabling private sector involvement in enhancing Water, Sanitation, and Hygiene (WASH) services across Rwanda.

The new WASH Financing Facility , launched on June 20, will provide financial and equipment loans to private sector players in the water, sanitation, and hygiene sectors.

Under the facility: Water operators will have access to a Connection Working Capital Loan and a Water Bill Discounting Facility at an interest rate of 17.5%, with a collateral requirement of only 70% plus receivables.

These loans will help them purchase materials, hire labor, manage transportation, and more. Sanitation operators will benefit from Sanitation Vehicle and Equipment Financing to acquire trucks and essential equipment for their daily operations.

Hygiene operators, particularly women-owned businesses, will be eligible for Stock Loans of up to Rwf15 million, collateral-free, to support the growth of hygiene product inventories—an area largely driven by women entrepreneurs. This facility aims to address the current financing gap that hampers the public sector’s ability to meet Rwanda’s ambitious goal of achieving 100% access to clean water by 2029.

Currently, 93% of Rwandans have access to clean water, and 68% can access it within 30 minutes of their location.

Darius Mukunzi, Head of SME Banking at the Bank of Kigali, noted that this is a novel initiative within the bank itself, created after evaluating the key challenges faced by WASH sector stakeholders—including capital and equipment shortages.

“We have partnered with the Aguka Fund at BK Capital, where one can earn up to 10% returns while simultaneously leveraging those funds to unlock 100% financing facilities from the bank,” Mukunzi said.

Eugene Dusingizumuremyi, Country Director for Water For People Rwanda, commended the Bank of Kigali for pioneering such a partnership with WASH sector organizations.

“This is a call to action for the private sector. Public funding alone is no longer sufficient. We need innovative, alternative solutions to meet Sustainable Development Goal 6 (SDG6),” he emphasized.

He highlighted the critical role WASH plays in public health and welfare, calling for a collective effort and strong, sustainable systems to deliver water and sanitation services to all.

Malik Murtaza, Chief of WASH at UNICEF Rwanda, underscored that the lack of adequate financing remains a major barrier, and stressed the need for innovative funding mechanisms that engage both users and the private sector.

He noted that Rwanda requires Rwf320 billion annually to meet its WASH targets, and that this new facility will make a significant contribution.

“Today marks a major milestone in mobilizing resources to improve WASH services in Rwanda using innovative financing. I congratulate and thank the Bank of Kigali and Water For People, in collaboration with UNICEF,” said Murtaza.

He acknowledged the government’s efforts and increasing prioritization of WASH, with the national budget for the sector growing by 53%—from Rwf108 billion to Rwf165 billion. UNICEF, he said, remains committed to supporting Rwanda in meeting its WASH goals.

Murtaza also revealed that UNICEF plans to support other banks and financial institutions in similar initiatives and is working with Sub-Saharan countries, including Rwanda, to establish a Sanitation Financing Facility.

This facility will leverage donor-backed guarantees to reduce borrowing costs and unlock larger commercial investments in rural sanitation.

Eng. Dominique Murekezi, Acting Managing Director of WASAC Development Ltd, said the new facility is a practical tool that enables small enterprises to access financing and brings the financial sector into direct involvement with development work.

“We cannot achieve this alone. The private sector must step up and support the shared goal of ensuring safely managed water and sanitation services for all,” he said.

Murekezi added that WASAC would continue working with partners to scale up innovative solutions to meet urgent access needs.

Gemma Maniraruta, Director General of Water and Sanitation at the Ministry of Infrastructure, highlighted that while access to water has increased significantly between 2014 and 2024, the public sector alone cannot meet national targets.

“This marks an important step in bridging the gaps in water access,” she said, emphasizing that private sector engagement is key to overcoming existing challenges.