34 Kenya
34.1 Nairobi Water Works
Akallah
In August 2020, people all over the development world started talking about water in Nairobi. There was a lot of anger, and some calls for sending people to the guillotine. The reason: the publication of results from a development randomized controlled trial (RCT), run by two American development economists, working together with the World Bank. In order to compel property owners in Kayole-Soweto—a relatively poor neighborhood in eastern Nairobi—to pay their water bills, this experiment disconnected the water supply at randomly selected low-income rental properties.
Today’s water system reflects this history of inequality. Nairobi’s water is harnessed from a combination of surface and groundwater sources; however, the city’s groundwater is naturally salty and very high in fluoride. Piped water systems, provided to upper- and middle-income housing estates, do not exist in the vast bulk of the city’s poorer neighborhoods, where people must instead buy water from vendors—often salty water pumped from boreholes, or siphoned off from city pipes through rickety connections that are frequently contaminated with sewage. In the richer neighborhoods, Nairobi Water Company, a public utility, sells relatively clean piped surface water for a fraction of the price paid by poorer Nairobians—a disparity that research has shown to often be the case in other cities in the global South. As the Mathare Social Justice Centre puts it, in poorer neighborhoods such as Kayole-Soweto, “water provision costs more, is less safe, and is less consistent than in other richer parts of the city.”
The World Bank has, since 2000, stepped back from the stringent structural adjustment plans that the Bank imposed on one African nation after another in the 1980s and 1990s. They now tend to focus their energies on projects like this one, often implemented together with African governments, and often focused on enhancing state capacity to fill its citizens’ basic needs. But the neoliberal ideology, while toned down, is still there: the Bank’s insistence that users pay a large share of the water connection cost, via a private bank loan, is characteristic of this new and more subtle neoliberalism.
In order to test a punitive method for fixing this problem, these two economists turned to an RCT. The RCT, a popular method in development economics for the last two decades, is used to test a development intervention by (1) randomly dividing people into “treatment” and “control” groups; (2) giving some “treatment” to the first group, while withholding it from the second; and (3) measuring the difference in outcomes. While pioneers of the method were rewarded with the Nobel Prize in Economics in 2019, critics are wary of the idea of development economists experimenting on the poor.