To accelerate universal access to clean water and sanitation, the Bank of Kigali (BK) launched a dedicated WASH (Water, Sanitation, and Hygiene) loan product in partnership with UNICEF and Water for People in Rwanda. Bank of Kigali Plc, the largest commercial bank in Rwanda, offers a full spectrum of financial services to individuals, SMEs, and large corporations. Water For People is a global nonprofit organisation that ensures sustainable and lasting access to safe water, sanitation, and hygiene (WASH) services in communities worldwide. Through its flagship five-year initiative, Isoko y’Ubuzima, Water for People strengthens national and district-level systems, improves governance, and unlocks private sector participation to accelerate progress towards universal and sustainable WASH services across the country. UNICEF ensures access to healthcare, education, clean water and sanitation, and protection from violence and exploitation. Under the WASH loan product, a company can receive a loan ranging from Rwf50 million to Rwf500 million, repayable over five years, with an interest rate ranging between 10% and 14%. Eligible investments include community-based water supply systems, water micro-entrepreneurship ventures, and small-scale water utility expansion. The product was officially unveiled on June 20 during a high-level event at the Kigali Serena Hotel. The launch brought together over 100 key stakeholders from government, financial institutions, development partners, and the private sector. While Rwanda remains committed to achieving middle-income status by 2035, substantial financing gaps continue to hinder progress in the WASH sector. To meet national targets for safely managed water and sanitation services by 2030, the country faces an estimated annual shortfall of over Rwf 320 billion. The new WASH loan product aims to help bridge this gap by providing tailored financing options for private WASH operators, small and medium-sized enterprises (SMEs), and households. The development of this loan facility was informed by a comprehensive WASH financing landscape study conducted by Water for People and UNICEF. The study highlighted major barriers limiting financial sector participation in WASH, including perceived credit and market risks, a lack of appropriate financial products, and limited technical know-how among both lenders and borrowers. The newly launched loan product addresses these challenges through integrated risk-sharing mechanisms and targeted capacity-building support. Darius Mukunzi, Head of SME Banking at Bank of Kigali, noted that BK developed financial products tailored to the water, sanitation, and hygiene (WASH) sector, adding that the loan product reflects BK’s commitment to supporting sustainable development, especially in underserved rural and peri-urban areas. “We have learned a lot about the WASH sector and now have special loans and financial products just for you. We are lowering requirements, reducing interest rates, supporting women-led businesses, and even helping you invest,” he told investors in the WASH sector. He explained that businesses only need one year of operational experience to be eligible for the loan product. “It is open to water operators, sanitation operators, and hygiene service providers. Special incentives and terms are offered because the WASH sector is still emerging in Rwanda,” he said. He said loan types include working capital loans for all WASH operators and equipment loans for water and sanitation operators, among others. “Water operators in remote areas need investment in equipment. Cash flow is a challenge because they often must wait to collect money after providing services. The bank now has financial solutions designed specifically to address these challenges. Hygiene and sanitation operators, often small businesses or traders, also need capital, especially for equipment like trucks, and the bank is ready to support them,” he said. He said collateral requirements are reduced to 70% instead of the usual 80–100%. Water operators can get loans to buy stock, pay salaries, taxes, and more. Sanitation operators can get vehicle financing, even for used trucks (up to 7 years old), with only a 10% down payment. Hygiene operators, especially women-led businesses, can get collateral-free loans up to Rwf15 million for two years. “A future green sector fund opening again in 2026 will offer up to Rwf30 million with business training support.” “Working with UNICEF on this project has been insightful and transformative for the bank,” he said. Murtaza Malik, Representative for UNICEF Rwanda, expressed UNICEF's strong support and commitment to improving water, sanitation, and hygiene (WASH) services in Rwanda, which requires innovative financing. Rwf320bn needed annually “Despite Rwanda's commitment to universal WASH access by 2029, lack of funding is a major barrier. According to Rwanda’s Water Sector Financing Strategy (2022), the country needs Rwf320 billion annually to meet its water-related Sustainable Development Goals. Innovative financing, especially involving the private sector, is essential to closing this funding gap. This loan project is an example of such innovation,” Malik noted. He said UNICEF will continue to support other banks and financial institutions in Rwanda on similar initiatives. He mentioned a new initiative known as the Sanitation Financing Facility for Sub-Saharan Africa, which aims to unlock commercial investment through donor guarantees, targeting poor households. Aligned with Rwanda’s national goal of connecting one million households to water services and expanding sanitation coverage by 2029, the loan product is also expected to benefit private WASH service providers. Many such operators struggle to scale due to limited access to long-term credit, weak business planning, and the constraints of short-term contracts.” Eugene Dusingizumuremyi, Country Director of Water for People Rwanda, emphasised: “The partnership between BK, UNICEF, and Water for People proves that with the right tools and collaboration, we can turn financing challenges into opportunities. Together, we are advancing innovative financial solutions that prioritise sustainability and inclusive growth in the WASH sector.” So far, Water for People has provided safe and clean water to over 1.5 million Rwandans, with an investment of over $54 million, and remains committed to continued collaboration with the Government of Rwanda. “While 80.7% of Rwandans have access to improved water sources, only 12.3% have piped water at home. Just 45% are satisfied with the services they receive. This tells us: we must do more to improve service quality,” he said. “It is also a call to action for financial institutions and the private sector to join forces with the government and development partners. Public resources alone are not enough. We must unlock commercial financing to achieve sustainable and resilient WASH systems. This is where blended finance comes in, an essential tool for reducing project risks, lowering borrowing costs, and enabling longer-term investments, especially for small and medium WASH enterprises,” he added. Eng. Dominique Murekezi, the Acting Managing Director of WASAC Development Ltd, said: “It's not just a new loan product. It is a shift in mindset about how to finance the WASH sector. Traditionally, the sector has relied heavily on government and donor funding, but that’s not enough anymore, especially with the country’s growth and increasing demand. This new product is a concrete financial tool designed to help small and medium WASH businesses access funding that was previously difficult to obtain.” He said the product gives financial institutions a structured and lower-risk way to support the sector. “This initiative is a strong example of collaboration among government, donors, and the private sector. WASAC will continue to support and promote private sector involvement,” he said. Gemma Maniraruta, the Director General in charge of Water and Sanitation at the Ministry of Infrastructure, commended the Bank of Kigali for aligning its financial offerings with Rwanda’s development goals. “This is not just a loan product. It’s a tool for transformation, connecting people to the dignity of clean water, safe sanitation, and better hygiene. The initiative is about more than money. It is a means to increase financial access, promote sustainable investment in the WASH sector, and accelerate household water and sanitation connections. It supports Rwanda’s national goal of connecting at least 1 million households by 2029 and improving overall sanitation services,” she said. She emphasised that access to WASH services is a basic human right and essential for health, education, and economic growth. “Clean water keeps children healthy. Girls stay in school longer. Communities become more productive and empowered.” Access to improved water rose from 87% in 2017 to 90% in 2024, while access to improved sanitation increased from 86% to 94%. “The WASH loan product by the Bank of Kigali empowers private businesses to extend water connections to households, build safe household toilets, install rainwater harvesting systems, and purchase pit-emptying trucks. This shows the power of public-private collaboration. The public sector cannot do it alone. This new WASH loan product is a big step towards giving more Rwandans access to clean water and sanitation. The government can’t do it alone. We need banks and businesses to help. This initiative shows how we can work together to reach our goals and ensure that even the poorest families can live with dignity, health, and safety,” she noted. She said the Ministry of Infrastructure, through WASAC, has developed a framework to support small private investors in water supply and household connections.
