Distribution of Benefits and Risks in Inter-Basin Water Transfers: The Case Study of NCT I from Upper Tana Basin to Nairobi City

Inter-Basin Water Transfers (IBWTs) introduce complex socioeconomic, hydrological, ecological, and institutional impacts that are instrumental to decision-making. However, since most studies focus on the hydrological and ecological aspects of IBWTs for the development of sustainable water resources, it is necessary to investigate the distribution of risks (costs) and benefits of IBWTs among stakeholders. This study aimed to identify and categorize stakeholders, their relationships, and the distribution of risks/costs and benefits in the Northern Collector Tunnel phase I (NCT 1) IBWT using a stakeholder analysis method. The Athi Water Works Development Agency (AWWDA) and the Ministry of Water and Irrigation (MoWI) played a central role in the project. However, most stakeholders found the devolved units Water Services Providers (WSPs), Water Resources Authority (WRA), Water Resources Users Associations (WRUAs), and Murang'a County as the most critical institutions. Public participation in NCT1 was not inclusive but only done to meet the statutory project requirements. Significant risks of the project emerged, such as reduced river flows, drying of the springs, and Murang'a residents' ability to meet their water needs. Therefore, it is necessary to compensate for diverted water through a water levy to cover environmental externalities and catchment conservation. The increase in water supply for Nairobi City was perceived as the main benefit for the recipient basin, but an improved water levy with adequate cross-subsidies was pointed out as an instrument to catalyze water savings by the urban water utility.