The water supply business is one of the lucrative ventures in Nairobi especially in the informal settlements and other highly populated areas which experience constant water shortages.
The perennial water shortages in such areas have created business opportunities for some of the prominent business people in Nairobi who allegedly own strings of water browsers that supply water to areas hardly hit by shortage.
This business is increasingly gaining popularity evidenced by the increase in the number of water supply lorries in the City.
For instance, driving along Ngong Road you will notice so many water tankers parked at Dagoretti corner. This is an indication that the business is booming in that area given the high water shortages in areas of Kawangware and Kibera.
Most of the water browser operators make deliveries to vendors who then sell the water to residents at exorbitant prices.
According to Peter Kamau, a water browser operator at Dagoretti Corner, deliveries around the area cost Sh3,000 for the 5,000 litre tank. Further towards the CBD, the cost rises to Sh5,000.
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The cost goes high depending on the residential area. Each tanker can make more than five trips, earning more than Sh30,000 for 5,000 litres and Sh45,000 for 10,000 litres tankers.
On a good day, Kamau makes 10 deliveries. The fuel costs and the amount for purchasing the water at the sources are not very substantial and leave a Sh2,000-4,000 markup.
“The business is seasonal and during the drier months, the costs go up,” said John Njogu, another operator.
Kamau notes the water supply business is an easy-to-start venture but requires a high capital of about Sh2.2 million for a 5,000 litres tanker.
Other costs are Sh350,000 for the tank, Sh60,000 for a pump, two pipes for Sh60,000, and the necessary permits, which cost Sh60,000 a year.
Most of the tankers are said to be owned by powerful people who work in cahoots with some officials from water firms to create artificial water shortage for them to do business.
They supply water to various customers including office blocks, hotels, schools, and car wash businesses among others.