The National Treasury has secured a Sh22.29 billion loan from European agencies that will be used for developing water projects in the counties of Kisumu and Mombasa.
Treasury Cabinet Secretary Henry Rotich said on Friday that an agreement with French Development Agency (AFD) has paved way for the disbursement of Sh17.3 billion.
Other agencies going to give out cash for the projects include European Investment Bank which will provide Sh.4.3 billion and Sh619 million grant from 28 European Union countries.
The money will be used to build a new dam in Mombasa while in Kisumu the cash will be spent in seeking new water sources as well as upgrade supply networks in projects that will also benefit satellite towns in Western Kenya.
Both Mombasa and Kisumu have been grappling with an acute water shortage owing to poor weather and the growing population in the two cities.
In Kisumu the city has been facing a humongous water scarcity as the water hyacinth continues to dry in Lake Victoria, hampering efforts to harvest water.
In Mombasa, the county government has been struggling to secure an international investor who will come and purify the Indian Ocean salty water, make it fresh and subsequently consumable at the household level.