Is Mobile Money a Viable Water Sector Bill Payment Solution in rural areas?

 

Mobile money has emerged as a transformative enabler in Africa’s digital finance ecosystem, and its application in the water sector has shown significant promise. In Kenya, where mobile network penetration is exceptionally high, mobile money provides an efficient, reliable, and scalable platform for water utilities seeking to improve revenue collection, enhance service delivery, and strengthen operational sustainability.

1. Mobile Network Coverage: A Strategic Foundation for Digital Water Services

According to the Communications Authority of Kenya (CA), mobile network population coverage reached 98% in 2022/23, with 4G coverage at 97.3% and 5G at approximately 30% by 2024/25. This extensive network presence provides a robust digital infrastructure that supports machine-to-machine (M2M) communication and Internet of Things (IoT)-enabled technologies used in modern water service delivery.

During my two years working in Kenya with eWATER Services, this strong network presence has been central to the deployment of our technology in rural water supply systems across counties including Tharaka Nithi, Kirinyaga, and Laikipia.

2. Integration of GSM-Enabled Technology in Rural Water Systems

A key enabler of the eWATER model is the GSM communication module integrated into every smart tap. This module operates on ultra-low-bandwidth mobile technology, making it highly suitable for rural areas where network quality can be inconsistent.

This connectivity allows the smart taps to:

  • Transmit real-time operational data to a central dashboard.

  • Support remote performance monitoring and system uptime analytics.

  • Enable proactive maintenance through alerts generated by the system.

Through these capabilities, eWATER’s technology has helped actualize 24/7 access to clean water for rural households, contributing to improved water security and reducing non-revenue water through real-time accountability.

3. Mobile Money as the Core Driver of Revenue Collection

Mobile money is the dominant digital financial service in Kenya, used by 77% of rural residents and 89.7% of urban residents. This widespread adoption makes it an ideal payment gateway for water utilities.

The eWATER system utilizes a tap-and-pay model, in which:

  • Customers load credit onto their eWATER tag via mobile money.

  • At the point of collection, the user taps the tag on an eWATER Smart Tap.

  • The tap’s dispenser automatically deducts credit per litre dispensed, utilizing an integrated, cloud-based payment architecture.

This arrangement ensures that every transaction is digitally recorded, providing full transparency and accountability across the entire water scheme.

Importantly, customers are not required to own a mobile phone. Credit can be purchased from any mobile phone and linked directly to the tag—an inclusive design that accommodates the poorest households.

4. Customer Service and Operational Efficiencies Enabled by Digital Payments

The integration of mobile money and GSM-enabled water technologies has drastically improved customer relationship management (CRM), an area where many African water utilities traditionally struggle.

Key enhancements include:

  • Direct customer support lines embedded into the smart tap units, enabling instant communication with eWATER agents.

  • Real-time resolution of payment or access issues, supported by data-driven insights.

  • Reduction in billing disputes, as every transaction is time-stamped and traceable.

  • Operational efficiency gains, as revenue collection is automated and cash handling risks eliminated.

This system also creates a secondary customer ecosystem involving telecommunication service providers such as Safaricom and Airtel, who benefit from increased mobile money transactions generated through routine water purchases.

5. Strategic Potential of Mobile Money for Africa’s Water Utilities

Mobile money presents a powerful avenue for addressing the long-standing challenges in the water sector, especially in rural and underserved areas. Its benefits include:

  • High collection efficiency and predictable revenue streams.

  • Reduced cost of billing and cash management for utilities.

  • Enhanced financial sustainability of water schemes.

  • Greater transparency and elimination of revenue leakages.

  • Improved customer experience through easy, immediate payments.

Given the sector-wide push for digital transformation, mobile money has the potential to become the preferred billing and revenue collection method for water utilities across Africa. Its integration with IoT water solutions such as eWATER demonstrates how digital finance and digital infrastructure can converge to unlock sustainable water service delivery models.

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