How Informal Water Markets Serve the Urban Population: Dynamics of Invisible Hand in Nairobi’s Water Sector

Abstract

Globally, attaining universal access to safe, affordable drinking water remains a major challenge. In two informal settlements in Nairobi, Kenya, this qualitative study investigates three modalities of informal water markets�wholesale, distribution, and direct vending�as critical alternatives to formal water provision. Through stakeholder interviews and field observations, we find that competitive dynamics among vendors often lower prices, increase reliability, and maintain consistent availability. However, quality compromises and lack of regulation present risks. The paper concludes that informal water providers serve essential roles in low?income areas, and effective policies must integrate them to support universal clean water access.