A water dispenser. Many listed companies have either switched from bottled water to purified tap water or have plans to do so soon.
Employees of some listed companies will have noticed an emerging trend of branded bottled water suddenly disappearing from their offices.
It usually starts with the disposable plastic cups disappearing and management asking them to use their reusable bottles instead. Then the water dispensers with their branded refillable bottles are next to go. In their place, they have seen a gadget that looks like the dispenser but has no refill bottle at the top. The water that this gadget spits out comes from the tap water that many of the employees have grown to loathe.
At least five companies listed on the Nairobi Securities Exchange (NSE) have either switched from bottled water to purified tap water or plan to do so soon. Most of the companies ditching bottled water are banks such as ABSA, Stanbic and KCB. Equity Bank is also planning to abandon refillable bottles, which could affect the multi-million shilling water bottling industry.
Turning on the taps not only aims to reduce the cost of buying bottled water, but also the cost of distribution, the use of plastic and the carbon emissions associated with transporting bottled water.
The move from dispensers to standalone water purification points, which rely on piped water, is one of the ways in which companies are responsibly managing water, a scarce resource that, according to official data, is inaccessible to over a third of Kenya's population.
The standalone water purification point-of-use reduces the amount of chlorine, soil residue, and organic and inorganic substances in the water through a process known as filtration, making it safe to drink.
Water use is one of the disclosures made in the sustainability reports of companies listed on the NSE.
ABSA Kenya, which launched its sustainability report on Thursday, has saved up to a third, Sh4 million, of its water costs after switching to purification points. They lease the standalone water purification points.
The company also noted that the switch has enabled it to reduce its carbon footprint by eliminating the need for trucks that used to transport bottles. The lender has also saved on storage space for the refill bottles and the electricity needed to take some of the bottles to higher floors.
Absa is one of the few banks in the country that does not have water dispensers in all its branches.
“We rely on piped water and we have water purification standalone units,” said Mwenda Rufus, Sustainability Manager at ABSA Kenya.
The initiative, Mwenda said, has also helped them to significantly cut back on plastic waste generation.
“By eliminating the need for single-use plastic water bottles typically used with dispensers, we are actively contributing to a cleaner and greener environment,” says Absa in its Sustainability Report.
Stanbic Kenya, another multinational bank listed on the NSE, has also transitioned from bottled water to purification points.
“Our water efficiency initiatives, such as the implementation of in-office Ultra-Violet water treatment systems, have eliminated the need for bottled water, further reducing plastic waste,” said Stanbic in its sustainability report.
Responsible water use is one of the Global Reporting Initiative (GRI) standards, and many listed companies have committed to switching from expensive and wasteful bottled water, especially after the Nairobi Securities Exchange designed ESG (Environmental, Social and Governance) Disclosure Manual Guidance in 2021.
In addition to responsible water use, companies are expected to disclose how they treat their employees and the environment.
KCB, the largest bank by assets, has also published its sustainability report, which shows that it intends to phase out bottled water in all its branches.
"To provide affordable drinking water to our staff, we installed water purification systems across our branches," says KCB in its sustainability report.
However, KCB officials later clarified that the lender was undertaking a phased installation. “There are some branches that have installed water purification, and others still use bottled water,” an official said.
The installation has so far been done in three branches. “But the plan is to roll it out in all,” added the official.
The lender said total water consumption amounted to 110,630,064 litres, representing a 10 percent decrease compared to the 122,331,444 litres consumed in 2022.
“This reduction in water consumption reflects the Group's commitment to responsible water management and conservation practices.”
Britam, an insurance provider, is also taking this direction.
“We are implementing sustainable initiatives for water consumption. We have introduced the ‘bottomless water concept’ through water filtration leasing, eliminating the need to purchase bottled water and associated plastic waste,” said Britam in its sustainability report.
“Additionally, we encourage our employees to use re-usable water bottles, with 80 percent doing so currently,” added the insurance provider.
Equity Bank does not indicate in its sustainability report whether it has made the switch to standalone purified water, but it says it has implemented several water-saving initiatives as part of its commitment to reducing water consumption.
“These include the installation of more efficient plumbing fixtures and smart irrigation for landscaping,” said the James Mwangi-led bank.
Last year, Equity Group’s total water consumption was 57,235 cubic metres, a metric that the lender says it continues to monitor and improve related data collection.
“The Group is also in the process of implementing systems to reduce water use across its operations, reflecting its commitment to sustainable water management,” added Equity.
Equity is also said to be moving to standalone water purification points.
The NSE-listed Nation Media Group is also phasing out bottled water.
Access to safe drinking water is a human right enshrined in the constitution.
However, millions of Kenyans do not have access to safe drinking water, with 31.6 percent of the population using unimproved drinking water sources, according to the 2022 Kenya Demographic Health Survey.
Just as there is a carbon footprint, there is also a water footprint -- the measurement of the amount of water used in the supply chain of a product or service.
The water footprint allows companies to understand where and when water is used, both in the production of their products and in their supply chains.
The shift to point-of-use treatment is likely to affect the water bottling industry, which is dominated by companies such as Aquamist and Coca Cola.
The water purification business has also become prevalent in most estates in major cities as people move away from drinking tap water.
By August 2019, only 2.8 percent of Kenyan households were using bottled water.
