This paper highlights the relevance of the use of the Water Poverty Index as an effective water management tool in resources allocation and prioritization processes. Nevertheless, three conceptual weaknesses exist in the current index, including redundancy among variables, the decision of assigning weights to them, and the aggregation method. Based on a post process of readily available but sector relevant data, a revised method to construct the index has been developed through a case study in Kenya, at local scale. The paper discusses the results of this application. In particular, different approaches to exploit the index as a policy tool are presented, with the aim of enabling a more comprehensive understanding of the water sector constraints and challenges, and thus enhance related decision-making accordingly.