NAIROBI, Kenya — Senators have urged county governments to take urgent steps to save county-owned water companies that are facing severe financial distress, with some losing up to 65% of produced water as non-revenue water (NRW).
The warning came during the grilling of governors by the Senate County Public Investments and Special Funds Committee, which was reviewing audit reports on county water firms for the year ending June 30, 2025.
The committee, chaired by Vihiga Senator Godfrey Osotsi, was presented with alarming figures showing that several water utilities are financially weakened and technically insolvent, mainly due to high levels of NRW.
This term refers to water produced but not billed due to leakages, illegal connections, faulty meters, poor billing systems, and theft.
“There is a bigger problem than what the counties are saying. Every county keeps talking about dilapidated infrastructure, but the real problem is billing,” Senator Osotsi said. “Customers are not being billed, and in many cases this is deliberate.”
He added that some water company managers were negligent and possibly colluding in the revenue losses.
The committee urged governors and boards to strengthen oversight of water company leadership and enforce accountability measures for senior management.
Nominated Senator George Mbugua called for immediate action and performance-based accountability.
“Tie down the CEOs and top managers to strict performance contracts. Those who are not performing should be sacked immediately. Counties cannot continue pouring money into companies that are bleeding revenue,” he said.
Audit Report Reveals Major Losses
Audit findings highlighted major losses in several counties, with the Coast region’s Kilifi–Mariakani Water and Sewerage Company Limited among the worst affected.
The company produced 9.71 million cubic metres of water, but only 4.83 million cubic metres were billed, leaving 4.87 million cubic metres (50%) as NRW.
This translated into revenue losses estimated at Sh653.18 million.
Kilifi Governor Gideon Mung’aro attributed part of the losses to aging infrastructure, noting the company has around 9,000 outdated water meters that are beyond their lifespan.
The senators have called for urgent reforms, including:
- strict billing and revenue management systems
- performance contracts for CEOs and senior managers
- enhanced oversight by county boards
- infrastructure upgrades and meter replacement
- enforcement against illegal connections and theft
As the committee continues to scrutinize county utilities, senators say immediate action is needed to prevent further collapse of essential water services.
