Senate orders Governor Malombe to submit debt recovery plan over Kitui water firms
By Faith Lagat, January 29, 2026The Senate County Public Investment and Special Funds Committee has directed Kitui Governor Julius Malombe to submit a comprehensive debt recovery plan and provide evidence of the full refund of all borrowed customer deposits by the end of the current quarter.
The directive followed the governor’s appearance before the committee to respond to audit queries relating to the Kiambere Mwingi Water and Sanitation Company (KIMWASCO) and the Kitui Water and Sanitation Company (KITWASCO).
The session, chaired by Sessional Chair Senator Peris Tobiko, focused on persistent financial and operational weaknesses flagged by auditors. Senator Tobiko opened the proceedings by warning that the issues raised could not continue to be overlooked.
“Governor, these are not just numbers on a page; they represent a betrayal of public trust. You cannot expect this committee to overlook the persistent siphoning of customer deposits to fund operational inefficiencies,” she noted.
Members of the committee sought clarity on why similar concerns had appeared repeatedly in successive audit reports, despite previous assurances of corrective action by county officials.
Utilities flagged over financial instability
Auditors reported a “material uncertainty” regarding the ability of both water utilities to continue operating sustainably.
KIMWASCO recorded a negative working capital position of Ksh40.9 million, while KITWASCO posted losses amounting to Ksh19.6 million during the year under review.
Senator Beth Syengo raised concerns about the long-term viability of the two entities, pointing to their failure to meet basic statutory obligations.
“We are looking at entities that are essentially on life support. If a water company cannot remit statutory deductions for its own staff, how can we trust it to manage billions in infrastructure?” she asked.
The committee noted that weak cash flows, high operating costs and poor revenue collection continued to undermine service delivery to residents across Kitui County.
Customer deposits and stalled projects under scrutiny
A major point of contention was the use of customer deposits to finance operations and projects. KIMWASCO management admitted to using Ksh9.3 million from customer deposits to sustain operations during pump failures.
KITWASCO also confirmed that Ksh19.6 million had been redirected to fund projects, including the Ilimukuyu dam.
Senator Agnes Kavindu questioned the legality of the practice, stating, “It is unacceptable to treat the hard-earned deposits of Kitui residents as a flexible credit line for management’s mismanagement.”
The committee further examined the stalled Ilimukuyu dam project, which remains 70 per cent complete despite full payment to the contractor, as well as KITWASCO’s 46 per cent Non-Revenue Water rate.
Governor Malombe attributed the challenges to inherited infrastructure problems, saying, “We are working tirelessly to reverse these trends. The installation of new high-lift pumps at Kiambere and the transition to consumption-based tariffs are the first steps toward financial stability.”
The committee reiterated its demand for a debt recovery plan and proof of refunded deposits within the set timeline.