A Senate oversight committee has identified 15 water utility companies in various counties for losing Sh10.5 billion in non-revenue water due to inefficiencies. 

The Senate County Public Investments and Special Funds Committee chaired by Vihiga lawmaker Godfrey Osotsi, noted that most water companies had registered high non-revenue water, above the Water Services Regulatory Authority Board (WASREB) 25 per cent limit. 

The committee observed that the main causes for the loss were illegal connections, leakages from dilapidated water infrastructure that had not been replaced due to low funding and faulty water meters.  

In addition, some water companies did not maintain records of the volume of water produced, as there were no master meters at the intake points. 

For instance, during the year under review, Cherang’any Marakwet Water and Sanitation Company Limited, neither installed a master meter nor provided meters to the clients.  

This is after the committee considered the reports of the Auditor-General for water service providers of the county governments. 

“The committee observes that the reports of the county entities had queries with high fiduciary risks and negative implications on the sustainability of the affected county entities,” the committee report reads in part.  

According to the report, Nairobi water utility firm has the highest non-revenue water at Sh8.5 billion, followed by Mombasa (Sh1 billion), Kericho (Sh199.4 million), Kwale (Sh183.3 million), Kitui (Sh110.1 million), Sibo (Sh102.7 million), Lodwar (Sh89.1 million), Bomet (Sh68.1 million) and Narok (Sh53.3 million). 

The committee recommended that the board and the accounting officers of the water companies put in place comprehensive measures to mitigate losses, including the application of the Geographical Information System (GIS) for receiving real-time data. 

This the committee argues will help in the detection of bursts and leakages, installation of smart meters for accurate billing, replacement of dilapidated infrastructure and development of institutional anti-corruption policies and enforcement measures to prevent illegal connections among other measures.  

“The management should disclose the proportions of the physical and commercial losses in percentage in their reporting,” reads part of the report.  

It adds: “The committee will follow up on the issues raised by the Auditor General to ensure that all officers who may have taken part in the misappropriation of funds or any other breach of law are properly investigated and, where found culpable, prosecuted in a court of law.” 

In addition, the committee observed that many water companies were non-compliant with the National Cohesion and Integration Act which provides that at least 30 per cent of the vacant posts at entry level are filled by candidates who are not from the dominant ethnic groups. 

During the year under review, Naromoru Water and Sanitation Company Limited and Matungulu Kangundo Water and Sewerage Company Limited had all employees from one dormant community.  

Further, the committee noted that a number of water companies recorded excessive wage bill above the allowable 35 per cent.