The Senate County Public Investment and Special Funds Committee has put Bomet Governor Hillary Barchok on the spot over the collapse of the Bomet Water and Sanitation Company (BOMWASCO), after an audit found the utility is technically insolvent and surviving on county bailouts.

Committee chairperson Peris Tobiko delivered a blunt assessment while citing the Auditor-General’s report.

“Governor, this company has a negative working capital of Ksh24.2 million. Salaries have not been paid since December 2023, and customer deposits are being used to settle bills. This is criminal negligence,” Tobiko said.

The audit report painted a grim picture of mismanagement. BOMWASCO recorded non-revenue water of 63 per cent, far above the regulatory limit of 25 per cent, leading to annual losses of Ksh61.4 million. The company also went 141 days without electricity after failing to pay Kenya Power, leaving Bomet town and the surrounding areas without power for nearly five months.

Bomet Senator Hillary Sigei said the situation had embarrassed the county leadership.

“My constituents have gone without water for months. Staff have not been paid for years. Statutory deductions amounting to Ksh200.5 million have not been remitted since October 2018. What kind of management is this?” he asked.

Senator Hamida Kibwana highlighted the impact on workers, saying employees had suffered due to unremitted deductions.

“Staff cannot access NSSF benefits and cannot secure loans because LAPTRUST deductions were made but never remitted. You have destroyed livelihoods, yet the wage bill stands at 52 per cent of operational costs, well above the 40 per cent limit,” she said.

Senator Beth Syengo questioned the use of county grants, noting that the utility continued to depend heavily on public funds.

“You received Ksh86.8 million in county grants, including Ksh41 million for staff restructuring and Ksh37.5 million for electricity bills paid directly by the county. Yet you cannot properly account for this money. Where is the value for money?” she asked.

Massive debts hit BOMWASCO

The audit also revealed that customers owed BOMWASCO Ksh257.6 million, with some debts dating back to 2015. Half of the 12,360 water connections remained unmetered. Trade payables totalling Ksh273.8 million had gone unpaid for more than a year, in breach of public finance regulations.

Governor Barchok blamed inherited problems, saying his administration took over an already struggling entity.

“We inherited ageing infrastructure and legacy debts from the former Chemosit Water Company. We are negotiating payment plans with Kenya Power and engaging development partners for capital injection,” he said, admitting that BOMWASCO survives only through county support.

Tobiko warned that time had run out.

“This company has recorded losses for three consecutive years. Without urgent intervention, BOMWASCO will shut down completely. Kenyans deserve better, Governor,” she said.