Senators take Waiguru to task over Sh470m water company revenue loss
Senators have taken Kirinyaga governor Ann Waiguru to task over the loss of revenue by the Kirinyaga Water and Sanitation Company (KIRWASCO) worth Sh470.6million.
The Senate County Public Investment and Special Funds committee yesterday questioned Waiguru over how the firm lost revenue worth 60 per cent of the total production.
This is after the Auditor General in her report for the financial year 2020-2021 showed that the water firm produced 6,722,945 cubic meters of water but only 2,701,482 cubic meters was billed to customers at a cost of Sh150.8 million.
The report states that the balance of 4,021,463 cubic meters water which is approximately 60 per cent of the total production is unaccounted for water (UFW) which is way above the sector recommended limit of 25 per cent.
According to the Water Services Regulatory Board (WASREB) guidelines, this quantity is 35 per cent above the allowable loss of 25 per cent, which may have resulted in loss of sales estimated at a cost Sh470.6 million.
“In the circumstances, the revenue loss may have adversely affected the company’s profitability for the year,” reads part of the audit report.
In her response before the Senator Godfrey Osotsi-led committee, Waiguru said that non-revenue water is caused by both physical and commercial losses.
Waiguru charged that physical losses for KIRWASCO are caused by old dilapidated infrastructure that has caused high operational costs in repair of bursts and leaks of water.
She further said that for instance Githioro water supply system was constructed in 1940, with a design population of 2500 people.
“The company developed non-revenue water reduction plan which has been implemented in the financial year 2020/2021. The company has shifted from Upvc pipes to HDPE pipes. This is because HDPE pipes are more durable and elastic than UPVC pipes,” said Waiguru.