Tana Athi wallowing in Sh10 billion debt pay plan
By Rawlings, October 24, 2023
Tanathi Water Works Development Agency (TAWWDA) is reeling from a debt of more than Sh10.16billion with all repayment plans in limbo.
This is after the water agency entered into an on-lend loan agreement with the National Treasury and Economic Planning for the implementation of Kenya Towns Sustainable Water Supply and Sanitation Programme.
The agency serves Kitui, Makueni, Machakos, and Kajiado counties and received a loan from the African Development Bank (ADB) in 2017.
The revelation emerged when the agency officials appeared before the Senate County Public Investment and Special Funds Committee chaired by Vihiga legislator Godfrey Osotsi.
The Senators are questioning why the consumers are being charged higher water tariffs to repay the loan yet there is no clear bank account that the money is being channeled to.
Tanathi Water Works Chief Executive Officer Fredrick Mwamati told the committee that upon promulgation of the Constitution, 2010 and the enactment of the Water, Act 2016, water provision was devolved to counties with the Water Service Providers (WSPs) becoming agents of the County Governments.
“We have two loans acquired before devolution that have not been paid. This is because there is no clear framework for the loan repayment,” said Mwamati.
He went on: “The subsidiary loan agreements were entered into in 2010 under the Water Act, 2002 when the Water Service Providers were agents of the Water Service Boards. There is no framework linking the Water Works Development Agencies and the WSPs on how the existing loans would be repaid.”
According to Tanathi, they secured a loan of Sh3 billion for intake works and a water treatment plant of 9,000 cubic metres per day for the Masinga-Kitui Water and Sewerage project. However, because of non-repayment of the loan, the facility has accrued Sh645.1million in interest a move that has pushed the non-repaid loan to Sh3.7billion.
Rehabilitation works
The water works agency further borrowed Sh2.4billion for the rehabilitation of 58.8km of the canal and access roads for the Yatta Canal Water supply project.However, the project has since accrued Sh509.8million in interest, which has pushed the amount to a staggering Sh2.9billion in arrears.
In addition, Tanathi Water Works undertook intake works and a water treatment plant of capacity 10,000 cubic meters per day and 78km of pipeline for the Machakos Water Supply Project at a cost of Sh1.266Billion an amount that is still outstanding.
Further, the agency undertook a sewer treatment plant of capacity 12,500 cubic meters per day and for the construction of 60 Km trunks and laterals, four ablution blocks for the Machakos Sewerage Project at a cost of Sh840.4million for the Machakos Water and Sewerage Company.
The agency has also been undertaking Water supply to Matuu and Wote towns for the construction of Lateral sewer lines and individual connections for Kitui town at a cost of Sh859.9million.
Under the same project, the agency was to drill and equip 10 boreholes for the Kitui Water and Sanitation Company, Machakos Water and Sewerage Company and Wote Water and Sewerage Company.