Poor debt recovery, inefficiencies sinking Nairobi Water despite revenue increase » Capital News
NAIROBI, Kenya, Jul 23 – Nairobi City Water’s financial struggles are being compounded by inefficiencies, outdated tariffs, and unaccounted-for infrastructure, according to an Auditor General’s report presented to the Senate Public Investment Committee.
Governor Johnson Sakaja revealed that 51 per cent of Nairobi’s water is classified as non-revenue water, either lost through leakages or consumed without billing.
“We are now prioritizing a revenue monitoring unit, improved meter reading, and a credit control team to authenticate debts, especially those over 480 days,” Sakaja told senators on Tuesday.
The Governor also pointed to systemic issues such as outdated tariffs and unbooked water assets, saying the company maintains major dams and networks that were never transferred to its books as required by the Water Act.
“We’re pursuing a cost-reflective tariff through WASREB because the current regime does not match the cost of service delivery,” he explained.
While the company’s revenues have grown from Sh8 billion to nearly Sh12 billion in the past year, the Auditor General warned that poor debt recovery, coupled with inefficiencies, has left the utility in a negative working capital position.
“Even reorganizing these assets will not address the liquidity position. The company must act on current liabilities and assets,” the audit stated.
Sakaja emphasized that as a public utility, Nairobi Water cannot cut off access to slum dwellers for non-payment, terming it a public health imperative.
The Senate Committee urged the utility to expedite reforms, including updating tariffs, improving infrastructure accounting, and plugging losses from non-revenue water.