Leakages and inadequate tracking cause water firms in 15 counties to lose Sh10.5 billion
Non-revenue water, mainly due to illegal connections and system leakages, has raised concern over the management of the water companies.
A major shortfall in revenue has hit 15 water service companies in various counties, exposing long-standing problems in infrastructure and billing systems.
The Senate County Public Investments and Special Funds Committee has reported that these water firms collectively lost Sh10.5 billion due to unbilled water over the last financial year.
More To Read
Non-revenue water, mainly due to illegal connections and system leakages, has raised concern over the management of the water companies.
Senator Godfrey Osotsi, who chairs the committee, presented the report to the Senate, highlighting poor recordkeeping and faulty infrastructure as central issues.
According to the report, the Nairobi City Water and Sewerage Company posted the largest loss at Sh8.5 billion.
Mombasa Water and Sanitation Company followed with Sh1 billion, while Kericho, Kwale, Kitui, and Siaya counties’ firms reported losses ranging between Sh100 million and Sh200 million.
The report shows that companies in Lodwar, Bomet, and Narok also faced heavy losses, ranging from Sh53 million to Sh89 million.
No proper records
Many firms failed to keep proper records of their water output, making tracking and billing extremely difficult.
Busia and Kirinyaga counties had the highest percentage of losses. In Busia, the firm billed only 33 per cent of its water production, while Kirinyaga lost 60 per cent of its output.
“The water firms were unable to realise their full revenue potential due to the high rate of water loss through non-revenue water, low metering ratios, outdated pricing models, and high operations and maintenance costs that fail to match the revenue generated,” said Senator Osotsi.
The figures paint a grim picture of wasted resources. Busia Water and Sewerage Company Limited produced 1.2 million cubic metres but only accounted for 402,028 cubic metres.
Kirinyaga Water and Sanitation Company Limited produced 6.72 million cubic metres but billed only 2.7 million, losing Sh470.6 million.
Untracked consumption
The committee found that low metering coverage left a large portion of consumed water untracked.
Iten-Tambach Water and Sewerage Company billed for only 681,765 cubic metres out of one million produced, while Migori billed 249,801 cubic metres from 481,921 cubic metres, resulting in a Sh13.89 million loss.
Nanyuki’s company lost Sh12.6 million after failing to bill for 1.87 million cubic metres, about 40 per cent of the water it produced. Nithi Water and Sanitation Company Limited had a 62.6 per cent loss, billing just 1.32 million cubic metres from 3.5 million produced.
Other affected counties included Kajiado, Makueni, Vihiga, Samburu, Homa Bay, and Migori. Most of these losses were attributed to burst pipes, poor infrastructure, and illegal water connections.
Master meters
The committee criticised firms, such as Cherang’any Marakwet Water and Sanitation Company, for not installing master meters or client meters.
“For instance, during the year under review, Cherang’any Marakwet Water and Sanitation Company Limited neither installed a master meter nor provided meters to its clients, Osotsi said.
The committee recommends that all water companies adopt real-time monitoring through geographic information systems and smart meters to track leaks and usage.
It also called for the replacement of broken infrastructure and the enforcement of anti-corruption rules to curb illegal water use.
The financial losses from unbilled water serve as a stark reminder that county water management urgently needs reform.
In December 2024, Cabinet Secretary for Water, Sanitation and Irrigation Eric Mugaa called for urgent measures to address the high levels of non-revenue water (NRW) across the country.
The CS revealed that according to the Financial Year 2022-2023 performance report by the Water Services Regulatory Board, NRW, a measure of water lost through leakages, theft, or inefficiency, stands at an alarming 60 per cent, far above the national average of 43 per cent.
"No water service provider in any of the 47 counties has attained the acceptable NRW benchmark. This is a clear indicator that much more needs to be done to improve operational efficiency," Mugaa stated.
Top Stories Today
