Audit exposes massive water theft, leakages in county water companies
Nairobi City Water and Sanitation Company recorded the highest loss at Sh8.57 billion, followed by Mombasa Water and Sanitation Company at Sh1.04 billion.
County water service providers are losing billions through unbilled consumption, a new report by Auditor-General Nancy Gathungu has revealed.
The audit for the 2023-2024 financial year shows that 76 out of 87 companies posted a combined loss of Sh15.9 billion, exposing deep challenges in billing and revenue collection.
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Nairobi City Water and Sanitation Company recorded the highest loss at Sh8.57 billion, followed by Mombasa Water and Sanitation Company at Sh1.04 billion.
The audit established that only 235.98 million cubic metres of the 440.39 million cubic metres produced were billed, leaving 204.41 million cubic metres unaccounted for.
This translates to a 46 per cent loss, nearly double the 25 per cent ceiling allowed by the Water Services Regulatory Board.
The Auditor-General attributed the losses to widespread illegal connections, outdated metering, leakages from dilapidated infrastructure, and reliance on flat-rate billing.
“This includes water lost through physical leaks, malfunctioning meters, and unauthorised consumption,” she explained in the audit released on July 11, 2025.
While total revenue collections rose from Sh30.2 billion in 2021-2022 to Sh33.7 billion in 2023-2024, representing a 12 per cent increase, Sh11.1 billion remained uncollected.
Only Naivasha, Malindi, and Meru water companies managed to meet the regulatory requirement of keeping non-revenue water at 25 per cent or below.
Some companies exceeded their revenue targets, helped in part by government grants. Garissa Water and Sewerage Company emerged top, collecting Sh769.5 million against a target of Sh395.2 million, reflecting 195 per cent performance.
Other strong performers were Githunguri, Nyanas, Gulf, Muranga West, Othaya Mukurweini, Kathiani, and Isiolo water companies.
The audit further uncovered problems in financial reporting. Twenty-one firms had errors in asset and liability disclosures worth Sh1.79 billion, while seven others misclassified expenses totalling Sh715.1 million.
The report calls for urgent measures to seal losses, strengthen billing systems, and improve accountability to safeguard public funds.
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