Nairobi, Mombasa lead in billions lost to unbilled water
Auditor-General Gathungu attributed the losses to illegal connections, faulty meters, leakages in aging pipelines, and flat-rate billing.
Most of Kenya’s county water companies are losing billions due to unbilled water, Auditor-General Nancy Gathungu has revealed. The latest audit covering the 2023-2024 financial year shows that 76 of the 87 water firms recorded a combined loss of Sh15.9 billion from water that was supplied but not billed.
Nairobi City Water and Sanitation Company and Mombasa Water and Sanitation Company bore the largest losses, amounting to Sh8.57 billion and Sh1.04 billion respectively.
The report found that only 235.98 million cubic metres of the 440.39 million cubic metres produced were billed, meaning nearly 54 percent of water was unaccounted for, far above the regulatory limit of 25 percent.
Auditor-General Gathungu attributed the losses to illegal connections, faulty meters, leakages in aging pipelines, and flat-rate billing.
“This includes water lost through physical leaks, malfunctioning meters, and unauthorised consumption,” she stated in the audit released on July 11, 2025.
Revenue collection improved slightly, rising from Sh30.2 billion in 2021-2022 to Sh33.7 billion in 2023-2024, a 12 percent increase, yet Sh11.1 billion still remained uncollected.
Only three firms—Naivasha, Malindi, and Meru Water and Sewerage Companies—met the Water Services Regulatory Board’s 25 percent non-revenue water standard.
The audit highlighted top performers exceeding revenue targets, in part due to grants. Garissa Water and Sewerage Company led the way, collecting Sh769.5 million against a target of Sh395.2 million, achieving 195 percent of its goal.
Others performing well included Githunguri, Nyanas, Gulf, Muranga West, Othaya Mukurweini, Kathiani, and Isiolo water companies.
The report also exposed weaknesses in asset and expenditure reporting. Twenty-one companies had misstatements in asset and liability disclosures worth Sh1.79 billion, while seven firms misclassified expenses totaling Sh715.1 million.
The findings underline the need for water companies to improve billing systems, reduce losses, and strengthen transparency to safeguard public resources.
