Sh10 billion lost in water billing gaps across 15 counties

Sh10 billion lost in water billing gaps across 15 counties
Technicians fixing a water pipe. PHOTO/KNA
In Summary

Smaller but still troubling losses were seen in Siaya, Bomet, Narok, and Lodwar, each ranging between Sh53 million and Sh102 million.

An alarming amount of water processed by county firms never reaches billing systems, a new Senate report has revealed.

At least 15 water companies across the country lost Sh10.5 billion in the last financial year alone due to non-revenue water.

The Senate County Public Investments and Special Funds Committee traced the losses to illegal water connections, burst pipes, and lack of accurate metering.

Presenting the findings in the Senate, Committee Chairperson Godfrey Osotsi said some firms failed to record the volume of water they produced, making revenue tracking nearly impossible.

Top on the list was Nairobi City Water and Sewerage Company, with a reported loss of Sh8.5 billion.

Other major losses were recorded in Mombasa (Sh1 billion), Kericho (Sh199.4 million), Kwale (Sh183.3 million), and Kitui (Sh110.1 million).

Smaller but still troubling losses were seen in Siaya, Bomet, Narok, and Lodwar, each ranging between Sh53 million and Sh102 million.

The committee found widespread failure to bill consumers for large amounts of water produced, with some firms losing more than half of their 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realise their full revenue potential due to the high rate of water loss through non-revenue water, low metering ratios, outdated pricing models, and high operations and maintenance costs that fail to match the revenue generated," said Senator Osotsi.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 report showed that Busia Water and Sewerage Company produced 1.2 million cubic metres of water but billed for only 33%. Kirinyaga fared no better, with 60 % of its water going unbilled, resulting in a Sh470.6 million loss.

The pattern repeated in other counties.

Iten-Tambach lost 32 per cent of its output, Migori lost 48 per cent, and Nanyuki lost 40%.

Nithi Water and Sanitation Company had the highest percentage loss at 62.6%, equivalent to 2.2 million cubic metres or Sh4 million.

The losses were made worse by the failure to install proper metering systems.

Cherang’any Marakwet Water and Sanitation Company came under particular scrutiny for having no master meter or consumer 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.

Companies from other counties, including Kajiado, Vihiga, Homa Bay, Samburu, Makueni, and Migori, also reported high levels of unaccounted water.

Most losses were blamed on broken systems, poor planning, and illegal water use.

The committee proposed the use of Geographic Information Systems and smart meters for real-time monitoring and accurate billing.

It also advised water firms to replace outdated infrastructure and introduce firm anti-corruption measures to deal with illegal connections.

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