A Senate watchdog committee has given the Bungoma and Trans Nzoia governors 30 days to resolve an ownership dispute that threatens to ground the operations of Nzoia Water Services Company (Nzowasco).
The two counties are embroiled in a tussle over the management of the company, with each claiming control of the firm.
The dispute has been blamed for sinking the firm into a loss of Sh16 million in the fiscal year ended June 2021 after it made profits of Sh7 million in the two previous financial years.
The Senate County Public Investments and Special Funds committee has asked Bungoma Governor Ken Lusaka and his Trans Nzoia counterpart George Natembeya to amicably resolve the management dispute before the end of this month.
The committee, chaired by Vihiga Senator Godfrey Osotsi, added that should the two see it fit to split the company to end the impasse, then the process should be done within the law.
“The two counties must continue giving full support to the water company for continued water supply to residents,” said Mr Osotsi.
The stalemate has seen the water firm suffer financial constraints since none of the two counties is willing to finance it, thus hampering its operations.
Each county government is claiming majority shareholding in the company and attempts to midwife a truce since 2021 have failed.
“This relationship is bad and divorce is the best thing. Psychologically, we see Trans Nzoia are already gone as they want to do their own things. You can set the timeline for the separation to end this row,” said Mr Lusaka.
He said his administration is already working towards the separation and are waiting for a task force report to be tabled on August 28. The governor said the report will inform the sharing of the assets, liabilities and workforce between the two counties.
“Recommendations from the task force will help us get a roadmap of resolving this dispute and starting our own company,” he said.
Bungoma Senator Wafula Wakoli said that as much as there might be looming separation, residents must continue receiving water supply.
Last month, Mr Natembeya said attempts to resolve the issue of shareholding of the water company between the two counties has been like “flogging a dead horse”.
He pointed out that the running and management of the water firm is being done by the board and his administration has mostly been kept in the dark.
“I can tell you without fear of contradiction that the managing director of the company has not had any engagement with me since I took over as governor last year,” said Mr Natembeya.
Further, he said, the board of directors is divided and is currently operating without a chairperson after directors from each county propped their own chairperson.
