Machakos County to merge six water companies amid losses

This came as scrutiny of the auditor-general’s report for the 2024/2025 financial year revealed a host of issues plaguing the water companies, worsening water shortages in the county.

The six water companies are Machakos Water and Sewerage Company (Machwasco), Mavoko Water and Sanitation Company, Mwala Water and Sanitation Company (MwalaWater), Yatta Water Services Company (YattaWaco), Kathiani Water and Sanitation Company (Kawasc), and Matungulu Kangundi Water and Sewerage Company.

The audit flagged massive losses due to non-billing, involving Sh231 million (Machakos Water), Sh134 million (Mavoko Water), Sh9.5 million (Matungulu-Kangundo Water), Sh35 million (Yatta), Sh5.5 million (Mwala), and Sh7.1 million (Kathiani).

Appearing before the Senate County Public Investment and Social Funds Committee, Governor Ndeti faced tough questions about the losses and measures instituted to address them.

She attributed the shortfalls and chronic water shortages to what she described as deliberate mismanagement and operational inefficiencies by company managers, as well as political interference.

“Some of these inefficiencies seem deliberate. We had a task force visit all these companies. Now we are moving to restructure them. The public lost funds through the managers who were there,” Governor Ndeti said.

The committee, led by Senator Godfrey Osotsi (Vihiga), heard that the water agencies operate through subsidiary companies that distribute water and collect revenue in violation of Water Services Regulatory Board (Wasreb) regulations.

This has led to the proliferation of water brokers in areas such as Mavoko, leaving estates without water.

“You cannot have someone who has been given a meter and is selling water to residents while the county receives nothing. We cannot allow people to sell a commodity that is not theirs,” Governor Ndeti said.

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In Machakos Water, for example, the audit showed that 32 percent of water produced was unbilled, exceeding the 25 percent threshold set by Wasreb.

While the county executive said it has engaged in debt collection, including disconnecting water and sending demand letters, the committee challenged the approach.

“We are talking about millions of shillings lost across five water companies. What are you doing to recover this money?” asked Machakos Senator Agnes Kavindu.

Mr Osotsi noted that long-outstanding receivables involve customers who have been billed but not paid. “These demand letters are reading like love letters. They should include court action if possible,” he said.

The auditor-general also highlighted failures to invest in technology, non-compliance with statutory deductions, delayed board appointments, incomplete projects, and disregard for ethnic composition thresholds.

None of the water companies had invested in smart meters, disadvantaging areas such as Everest Estate.

Legislators urged the county government to act decisively.

“We have had this problem for long, and we want to finish it,” said Migori Senator Eddy Oketch.

To address these issues, the county boss said the water companies will be merged into a single, monolithic water utility.

“I have taken administrative action against the water managers, although we have faced political interference. We have decided to form one company. It is already registered, gazetted, and a board is in place. We are now recruiting a CEO,” Governor Ndeti said.

The restructuring will extend to the wards, with supervisors appointed to monitor water bodies and resources, a move aimed at enhancing security, especially around dams.

The committee commended the merger, urging the county government to work closely with Wasreb and ensure proper feasibility studies and public participation.

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