Governor Bii under fire as firm loses millions of shillings in unbilled water

The anomalies were highlighted in the Auditor-General Nancy Gathungu’s report for the financial year ended June 30, 2025, casting doubt on the Sh1.25 billion revenue declared by the company during the period.

Pointing to an “inside job,” the report indicated that the company could have lost up to Sh963.4 million in cancelled water bills. In some cases, previous meter readings were higher than current ones, suggesting interference.

The audit also revealed that 1,322 new meters had been installed without collecting the required deposits from new connections.

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“It was noted that 17 meters whose consumption readings were taken and recorded were not billed. Some 120 water bill payments made by customers through the bank amounting to Sh11.9 million were reversed,” the report read.

Appearing before the Senate County Public Investments and Special Funds Committee, Governor Bii admitted cancelling 3,917 transactions due to erroneous bills. He also explained that some meter readings were not billed because of a change in meter status or because the meters were connected to the network but not receiving water.

Regarding the reversed payments, he attributed the anomaly to transactions erroneously posted to the company’s suspense account and bouncing cheques.

The first-term governor was pressed by the committee, chaired by Vihiga Senator Godfrey Osotsi, on why Eldowas loses more than Sh373 million annually from water produced but not billed.

The audit report showed that the company produced 15.4 million cubic metres of water during the period but only billed 9.52 million, leaving 5.92 million cubic metres—38 percent of total production—unbilled, well above the 25 percent allowed by law.

Conduit for corruption

At an average tariff of Sh63 per cubic metre, the unbilled water resulted in losses of over Sh373 million that year, almost half of the Sh841 million Eldowas earns annually from water sales.

Governor Bii attributed the losses to water theft, meter inaccuracies, illegal connections, and ageing infrastructure.

“The volume of water not billed translates to over Sh1 million lost daily, yet your responses don’t show the company is serious about addressing the issue. If it continues like this, the people of Eldoret will not be getting value for money,” said Nominated Senator George Mbugua.

The governor was also questioned on the decision to write off Sh60 million of the Sh301.6 million owed to the company for debts over seven years.

The audit report shows that Eldowas is owed Sh687 million but also owes Sh297.2 million.

Migori Senator Eddy Oketch said the write-off could be a conduit for corruption, questioning whether the company had exhausted all efforts to recover the debts.

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“We cannot take these queries lightly. There must be clear strategies to recover the money. You cannot write off Sh60 million just because it has taken too long to collect,” said Mr Oketch.

Nominated Senator Hamida Kibwana added that the company has shown no concrete measures to recover debts, including disconnections.

Elgeyo Marakwet Senator William Kisang’ described the write-off as arbitrary and not compliant with the law, which caps the write-off amount at Sh100,000.

“Why would it take seven years to write a demand letter, then suddenly write off Sh60 million?” asked Machakos Senator Agnes Kavindu.

“The letters you have written are too polite to recover anything, yet you call them demand letters. You write like you are begging, yet it is your money,” added Senator Osotsi.

In response, Governor Bii said most affected customers are domestic, and while some have been taken to court, a majority cannot be traced.

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