Blue Economy, Water and Irrigation Committee Meets Stakeholders Over the Senate Amendments to the Water Amendment Bill

The Blue Economy, Water and Irrigation Committee led by the Chairperson, Hon. Kangogo Bowen (Marakwet East), has met with the Cabinet Secretary, Ministry of Water, Sanitation and Irrigation Mr. Zachariah Njeru, to deliberate on the Senate Amendments to the Water (Amendment) Bill, 2023.

The Bill seeks to amend the Water Act, 2016; to provide for Public Private Partnership (PPP) arrangements in financing development of water works, by the National and County government agencies for operations and maintenance of water services, storage facilities, treatment plants, laying mainlines, bulk water supply and last mile connectivity by the Counties, in accordance with the PPP Act, 2021.

In his opening remarks, Hon. Bowen noted that water service is a devolved function, emphasizing that there is need to make laws for posterity.

“The reason why we are here is to ensure that we carry out our legislative function effectively, by making laws that can help our people to access water as per Article 43 of the Constitution.” Said Hon. Bowen.

The Ministry has proposed Clause 3 to be retained as it was in the Bill, which seeks to amend Section 32 of the principal Act, in relation to investors entering into bulk water purchase agreements, in accordance with the provisions of the PPP Act.

Senate has proposed to amend the Bill to provide that bulk water storage agreements entered into by the National Water Storage Authority should be subject to the economic efficiency criteria set by the Regulatory Board. The Ministry noted that Section 32 provides an elaborate legal and institutional framework which determines the viability of the project.

Members noted that there is need to have a clear definition of what volume is considered to be bulk water, with the Ministry responding that there has to be a bulk meter to determine that, and therefore small quantity does not suffice.

The Ministry conceded with the proposed amendment by the Senate to delete Section 68A (2) amendment on the Bill, requiring the Cabinet Secretary to publish the standards and conditions of licensing of water works development agencies. The Ministry observed that Section 72 of the Water Act, 2016; empowers the Regulatory Board to publish regulatory standards, without the approval of the Cabinet Secretary.

Hon. Joshua Irungu, Laikipia County Governor, and the Vice-Chair of the COG Committee of Water and Natural resources, also presented his submissions on behalf of the Council of Governors (COG).

COG agrees with most of the amendments by the Senate, as they include County Water Service Providers (WSPs) in bulk water service provision arrangements, entrenchment of cross-county WSPs in the law and requirement for consultation of County governments before Water Works Development Agencies (WWDAs) engage investors.

However, COG notes that WWDAs may choose to enter into bulk water purchase agreements with either private investors or WSPs.

“We note that this raises the threat of private investors getting more opportunities due to economies of scale. The Council urges the Assembly to entrench a certain percentage of opportunities for County WSPs to ensure equity and motivate these entities to become commercially viable.” Stated Hon. Irungu.

Hon. Irungu further emphasized that there is need to align the Water Act, 2016 as a whole to the Constitution, by reviewing the roles of various institutions that claw back on the functions of County Governments.

“There is also need to harmonize and mainstream the role of County governments in the entire chain of institutional framework of provision, regulation and overall management of water services.” Said Hon. Irungu.

The Committee shall be preparing a report factoring in all the submissions from the stakeholders, before tabling the report in the House.