See Senate Committee Takes Decisive Actions to Address Financial Concerns in Laikipia County Water Companies
Today, the Senate Committee on County Public Investments and Special Funds (CPISFC), under the leadership of Senator Godfrey Osotsi, convened with Governor Joshua Irungu of Laikipia County. The primary focus of this gathering was to tackle pressing issues stemming from the Auditor General’s Report on the Financial Statements for the Financial Year 2018-2020 regarding two water utility firms in the county.
After meticulous scrutiny of the Auditor-General’s Report and careful consideration of Governor Irungu’s responses regarding Nyahururu Water and Sewerage Company Limited and Nanyuki Water and Sewerage Company Limited, the CPISFC has embarked on a series of resolute actions geared towards fostering transparency and responsible financial management within these water utility companies in Laikipia County. The Committee, in its wisdom, has put forth a set of recommendations that promise to reshape the landscape of these entities.
Foremost among the Committee’s findings was the observation of irregularities in the constitution of the Board of Directors of Nyahururu Water and Sanitation Company Limited. Consequently, the Committee directed Governor Irungu to rectify this discrepancy by aligning board appointments with the Water Act of 2016 and the guidelines set forth by the Water Services Regulatory Board (WASREB). Furthermore, the Governor has been mandated to provide an updated copy of the CR-12 within the next 60 days for verification purposes.
Both water companies came under scrutiny for their approaches to dealing with Non-Revenue Water. In light of this, the Committee has tasked the Auditor-General with the responsibility of verifying the effectiveness of the measures employed by these companies in subsequent audits.
Another glaring issue that came to light was the unauthorized utilization of customer deposits within both companies. In response, Governor Irungu has been given a strict ultimatum of seven days to furnish evidence of ongoing refunds to deposit accounts. The Auditor-General has been entrusted with the responsibility of closely scrutinizing this matter in future audits.
Nyahururu Water and Sanitation Company Limited has been grappling with financial losses and negative working capital. As a remedial measure, Governor Irungu has been granted a 60-day window to implement necessary measures aimed at restoring the company’s financial stability.
High trade receivables were observed in both companies over the reviewed years. To address this issue, the Governor has been directed to establish a comprehensive Debt Recovery Plan, which must be submitted for verification within 30 days. Additionally, a debtor schedule and receivables schedule are to be submitted within 7 days.
The Governor has also been tasked with pursuing ownership documents for assets that were transferred from the Water Works Agencies to the Water Companies.
In addition to Senator Osotsi, the meeting saw the presence of Vice-Chair Senator Prof Tom Ojienda, as well as Senators William Kisang, Miraj Abdillahi, Tabitha Mutiunda, Ledama Olekina, Eddy Oketch, Karungo Thangwa, and Hamida Kibwana. The Senator of Laikipia County John Nderitu also attended as a friend of the committee.
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