The Senate County Public Investments and Special Funds Committee has directed the Ethics and Anti Corruption Commission to launch investigations into the ownership of five water companies in Murang'a county and provide a report in 30 days.
Murang'a Governor Irungu Kang'ata who appeared before the committee chaired by Vihiga Senator Godfrey Osotsi in Nairobi on Thusday revealed that out of the five water companies only one is owned by the county government.
The Senate committee directed Muranga county government to ensure the ownership of the four water companies in question goes back to the county administration in the next 30 days.
"This committee directs that all five water companies in Murang'a should be under management of the county government, our purpose is to ensure that this is complied within the next 30 days since they are meant to serve the interests of the area residents and not a few individuals," said Mr Osotsi.
He said that the county has 4,997 shares in Gatanga Water and Sanitation Company with the remaining three distributed to three directors of the firm; the other companies are Gatamathi Water and Sanitation Company, Murang'a Water and Sanitation Company (MUWASCO), Murang'a South Water and Sanitation Company (MUSWASCO) and Murang'a West Water and Sanitation Company (MUWWSCO).
The committee was told that out of 5,000 shares of MUSWASCO the county government owns only a single share while the 4,999 shares are in the hands of private individuals; however the company has no shares but is registered by guarantee with guarantors being the different directors represented there while MUWWSCO which is also registered by guarantee is controlled by private stakeholders.
Governor Kang'ata told the committee that the four water firms have been reluctant to transfer their ownership to the county government even after writing a letter to the four Managing Directors.
"We wrote letters to the four firms on April 11 to ensure they complete the transfer of ownership on or before June 30, 2023 but the response has been lukewarm, the Water Services Regulatory Board had on April 6, given all water service providers 90 days to ensure county governments are the function owners and shareholders of the water service providers," he said.
The governor informed the committee how his predecessor also faced the same frustrations when he tried to have the ownership of the water companies revert to the county government.
He said the managing directors simply do not want to give way and have been defying the law with a stakeholders meeting convened where they resolved not to comply.
Kangata revealed that President William Ruto, Deputy President Righathi Gachagua and Water Cabinet Secretary Alice Wahome have been informed about the challenge that the county is facing in seeking to have ownership of the five water companies revert to the county but the stakeholders in the sector have continued to be defiant.
The governor told the committee that some people have been sponsored to go to court to have the Water Service Regulatory Board circular be put on hold and that the stakeholders act with impunity and have been ignoring all measures put in place to revert the ownership of the companies back to the county.
Murang'a Senator Joseph Nyutu wondered why the Managing Directors of the four water companies are cautious about transferring the ownership to the county government, questioning why they want to remain under guarantee and not comply with Water Services Regulatory Board guidelines.
"We are aware that the stakeholders of the four water companies have held meetings and have decided that they will not allow them to revert to the county government of Murang'a by June 30 this year, the people of Murang'a are demanding for justice since we cannot have a few people holding them at ransom," said Mr Nyutu.
