Three water firms approved

Three water companies have received a clean bill of health from Auditor General Edward Ouko for effective utilisation of public funds and best management practices.

Nyahururu, Nyeri and Kahuti companies were given a clean bill of health out of the 72 public water companies in the country.

Mr Ouko certified the accounts after establishing the water companies adhered to the best management practices and international finance reporting standards.

Auditor focused on management of public funds and non-revenue water, among other key areas, during inspection of accounts.

In Kenya, non-revenue water is recommended not to be above 25 per cent of production.

Kahuti, a rural water provider in Murang’a, was singled out for its significant reduction of non-revenue water to 66 per cent from 92 per cent in 2016.

Non-revenue water is what is “lost” before it reaches the customer. Losses can be through leaks, theft or metering inaccuracies.

The Murang’a-based company accounted for 957,180 cubic metres and collected Sh54 million in revenue from over active 3,000 customers.

Managing Director Ephantus Kamau said despite challenges experienced, Kahuti received impressive rating from the auditor and Water Service Regulatory Board.

Nyeri Water and Sewerage Company (Nyewasco) non-revenue water was at 17 per cent (1,136,876 cubic metres). The company has over 29,000 active connections.

Posted profit

Nyewasco is the only company in Nyeri County that reported profits in the financial year and a 17 per cent non-revenue water loss.

This is below the global benchmark of non-revenue water which stands at 20 per cent. Nyewasco produced 6.3 million cubic metres of water and billed 5.2 million cubic metres.

The company’s sales turnover increased from Sh434 million against 406 million for the 2015/2016 financial year.

However, while Nyewasco made a profit of Sh54 Million in 2017, the amount was not enough to service a loan of Sh70 million at Treasury.

At Nyahururu in Laikipia, non-revenue water was at 43 per cent, down from 49 per cent in 2016.

The Auditor General report outlined that the company produced 1,920,469 cubic metres, out of which only 1,084,217 cubic metres were billed and generated Sh154 million.