Water services firm struggles to pay Sh18m power debt

By Robert Nyasato

Gusii Water and Sanitation Company (Gwasco) has invested Sh2.5 million to improve service delivery. However, a portion of the funds will be used to service a huge power debt it owes the Kenya Power and Lighting Company (KPLC). Gwasco Managing Director, Engineer Richard Onyari said the firm used some of the funds to buy a new vehicle and three motorcycles for emergencies.

"This is part of our plan to enhance servicing of our customers’ needs," Onyari said at the firm’s offices in Kisii yesterday.

He said motorbikes will be used to deliver customer bills and also enable the officers attend to emergencies like fixing broken pipes. The MD said a huge portion of the company’s revenue is used to pay electricity bills. This has forced the firm to look for alternative sources of power to deal with the challenge. Gwasco provides water and sanitary services for residents of 13 districts in the larger Kisii.

Huge Debt

This is why the firm required Sh50 million to generate its own electricity to satisfy growing demand. The company spends Sh1.5 million on electricity a month, a figure beyond their means hence the frequent power outages. While flagging off the motor vehicles, Onyari said Gwasco inherited a debt of Sh18 million in electricity bills owed to KPLC.

The firm has cleared Sh9 million, he said.