Merging of water companies run in to fresh troubles

Kiambu Governor Ferdinand Waititu speaking recently at the county headquarters.He went ahead to dissolve eight water companies in the county last week despite a court order barring any dissolution. [PHOTO:KAMAU MAICHUHIE.]

The country's water services regulator has called a meeting over the dissolution of a water firm.

Thika Water and Sewerage Company (Thiwasco) was one of eight companies that were dissolved early this year by the county government to form the Kiambu Water and Sewerage Company Limited (KWSCL).

In an advert in a local daily, the Water Services Regulatory Board (Wasreb), which sets the rules and enforces standards in the sector, is seeking public input after stakeholders in Thiwasco moved to court to protest its dissolution.

“We wish to advise that a public participation for Thiwasco will be held on October 23 at Blue Post Hotel,” said Wasreb CEO Robert Gakubia.

In April, former Transition Authority chairman Kinuthia Wamwangi, Thika District Business Association and Jamhuri Ofafa Starehe Welfare Association jointly went to court seeking to block implementation of legislation that folded the water firms into a single entity.

The petitioners named the Attorney General, Kiambu Government, Wasreb and Thiwasco as respondents in the suit.

The High Court in Nairobi issued orders barring the Kiambu Government from merging the firms. Governor Ferdinand Waititu (pictured), however, went ahead and presided over a function where the companies were dissolved, and announced the creation of KWSCL.

The governor said the move was aimed at improving access to clean water.

In the same month, Wasreb had also taken out an advertisement questioning the legality of KWSCL as proposed by Mr Waititu.

The communiqué indicated that while having the company would be the first step by the county to achieve its vision, it was important that legal and regulatory positions be clarified for consumer protection and sustainability of the water services sector.

“... No information has been received on compliance with regulatory requirements in terms of viability and sustainability of the new entity under the Water Act 2016,” said Gakubia.

In the advert, Wasreb indicated that the initiation and completion of the contemplated process, under the Companies Act 2015 and the Insolvency Act 2015, was yet to be finalised.

The CEO noted that the Limuru, Kikuyu, Karuri, Ruiru Juja, Thika, Kiambu, Githunguri, and Gatundu water and sewerage companies continued to be listed as no winding up orders had been communicated to them.

“Consumers in the service areas of the companies above are therefore advised to continue obtaining services and paying bills to the respective companies,” said Gakubia.

But the Wasreb boss also said the regulator supported the clustering of water companies to achieve economies of scale and facilitate sustainability in the provision of services.