Reference is made to the supplement appearing in the Daily Nation 20th April 2018, placed by the County Government of Kiambu on the launch of a merged water company, referred to as Kiambu Water Company, to serve Kiambu County.
Wasreb supports the concept of clustering water companies to achieve economies of scale and facilitate sustainability in the provision of water services. While the proposed company could be a first step by the county in achieving its vision, it is important that the legal and regulatory position is clarified for consumer protection and sustainability of the water services sector.
According to the information within the purview of Wasreb, 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. Wasreb is aware that the County Government has yet to legally take over/ merge the businesses of the existing licensed water service providers in the County, as initiation and completion of the contemplated due process under the Companies Act 2015 and Insolvency Act 2015 are yet to be finalised on:
- Commercial viability
- Loan and liability repayments
- Asset transfers
- Human resource management and pension issues
- Ongoing infrastructure projects
- Funding proposals at advanced stage of the project cycle based on financial modelling of the existing companies.
The licensed companies within the County continue to be as listed below, as no winding up orders have been communicated.
- Limuru Water and Sewerage Company
- Kikuyu Water Company
- Karuri Water and Sanitation Company
- Ruiru Juja Water and Sewerage Company
- Thika Water and Sewerage Company
- Kiambu Water and Sewerage Company
- Githunguri Water and Sanitation Company
- Gatundu Water and Sanitation Company
Consumers in the service area of the companies above are therefore advised to continue obtaining services and paying bills to the respective companies.
Wasreb will continue to provide technical assistance and advice to the County Government in its vision to create viable and sustainable water service providers who must adhere to the precepts of the law.
Eng. Robert Gakubia
Chief Executive Officer