The management of Githunguri Water and Sewerage Company came under intense scrutiny from the Kiambu County Assembly’s Public Investments and Accounts Committee (PIAC) over a series of audit queries and growing financial concerns.
During the session held on Tuesday, MCAs questioned the company over unexplained customer billing variances, rising non-revenue water losses, unsupported board payments, inaccurate financial records, and increasing liabilities that have raised concerns over the utility firm’s sustainability.
The committee session was chaired by Kikuyu Township MCA Kamau James Boro, who stood in for PIAC Chairperson Kennedy Odhiambo. Members of the committee said the Auditor General’s report for the financial year ending June 30, 2025, exposed deep operational and governance challenges within the company.
Managing Director Francis Kahuha appeared before the committee alongside Board Chairman Godfrey Kigochi and other board officials to respond to the audit concerns.
Among the key issues raised was the company’s inability to account for large volumes of water produced but not billed to consumers. MCAs noted that although the company reportedly produced about 1.4 million cubic metres of water, significantly lower amounts were reflected in customer billing records.
The committee also questioned the sharp rise in non-revenue water losses, which reportedly increased from 51 percent to 66 percent over the last five years.
Other concerns included unsupported board allowances, overdrawn accounts, irregular payment of seconded staff, failure to meet disability employment quotas, and repeated water disconnections by Nairobi City Water and Sewerage Company over unpaid debts.
MCAs further raised alarm over pending liabilities amounting to Ksh294 million against assets valued at only Ksh81 million, questioning the company’s long-term financial viability.
Ngoliba MCA Joachim Njama challenged the management on accountability, asking how the company could fail to account for water already supplied to consumers.
The committee also heard allegations that the company lacked a proper management structure, with claims that some board resolutions were allegedly not being implemented effectively.
In response, Managing Director Kahuha blamed the challenges on irregular water supply caused by rationing programmes by Nairobi City Water, rising electricity costs from Kenya Power, aging pipelines, and years of underinvestment in the sector.
He assured the committee that the management would implement recommendations from the Auditor General and introduce reforms aimed at improving accountability and operational efficiency.
Kahuha also pledged to implement human resource restructuring, productivity improvements, and transparent recruitment processes for vacant positions.
Kamau James Boro said the committee would continue pursuing the matter and conduct ground assessments to ensure transparency and accountability in the management of public resources.
The committee is expected to compile a report with recommendations for tabling before the County Assembly after concluding the scrutiny exercise.
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