Today, the Senate Committee on County Public Investments and Special Funds, chaired by Vihiga Senator Godfrey Osotsi, held a meeting scheduled with George Natembeya and Kenneth Lusaka, the Governors of Trans Nzoia and Bungoma Counties respectively. The meeting aimed to address concerns arising from the Auditor General's Report, scrutinising the financial statements of the Nzoia Water Services Company Limited, spanning from 2018 to 2021. Regrettably, only Governor Natembeya of Trans Nzoia County was present at the meeting, with Governor Lusaka of Bungoma County conspicuously absent without issuing any formal explanation.

The Auditor General’s report, shed light on several disconcerting financial inconsistencies and instances of non-compliance within the Nzoia Water and Sewerage Company Limited during the fiscal years 2018/2019 and 2019/2020. The company, entrusted with the provision of water and sanitation services, reported a profit of Kshs 7,876,903 in 2019/2020, yet experienced a subsequent loss of Kshs 16,387,607 in 2020/2021. This alarming financial downturn coincided with ongoing issues concerning Non-Revenue Water (NRW), which surged to an all-time high of 56%. Additionally, despite the company's deteriorating performance, board expenses saw an eye-catching increase of 69%.

The report underlined a number of financial irregularities such as unaccountable discrepancies in cash flows, unexplainable balances, and unsupported figures in equity statements. Other noteworthy issues included unjustified salary increments, neglected pension obligations, and questionable management of surplus funds. The lack of an as set register added a layer of complexity to an already worrisome situation.

Further issues of concern included complications with trade receivables, retirement contributions, budgetary control, non-compliance with the Memorandum and Articles of Association.

The Committee underscored the critical role of the Governors, given that the Nzoia Water Services Company Limited is co-owned by both counties, with Bungoma County holding the majority shares. As a result, the Committee resolved to reschedule the meeting to further deliberate on the audit reports, emphasising the need for both Governors to be present.

Furthermore, the Committee proposed that the Governors of Trans Nzoia and Bungoma Counties engage in a constructive dialogue concerning the water company's ownership. As a potential solution to the ongoing dispute, the Committee suggested the idea of establishing independent water companies for each county.

The meeting was attended by Senator Godfrey Osotsi, who was joined by fellow Senators including William Kisang, Tabitha Mutinda, Ledama Olekina, Karungo Thangwa, and Miraj Abdullahi Abdulrahman. Also in attendance were Senators Allang Chesang and Richard Onyonga from Trans Nzoia and Kisii counties respectively, who attended as friends of the committee.