The Senate Committee on County Public Investments and Special Funds, chaired by Vihiga Senator Godfrey Osotsi, convened today to address concerns raised by the Auditor General's Report on the Financial Statements of Nithi Water and Sanitation Company Limited for the Financial Years 2018-2021. The Governor of Tharaka Nithi County, Muthomi Njuki, was invited to respond to these findings.

After reviewing the Auditor General’s Report and considering the Governor’s responses, the committee made several resolutions.

Firstly, the Committee raised concerns about transferring assets from the defunct local authority, Municipality of Chuka Township, to Nithi Water and Sanitation Company Limited. Not all assets were transferred, and it was found that the National Government's Lands Department shared the land with County entities. To address this, the Committee directed the County Government, in consultation with the Inter-governmental Relations Technical Committee (IGRTC), to ensure the transfer of all assets to the County Government within 60 days. Also, the Governor was told to get in touch with the relevant National Government entity within 120 days to resolve the matter amicably.

Secondly, the Committee expressed concern about the Non-Revenue Water, which stood at a staggering 62.2%, far above the recommended threshold of 25% set by the Water Services Regulatory Board (WASREB) guidelines. To tackle this issue, the County Government must implement clear and actionable measures to address both physical and commercial losses causing the high Non-Revenue Water. A comprehensive report detailing these measures must be submitted to the Committee within 60 days. Furthermore, the Office of the Auditor-General will verify the effectiveness of these measures in the subsequent audit cycle.

Another major concern raised by the Committee was the outstanding trade receivables, which amounted to Kshs 60,689,129 in the year under review. Government institutions, such as Kenya Revenue Authority, Kenya Prisons, and Kenya Forests Services, were identified as debtors to the water company. To remedy this issue, the County Government must establish a debt recovery plan and submit it to the Committee and the Office of the Auditor-General for verification within 60 days. Additionally, the County Government is required to enter into Payment Agreements with these institutions and recover the outstanding amounts within 90 days. The Office of the Auditor-General will report on the progress of this matter in the next audit cycle.

Lastly, the Governor was given 60 days to ensure that Nithi Water and Sanitation Company Limited is fully owned by the County Government of Tharaka Nithi, in compliance with the Water Act of 2016 and other relevant laws.

During the meeting, Senator Osotsi was joined by Committee members, including Senators William Kisang and Tabitha Mutinda. Senator Gataya Mo Fire was also present as a friend of the Committee.