The Senate Committee on County Public Investments and Special Funds, chaired by Godfrey Osotsi, on Tuesday met Gideon Mung'aro and his executive team to examine the Auditor General’s reports on Kilifi County entities, including Kilifi Municipality, Mariakani Municipality, Mtwapa Municipality, Malindi Municipality, Watamu Municipality, Kilifi Mariakani Water and Sewerage Company, and Malindi Water and Sewerage Company.

After addressing governance and financial control weaknesses across the municipalities, the Committee turned sharply to the water sector, where audit findings painted a grim picture of operational failure and financial distress.

At Malindi Water, Non Revenue Water rose alarmingly from 16 per cent in the previous financial year to 42 per cent in 2024–2025. Senator Osotsi questioned how such a drastic spike could occur without clear accountability. “A jump of this magnitude is not normal. It raises a serious question about whether water is being lost through leaks, theft, or deliberate manipulation,” he said.

Both Malindi Water and Kilifi Mariakani Water were flagged by the Auditor General as technically insolvent, with material uncertainty over their ability to continue operating. Senators questioned why the County continued to inject funds into entities that could not meet basic sustainability tests.

Raphael Chimera dismissed the management explanations as evasive. “You cannot tell us you are insolvent and at the same time claim everything is under control. That contradiction is exactly what worries this Committee,” he said, warning that unchecked NRW was bleeding the companies dry.

Governor Mung’aro acknowledged the challenges but asked the Committee for time. “We have put turnaround strategies in place to reduce Non Revenue Water and return these companies to profitability,” he said, without providing timelines or costed targets.

Senator Osotsi questioned the credibility of the response. “Hope is not a strategy. Until you tell us how much is lost, who is responsible, and when it will stop, this Committee remains unconvinced,” he said.