Africa-Press – Kenya. Athi Water Works Development Agency CEO Joseph Kamau, when he appeared before the Committee on Blue Economy, Water and Irrigation Douglas Okiddy The Athi Water Works Development Agency is losing nearly Sh1.2 billion annually in uncollected revenue, amid growing inefficiencies in water bill collection.
This is 56 per cent of the total collection, compared to only Sh1 billion (44 per cent) that the state agency collects on average every year, officials told a parliamentary committee.
Appearing before the National Assembly Committee on Blue Economy, Water and Irrigation, the agency’s Chief Executive Officer, engineer Joseph Kamau, revealed that the agency is only able to collect about 44 per cent of billed revenue, leaving more than half uncollected
According to data tabled before the committee, the agency bills roughly Sh186 million monthly, translating to about Sh2.2 billion annually.
However, low collection efficiency from Water Service Providers (WSPs) has significantly undermined revenue performance.
“We are now, from the time we started, at 44 percent. So, we are expecting to collect around Sh1 billion this financial year; these revenues are dictated by the tariff, with a large amount of this money being collected and going to the treasury towards public payment for the loans that were taken to develop the water supply systems,” Kamau told the committee.
To address the shortfall, the agency is seeking support from the Kenya Revenue Authority to take over the collection of revenues on its behalf.
Kamau told the committee chaired by Marakwet East’s Kangogo Bowen that a significant portion of the revenue collected is channelled towards loan repayments to the National Treasury, limiting the agency’s operational flexibility.
“We don’t have an enforcement capacity; that is why we are in talks with KRA to collect revenue on our behalf since the law mandates them as primary revenue collectors. They have the powers to analyse the accounts of these providers and enforce the collections,” said Kamau.
With support from KRA the agency says that it will be targeting to collect between 70 and 80 per cent of the revenues.
The agency noted that water tariffs largely dictate revenue flows, with funds strictly appropriated and regulated by Parliament.
At the same time, the agency continues to rely on government allocations for operational costs, including staff expenses and infrastructure maintenance.
Athi Water officials also raised concerns over Value Added Tax (VAT) obligations on projects, noting that efforts to secure waivers have been unsuccessful.
They called on Parliament to consider appropriating funds to cover VAT costs, warning that contractors’ accounts risk being frozen over unpaid taxes.
Lawmakers led by Bowen questioned delays in project implementation, particularly where some initiatives are reported as nearly complete but continue to receive allocations.
The agency clarified that funding gaps have slowed progress, especially for large-scale projects such as the Maragua 4 Dam, a strategic water source expected to supply Nairobi with up to 180,000 cubic metres of water daily.
The project, estimated to cost Sh16 billion, remains underfunded, with design work only 80 per cent complete.
Officials attributed delays to staggered funding, noting that insufficient allocations prevent timely completion of feasibility studies and designs.
“Inadequate budgetary allocation for the ongoing government financed projects. The budgetary requirements for the ongoing projects is Sh1.7billion which will be requested under supplementary I,” said the CEO.
The Karimenu Dam project also emerged as a concern, with officials citing delays in compensating residents living within the reservoir area. The agency requires approximately Sh1.2 billion to relocate affected communities and establish a buffer zone to prevent encroachment.
Despite assurances that the dam is structurally safe, lawmakers warned of potential risks if relocation is not expedited, especially amid changing weather patterns.
The committee expressed frustration over prolonged project timelines and lack of clarity on budget allocations, particularly for boreholes and partially completed projects.
They also raised concerns about the gap between presidential project announcements and actual implementation, urging better planning and funding to ensure timely delivery.
In response, the committee acknowledged that budgetary constraints often affect execution, noting that government spending is dependent on revenue collected and may require adjustments through supplementary budgets.
