The water services regulator has expressed concern about Kiambu County's plan to dissolve eight water companies and replace them with one entity.
In an advertisement, the Water Services Regulatory Board (Wasreb), which sets the rules and enforces standards in the sector, questioned the legality of the Kiambu Water and Sewerage Company Limited proposed by the administration of Governor Ferdinand Waititu (pictured).
The advertisement, signed by Wasreb Chief Executive Officer Robert Gakubia, indicated that while the company would be the first step by the county to achieve its vision, it was important that the legal and regulatory position be clarified for consumer protection and sustainability of the water services sector.
“... no information has been received on compliance with regulatory requirements in terms of viability and sustainability of the new entity under the Water Act 2016,” he said.
Contemplated process
In the advert, Wasreb indicated that the initiation and completion of the contemplated process, under the Companies Act 2015 and the Insolvency Act 2015, has yet to be finalised.
The CEO said the Limuru, Kikuyu, Karuri, Ruiru Juja, Thika, Kiambu, Githunguri, and Gatundu water and sewerage companies continue to be listed as no winding up orders had been communicated to them.
“Consumers in the service area of the companies above are therefore advised to continue obtaining services and paying bills to the respective companies,” Mr Gakubia said.
However, he added that the regulator supported the clustering of water companies to achieve economies of scale and facilitate sustainability in the provision of services.
Some residents have filed a petition in court to challenge the dissolution of the companies.
Last week the High Court ordered the county government not to merge the firms.
