KIMWASCO and KITWASCO, the main water-supplying utilities in Kitui County, are at serious risk of operational collapse amid mounting financial strain, weak internal controls, and persistent service failures.
Channel 15 News can now authoritatively report—backed by Senate audit findings, a County Assembly of Kitui oversight report dated 8th October, and exclusive interviews with senior officials inside the two companies—that the utilities are struggling to meet basic obligations even as thousands of residents continue to endure chronic water shortages.
This grim reality formed the backdrop of Governor Julius Malombe’s appearance before the Senate County Public Investment and Special Funds Committee, where auditors laid bare the fragile state of the two water firms. Senators warned that the crisis unfolding inside KIMWASCO and KITWASCO directly explains why taps remain dry across large parts of Kitui County—despite years of promises, flagship projects, and increased county allocations to the water sector.
Audit reports presented to the Senate and which Channel 15 News has copies, reveals that KIMWASCO is operating with a negative working capital of Ksh 40.9 million, while KITWASCO posted losses of Ksh 19.6 million during the year under review—clear indicators that both companies are spending more than they earn.
The Senate flagged a “material uncertainty” over the companies’ ability to continue as going concerns, raising fears that the utilities could collapse without urgent intervention.Notably, these concerns had already been raised locally months earlier.
On 8th October, the County Assembly of Kitui, through its oversight committees, tabled a report warning of serious financial and operational weaknesses within KIMWASCO and KITWASCO. Assembly members cited poor revenue collection, ballooning debts, stalled projects, and weak governance structures—findings that now mirror the issues exposed by Senate auditors in Nairobi.
Channel 15 News has further established through confidential interviews with senior officials inside the two utilities that cash-flow crises have become routine, statutory deductions often go unpaid, and emergency decisions are sometimes made outside approved procedures.
Several insiders described institutions operating in “survival mode,” where funds are shifted internally to keep basic operations running.
These internal pressures spilled into the open during the Senate session when it emerged that customer deposits had been borrowed without authorization.
KIMWASCO admitted to using Ksh 9.3 million from customer deposits to survive pump failures, while KITWASCO diverted Ksh 19.6 million to finance projects, including the troubled Ilimukuyu Dam. Senators questioned the legality of these actions, warning that residents’ deposits cannot be treated as emergency credit lines.
The stalled Ilimukuyu Dam project emerged as a key symbol of the broader dysfunction. Despite full payment to the contractor, the project stalled at 70 per cent completion, while KITWASCO continues to record a staggering 46 per cent Non-Revenue Water (NRW)—a level senators described as unsustainable for any water utility.
As officials defended their records in Nairobi, residents on the ground told a different story. In Kitui Town, Peter Nzau, a Kalundu resident, told Channel 15 News that water supply has become erratic and unreliable. “Sometimes water comes once a week, sometimes not at all. We still receive bills, but the taps are dry,” he said.
In Chuluni, Kavinya Waambua told said families are increasingly forced to rely on expensive private vendors. “Water is not reliable. When it comes, it doesn’t last. Life has become very difficult,” she told Channel 15 News.
Governor Malombe defended his administration before the Senate, citing inherited infrastructure challenges and ongoing reforms, including the installation of new high-lift pumps at Kiambere and the shift to consumption-based tariffs. However, senators appeared unconvinced, directing the county to submit a comprehensive debt-recovery plan and provide proof that all borrowed customer deposits will be refunded by the end of the current quarter.
For many residents, the Senate session has only confirmed what they have lived with for years. With major investments poured into water projects such as Ilimukuyu and Kangu Kangu, questions are now being asked about why access to clean, reliable water continues to deteriorate under the current administration.
As Channel 15 News investigations continue, one reality is becoming impossible to ignore: the Senate appearance may have exposed the crisis—but for Kitui residents living with dry taps, it was only a drop in the bucket.
