CPISFC reviews financial management in Kwale County amid audit concerns

CPISFC reviews financial management in Kwale County amid audit concerns

𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬
𝐅𝐫𝐢𝐝𝐚𝐲, 𝟐𝟏𝐬𝐭 𝐌𝐚𝐫𝐜𝐡 𝟐𝟎𝟐𝟓

The Senate Committee on County Public Investments and Special Funds, chaired by Senator Osotsi, convened with Kwale County Governor Fatuma Achani and her administration to scrutinize financial irregularities identified in the 2023/24 audit reports. The committee focused on the Kwale Water and Sewerage Company (KWAWASCO) and the municipalities of Kwale, Diani, Kinango and Lunga Lunga, citing concerns regarding financial reporting, project delays and budgetary inconsistencies.

A primary point of contention was KWAWASCO’s substantial accounts receivable, totaling Kshs. 275,867,905, which have remained outstanding for over 120 days. Senator Osotsi emphasized the inadequacy of current debt recovery strategies, stating, “The current strategies have failed to yield significant results. With debts piling up, the company risks financial collapse unless a sound debt recovery management policy is implemented urgently.” 

Governor Achani acknowledged the challenges, noting, “We’ve made efforts, including contracting a law firm for debt collection, but it proved costly with little success. We’ve since collected Kshs. 946,266 of old debts in 2023/24 and are issuing demand letters and offering payment plans to recover more.” Senator Raphael Chimera then inquired, “What concrete steps are you taking to ensure these debts don’t continue to balloon, and how will you address the gaps in your recovery process?”

The committee also raised concerns regarding KWAWASCO’s non-revenue water (NRW), which stands at 49%, significantly exceeding the Water Services Regulatory Board (WASREB) benchmark of 25%. Despite a reduction from 66% in 2019/20, the current NRW rate results in a Kshs. 149 million loss. Senator Osotsi asserted, “While progress has been made, 49% NRW is unsustainable. The company must accelerate efforts to meet WASREB standards.” 

Governor Achani detailed ongoing mitigation efforts, “We’re replacing old pipelines with HDPE pipes and addressing leaks and illegal connections, with projects like the Ukunda Water Supply Improvement set to reduce NRW further by October 2025.” Senator Chimera further pressed, “What timelines have you set for these interventions and how will you tackle persistent issues like vandalism and meter tampering?”

The committee concluded by urging the Kwale County administration to implement stricter oversight and expedite remedial actions to safeguard the county’s financial resources.