Nairobi Water confirms chief executive

Mr Phillip Gichuki has been appointed as the Nairobi Water and Sewerage Company managing director finally bringing calm to the troubled firm.

His appointment for a renewable term of three years ends a tumultuous period that among other events brought about the ouster of the board’s chairman Peter Kuguru that took the focus off investments urgently needed at the utility provider.

However, Mr Gichuki said that they were still going on with their projects despite the boardroom disputes.

But he warned that if the wrangles were to continue going forward, they would have a negative impact on the operations of the company.

“We are improving the water supply to areas such as Kahawa West and Dagoretti Corner and such projects have remained on course,” he said.

Data from company indicates that demand for water in Nairobi stands at about 650,000 cubic metres a day against a supply capacity of 431,000 cubic metres.

This deficit can only be reduced through improvement of infrastructure, which has not kept up with the pace of growing demand over the years.

Moreover, the company is heavily burdened by a mountain of unpaid bills in excess of Sh3 billion, which have left it hard pressed and unattractive to private investors.

The problem is, however, not unique to firm as Water Ministry data shows that in 2010, the amount of revenue lost through illegal connections, poor billing systems and leakages declined by two percentage point to 43 per cent.

This is against a sector benchmark of 25 per cent.

Water Services Regulatory Board said the appointment would ensure that the board members focus on improving service provision.

“Governance problems have a tendency of refocusing people away from their core duties, which in this case is ensuring that water supply is not disrupted and how to improve the existing infrastructure,” said Robert Gakubia, the board’s chief executive.

Mr Gichuki’s appointment will come as a relief to 2,000 employees who held a day-long strike last month protesting the appointment of Mr Patrick Omuntia — former finance director — to the position. Deloitte East Africa had also shortlisted Mr David Onyango for the position.

“Majority of the workers are relieved on his appointment since they view him as the right man for the job,” said Mr Festus Ngari, the union secretary.

In June last year, the water company started installing automated water meters in several city estates as they took to technology to assist them boost collection of bills.