Water sector needs reforms

Water companies have issued notice to consumers living in major urban areas to prepare for higher tariffs.

The firms operating around Nakuru, Kisumu, Eldoret and Mombasa have already gazetted their revised charges and the rest are expected to follow suit shortly.

The main reason given for the move, already approved by the Water Services Regulatory Board, is that the old tariffs last reviewed in 1999 are insufficient to cover water operation costs.

The companies have also indicated that they want to improve revenue collection to convince external financiers that water provision is a viable undertaking worth considering for long-term loans.

These companies have salaries and other operation costs which users must help to defray since the government has reduced its role to a regulatory one only.

The firms are also beset by ageing infrastructure installed shortly after independence.

Lack of investment in maintenance has been blamed for the current 50 per cent loss of water along transition lines, an unfortunate situation that has considerably stretched the gap between supply and demand.

We agree with the providers that fixing infrastructure is a long term investment that can only be achieved by use of externally borrowed funds.

We also concur that prudent external financiers can only put their money on ventures deemed to be self sustaining.

In short, it is important that the new tariff structure not only needs to be fair to consumers but should also cover operating, capital , administrative, regulatory and any other justifiable costs incurred by water companies.

Unfortunately this is where our doubt stems from.

Walking the talk has certainly not been the speciality of any of the 170 water firms in the country.

Their formation, a few years ago, rekindled false hopes of good corporate management — but old habits die hard.

Like many other utility firms still trapped in a monopolistic mindset, water companies across the country are wallowing in inefficiency, corruption and apathy towards the consumer.

Unless these challenges are addressed, the water services firms will continue to perform below expectation — tariff increase notwithstanding.