In a letter to the Eng Gichuki dated August 17, the board directed Mr Gichuki to proceed on a terminal leave with immediate effect.
It has appointed Eng Nahashon Muguna Nairobi Water Technical director to take over in an acting capacity.
The utility firm's workers have gone on strike over the move.
Nairobi's water distribution firm has decided not to renew the contract of managing director Philip Gichuki as workers boycott work over the directive.
The Nairobi Water Sewerage Company board of directors has appointed Eng Nahashon Muguna Nairobi Water to take over in an acting capacity.
The utility firm's workers in July protested its privatisation and the non-renewal of contracts for three directors, saying the shakeup is politically motivated.
In a letter to Eng Gichuki dated August 17, the board directed the MD to proceed on a terminal leave with immediate effect.
“I am in receipt of your letter dated June 12th June 2017 requesting for your extension of your contract of employment for period of two years. I wish to inform you that the board after deliberation declined to grant your request as you have already served the full tenure permitted in law,” read a letter signed by board chair Raphael Nzomo.
Resume strike
Speaking to Nation, Nairobi County workers union representative branch secretary, Matilda Kimetto, said that they have resumed picketing since the contracts of the MD and two directors were done maliciously.
Ms Kimetto claims the board is taking advantage of the transition period to advance personal interests.
“This board has gone ahead to take advantage of the transition period to bring to knees this company as they are bitter with Dr Kidero's sacking,” said Ms Kimetto.
Incoming Deputy Governor Polycarp Igathe cancelled a scheduled meeting with striking staff today citing a planned disruption by 'goons'.
Mr Igathe issued a statement welcoming the board's move not to renew Eng Gichuki's contract.
“Nairobians will see lawful and swift management in action in respect of non-performance in service delivery in key sectors such as water supply and sewer services,” said Mr Igathe.
