Most county water utilities face collapse over inefficiencies, debt

Most of the struggling water firms have negative working capita leaving them unable to meet obligations as they fall due.

Photo credit: Jared Nyataya | Nation Media Group

Seventy-five water utilities in the country are in financial distress due to governance gaps, fiscal indiscipline and operational inefficiencies that threaten their long-term sustainability and the reliability of water access for Kenyans.

An analysis of audit reports covering the 87 water companies owned by county governments reveals that many are heavily indebted and grappling with liquidity challenges after failing to collect billions of shillings from their customers.

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Note: The results are not exact but very close to the actual.