Nairobi City Water Entangled in Ksh.2.1 Billion Loan Controversy

By Catherine Muema On Jul 9, 2024

Nairobi Water — County Secretary (left) Patrick Analo With the CEC for Finance Charles Kerich during the assembly committee sitting on Monday at the chambers.

By Shadrack Nyakoe

The Nairobi members of County Assembly have raised concerns over Kenya shilling 2.1 billion loan requested by the Nairobi City Water and Sewerage Company (NCWSC) to settle the workers’ pension crisis.

The MCAs led by Kilimani ward representative have accused Governor Johnson Sakaja’s administration of violating Public Finance Management (PFM) laws.

Sakaja’s officers have been sent away by the committee severally for for various reasons including: some of the parties involved being absent from the meeting, late submission of required documents and and not presenting crucial documents to the oversight body.

The Nairobi City Water and Sewerage Company is seeking Assembly approval for the loan, which has been negotiated with Laptrust Fund.

“There will be no rubber-stamping this time. They must explain why they want to borrow without following the laws. The PFM Act Section 142 is very clear that you can only borrow 5% of your recent collection, which translates to Ksh600 million shillings,” stated session chair Moses Ogeto.

County Finance CEC Charles Kerich is under scrutiny for approving the loan without adhering to Section 142 of the PFM Act.

“The buck stops with him. We don’t understand why Kerich allowed this to pass without following the laid-down laws. We shall not be used as puppets; our job is oversight,” Ogeto added.

Nairobi Water is seeking the 2.1 billion shilling loan to settle workers’ pensions amid the company’s ongoing debt issues.