More than 70 water companies in Kenya are on the verge of collapsing under the weight of Sh25 billion in debts, mismanagement, and unpaid bills, triggering fears of a national water shortage and public health risks, according to a new report by the Parliamentary Budget Office (PBO).
Massive Losses and Political Interference
With rising debts and operational losses, these water firms are struggling to maintain operations. The PBO’s findings highlight that nearly half of the water pumped is lost due to leaks or theft, severely affecting the financial viability of the service providers. Local county governments, which own the firms, have been accused of mismanaging them by collecting revenues but failing to pay for essential services like electricity and maintenance.
This mismanagement has led to a growing crisis. Kenya Power, the electricity provider, has started disconnecting water pumps in regions such as Machakos and Vihiga, leaving residents without access to clean water. “For every 100 liters of water pumped, 48 liters are lost to leakages or theft,” the PBO report states, noting that such losses are unsustainable for any business. Without intervention, the water sector could face a complete collapse by June 2026.
Health Risks as Water Access Deteriorates
The ongoing crisis has raised alarms about public health. As piped water systems fail, residents are turning to unsafe sources, including boreholes and water trucking services, increasing the likelihood of waterborne diseases like cholera and typhoid, especially in urban slums. The situation is particularly dire in counties where the lack of clean water could lead to outbreaks and further strain the country’s already overwhelmed healthcare system.
To prevent further deterioration, the PBO has urged the National Treasury to take drastic measures, including withholding funds from counties that fail to clear water utility debts. The proposal seeks to force local governments to take accountability for their water service providers, but such a move may be the last hope for saving the sector from imminent collapse.
With no resolution in sight, the future of Kenya’s water service providers remains uncertain, and the risks to public health continue to mount as the government struggles to address both the financial and logistical challenges of the sector.
