98% SHARES

Two water firms reject directive to transfer ownership to Murang’a government

Shareholders of Murang’a West and Gatamathi say the county government lacks capacity to effectively manage them

In Summary

• Each of the five companies in the county is required to transfer 98 per cent of its shares to the Murang’a government by June 30 this year.

• Converting the firms to public companies limited by shares, the firms will fully be owned by the devolved administration.

A tap
A tap
Image: KNA

Delegates of two water firms in Murang’a have rejected the directive to transfer majority of their shares to the county administration.

The shareholders of Murang’a West and Gatamathi water companies who met on diverse dates last week resolved to resist the directive requiring them to be placed under control of the county government.

The delegates of the two companies argued that the county government lacked capacity to effectively manage them, citing failures by the Irungu Kangáta-led administration in handling other devolved functions.

On May 3, Water Services Regulatory Board (Wasreb) wrote to Murang’a water firms directing them to convert them from being private companies limited by guarantee to public companies limited by shares.

Each of the five companies in the county is required to transfer 98 per cent of its shares to the Murang’a government by June 30 this year.

Converting the firms to public companies limited by shares, the firms will fully be owned by the devolved administration.

Delegates of Gatamathi water company, who met in Kiriaini shopping centre, said the county government has done little to support the water sector and cannot be entrusted to manage the firms.

Jane Kuria, a delegate from the firm observed that the devolved unit cannot go for more responsibilities, citing the health sector which is fully under its management yet it was performing dismally. The company supplies water in parts of Mathioya subcounty.

“Let water companies be fully managed by the board of directors of the firms. Leaving the companies to be managed by the county government will be a big mistake,” she said.

Elsewhere, stakeholders of Murang’a West water company, which supplies water in parts of Kangema subcounty resisted the directive, saying they have contributed immensely to the growth of the firm.

The delegates who met in Kangema town in a public engagement forum asked Wasreb to consider withdrawing the directive and let the firms operate like private companies.

One of the stakeholders, Ruguru Irungu, said it was unfortunate that the county government was interested in controlling the sector when it has displayed its inability in the performance of all other devolved functions. 

“The residents served by the water company feel comfortable represented in the firm, unlike being controlled by the county government,” he said.

During the public engagement forums, county government water and finance officials watched in silence as their administration was accused of inefficiency. 

Currently, only Gatanga Water Company is an entity of the county government after it fully transferred its shares to the devolved administration.

Murang’a Water and Sanitation Company (Muwasco) and Murang’a South Water and Sanitation Company (Muswasco) are yet to hold stakeholders’ public forums for engagement and decide on the matter.

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