Bungoma and Trans Nzoia governments have received the green light to restructure Nzoia Water Services Company.
Water Services Regulatory Board gave the okay to split NZOWASCO into distinct entities for each county.
The regulatory authority set a deadline of July 1 for the two devolved units to finalise the roadmap for separation.
This process entails the allocation of assets, liabilities and human resources of the company.
Trans Nzoia delegation in the meeting was headed by Water executive Sam Ojwang and chief officer Dorothy Nyukuri.
"The journey of separation, which started two years ago, is now almost becoming a reality. By July 1, the Trans Nzoia Water Services Company (Transwasco) will formally replace Nzowasco," Ojwang said.
Nyukuri said under the new arrangement, Trans Nzoia residents will experience efficient water supply.
She said the deficiencies caused by the bureaucratic challenges of having Nzowasco stationed in Bungoma will end.
"We want to guarantee the residents that they will receive better services in terms of water supply. Governor George Natembeya initiated this process to address concerns of poor service delivery," Nyukuri said.
Founded in 2004, NZOWASCO was entrusted with the responsibility of providing water and sanitation services in urban and rural areas spanning across Bungoma and Trans Nzoia counties.
Despite its mandate, the company has faced governance challenges, resulting in low performance ratings from regulatory bodies like WASREB.
NZOWASCO has financial liabilities surpassing Sh8.5 billion.
The liabilities come from levies, pensions, creditors and defaulted loans.
The uneven distribution of liabilities, with Sh4.85 billion in Bungoma and Sh3.65 billion in Trans Nzoia, adds complexity to the financial outlook.
The company's water service provision is currently at its lowest performance level, marked by inconsistent operations and delays in connecting new consumers. Maintenance problems, such as shortage of materials and unattended bursts and leakages that worsen the situation.
Frequent electricity disconnections and logistical challenges also hamper service delivery.
