Senate Committee Grills Bomet Governor Over Water Company’s Financial Crisis

 The Senate County Public Investment and Special Funds Committee has sharply criticized Bomet Governor Hillary Barchok over the near-collapse of Bomet Water and Sanitation Company (BOMWASCO). A recent audit revealed that the company is technically insolvent, with massive financial instability threatening its ability to operate.

The Sub-Committee Chair, Senator Peris Tobiko, did not hold back in her condemnation. "Governor, this company has a negative working capital of Kshs 24.2 million, unpaid salaries since December 2023, and you have been using customer deposits to pay bills. This is criminal negligence," Tobiko said, waving the damning Auditor General’s report before the committee.

BOMWASCO's Financial Troubles

The audit exposed several alarming financial issues at BOMWASCO. The company is struggling with a non-revenue water rate of 63%, far exceeding the regulatory limit of 25%, which has led to an annual loss of Kshs 61.4 million. Additionally, BOMWASCO has endured 141 days without power after failing to settle its electricity bills with Kenya Power, leaving Bomet town and surrounding areas in darkness for nearly five months.

Senator Hillary Sigei, representing Bomet County, expressed deep concern for his constituents. "My people have been without water for months. Staff have gone unpaid for years, and statutory deductions of Kshs 200.5 million remain unremitted since October 2018. What kind of management is this?" Sigei demanded, shaking his head in disbelief.

Human Cost of Mismanagement

Senator Hamida Kibwana highlighted the severe human cost of BOMWASCO's financial mismanagement. "Employees cannot access NSSF benefits or take loans because their LAPTRUST contributions have been deducted but never remitted. You’ve destroyed livelihoods while the wage bill eats up 52% of operational costs, far above the 40% regulatory limit," Kibwana said, her tone laden with frustration.

BOMWASCO’s financial woes were further compounded by its inability to properly account for Kshs 86.8 million in county grants, including Kshs 41 million allocated for staff restructuring and Kshs 37.5 million for overdue electricity bills. Senator Beth Syengo raised concerns over the lack of transparency. "Where is the value for money? You received all these funds, yet there is no accountability," Syengo pointed out.

Accumulating Debts and Unmetered Connections

The audit revealed that BOMWASCO's customers owe the company Kshs 257.6 million, with some debts stretching back to 2015. Shockingly, half of the company’s 12,360 connections remain unmetered, further exacerbating the financial strain. The company also has trade payables amounting to Kshs 273.8 million, which have remained unpaid for over a year, breaching public finance regulations.

Governor Barchok’s Defense

In response to the criticism, Governor Barchok attempted to defend his administration's handling of BOMWASCO's challenges. "We inherited aging infrastructure and legacy debts from the defunct Chemosit Water Company. We are negotiating payment plans with Kenya Power and have engaged development partners for capital injection," Barchok explained, acknowledging that the company’s operations are currently dependent on county support.

However, the Governor's defense did little to ease the growing concerns among the Senate Committee members.

Senate’s Final Warning

Senator Tobiko concluded the heated exchange with a stark warning. "This company has made losses for three consecutive years. Without urgent intervention, BOMWASCO will shut down completely. Kenyans deserve better, Governor," she stated, emphasizing the dire need for immediate corrective action.

The Senate Committee’s session has left the future of BOMWASCO hanging in the balance, with calls for accountability, proper financial management, and urgent intervention to prevent the collapse of the water company that serves thousands of residents in Bomet County. The public and officials alike await the next steps in this unfolding crisis.