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Water Companies in Kenya Seek Ksh 10 Billion Bailout from Government

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 28 June 2020.

Kenya's water companies are struggling to stay afloat amidst the COVID-19 pandemic, with revenue collection plummeting from 94 to 30 percent since March.

According to the Water Service Providers Association (WASPA), the companies are seeking a bailout of approximately Ksh 10 billion from the government to help sustain their operations.

Speaking to KNA, WASPA CEO Antony Ambugo explained that the closure of businesses such as hotels, restaurants, and learning institutions had a significant impact on the companies' revenue.

“Learning institutions, bars, restaurants among other businesses affected by Covid-19 pandemic were a major source of revenue to water companies,” noted Ambugo.

Ambugo highlighted that the companies are facing significant challenges in paying their employees and acquiring chemicals for treating water, with a Ksh 1.119 billion deficit in revenue collection.

Before the outbreak of COVID-19, water firms used to collect close to Ksh 1.6 billion per month from customers, compared to the current Sh479 million collected.

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