Taita Taveta Governor Andrew Mwadime faced tough scrutiny from senators on Tuesday as the Senate County Public Investment and Special Funds Committee probed the near-collapse of Tavevo Water and Sewerage Company Limited, raising alarms over insolvency, misuse of funds, and ethical lapses.
Appearing before the committee at Bunge Tower, the governor was questioned on the financial management of the Voi, Mwatate and Taveta municipalities, as well as the county-owned water utility, for the financial year ending June 30, 2025.
While delayed exchequer disbursements were cited as a key challenge for the municipalities, senators zeroed in on Tavevo’s deteriorating financial position.
The Auditor General’s report warned that the utility faces a “material uncertainty related to going concern,” citing a negative working capital of Sh532.7 million.
Tavevo’s current liabilities of Sh1.08 billion far exceed its current assets, a situation senators said points to technical insolvency.
Committee chair Senator Godfrey Osotsi faulted the company’s financial statements, saying they failed to provide a clear recovery plan.
“You are operating a company that is effectively bankrupt, yet you failed to disclose the measures being taken to mitigate this condition in your financial notes,” Osotsi told the governor.
Taita Taveta Senator Johnes Mwaruma questioned the handling of customer deposits, noting an unexplained Sh32 million shortfall.
“Customer deposits are supposed to be held in trust. Using them to cover operational gaps is unlawful and unacceptable,” Mwaruma said.
Ethical concerns further deepened the scrutiny after Senator Raphael Chimera cited audit findings showing that two firms owned by Tavevo’s company secretary were contracted to offer legal services to the utility without any declared conflict of interest.
“This is a direct violation of the Constitution’s leadership and integrity requirements,” Chimera said.
“How can the public have confidence in a utility where compliance officers benefit from the very contracts they oversee?”
The committee also raised concern over Tavevo’s high non-revenue water levels, reported at 50 per cent, resulting in losses estimated at Sh388 million in foregone revenue.
Responding to the concerns, Governor Mwadime admitted the company was under severe financial strain but outlined steps being taken to stabilise operations.
“We have established a dedicated non-revenue water coordination unit and are engaging professional debt collectors,” he said.
The governor added that the county would strictly enforce conflict-of-interest rules and invest in solarisation of pump houses to cut electricity costs, which he said were a major driver of the utility’s losses.
Senators said they would issue further recommendations after reviewing the governor’s responses and warned that accountability measures would follow if reforms are not implemented.
