Athi Water Works Development Agency is facing scrutiny from lawmakers over its finances, stalled projects and environmental risks.
The agency told the National Assembly Committee on Blue Economy, Water and Irrigation that it collects about Sh 186 million monthly, but a large portion goes toward repayments to the National Treasury and VAT obligations. MPs also raised concern over Nairobi Dam safety and sewerage leakage into the Nairobi River.
The Committee on Blue Economy, Water and Irrigation, chaired by Kangogo Bowen, held a session on Tuesday with officials from Athi Water Works Development Agency to review the status of water and sanitation programmes under the 2025/26 financial year.
During the meeting, AWWDA Chief Executive Officer Eng. Joseph Kamau briefed members on the agency’s revenue performance, noting that monthly collections average Sh 186 million, with projections of up to Sh 2.2 billion annually.
He further indicated that actual collections for the current financial year stand at about Sh 1 billion, explaining that a significant share is remitted to the National Treasury to service loans.
The agency also told lawmakers that around 20 per cent of its revenue is used to meet VAT-related loan repayments, even as it continues to cover operational costs and deliver water and sanitation services.
Eng. Kamau appealed to the committee to support efforts aimed at addressing outstanding VAT obligations. These include over Sh 438 million tied to African Development Bank-funded projects, Sh 257 million linked to French Development Agency-funded works, and Sh 580 million associated with other ongoing programmes. Members advised the agency to engage the National Treasury to resolve financing constraints linked to government-to-government arrangements.
Lawmakers further raised safety concerns over Nairobi Dam, warning of possible risks if the dam’s banks were to fail. In response, the agency said it has already carried out assessments, including mapping affected areas and submitting a report to the National Land Commission to guide resettlement and compensation processes.
The committee also questioned delays in key infrastructure projects, pointing to the Maragua IV Dam design phase, which has taken three years. The agency attributed the delay to limited funding, prompting members to stress the need for consistent and adequate financing to support timely completion of projects.
Attention was also drawn to sewerage challenges in Nairobi, particularly in Dandora, where leakage into the Nairobi River has been reported. The agency confirmed that procurement processes are ongoing, supported by Sh 20 million, to address the issue.
The committee is expected to conduct a site inspection within Nairobi next week to assess water and sewerage conditions on the ground and review ongoing efforts aimed at improving service delivery.