While Nairobians wake up at 4 am to chase water vendors, billions of shillings worth of the precious commodity are vanishing into the ground—or into the pockets of cartels. A damning new report by the Parliamentary Budget Office (PBO) has revealed that Kenya’s water companies are bleeding dry, losing a staggering KSh 11.6 billion annually to leakages and theft.

The report paints a picture of a sector in technical insolvency. Out of 87 public water service providers, 70 are technically broke, surviving on debt and government bailouts. The culprit is "Non-Revenue Water" (NRW)—water that is treated and pumped but never billed. The national average for NRW has hit 46%, nearly double the acceptable global standard of 25%. In simple terms, for every two jerricans of water produced, one is stolen or lost.

The Anatomy of the Theft

This is not just about rusty pipes bursting. The Auditor-General’s report points to a sophisticated network of illegal connections. "We have estates in Nairobi where high-rise apartments have water 24/7, yet their meter readings are zero," says a source at the Nairobi City Water and Sewerage Company, which recorded the highest loss at KSh 8.57 billion.

These "spaghetti connections" bypass the meters, often installed by the water company's own staff in collusion with landlords. In the informal settlements, cartels divert main pipes to sell water at exorbitant prices to the poor. It is a booming black market funded by the taxpayer.

• The Debt Burden: The water firms are drowning in debt, owing over KSh 25 billion. They cannot pay electricity bills to Kenya Power, leading to pump shutdowns that further worsen the shortage. It is a vicious cycle of inefficiency.
• The Consumer Cost: To cover these losses, water tariffs are rising. The cost of inefficiency is passed down to the consumer, who pays more for a service that is erratic at best.
• The Governance Failure: The report cites "governance lapses and fiscal indiscipline" as the root causes. Boards are packed with political appointees who lack the technical will to crack down on the cartels.

A Sector on Life Support

The situation is critical in counties like Mombasa, Kisumu, and Kiambu. In Kisumu, despite the presence of Lake Victoria, residents face dry taps while the water company grapples with a 40% loss rate. The Senate Committee on County Public Investments has warned governors that they must clean up the mess or face budget cuts.

Water is life, but in Kenya, it is also a crime scene. Until the leakages are plugged—both in the pipes and in the boardrooms—the average Kenyan will continue to pay the price for a resource that should be a basic right, not a luxury.