A deepening labour dispute at the Nairobi City Water and Sewerage Company (NAWASCO) threatens the stability of the capital's essential services, as rival unions clash over who must settle a pension debt exceeding Sh4 billion. Officials allied with the Kenya Union of Water and Sewerage Employees (KUWASE) on Wednesday, November 26, 2025, asserted that the financial obligation lies with the Nairobi County Government and the National Treasury, accusing a rival union of manufacturing a crisis.

The officials faulted the Water Services Workers Union (WASU) for mobilizing retirees for protests and unfairly targeting NAWASCO's management over the long-standing arrears owed to the Local Authorities Pension Trust (Laptrust) and other schemes. According to reports, the total debt includes Sh2.6 billion to Laptrust, Sh900 million to Lapfund, and Sh500 million to the County Pension Fund.

“Blaming the acting MD—who has only served for two months—for a problem that is more than a decade old is deceitful,” stated Wycliff Onditi, a NAWASCO staff member and branch secretary of the County Government Workers Union, on Wednesday. He noted the debt has been accumulating since 2010.

Attorney-General’s Advisory Shifts Onus

At the core of KUWASE’s argument is a legal advisory from the Attorney-General. According to union officials, a multi-agency committee involving NAWASCO, Laptrust, and the unions had previously explored a plan for the water company to secure a commercial bank loan to clear the debt. However, the Attorney-General reportedly halted this process, advising that NAWASCO, as a wholly-owned entity of the county, lacks the legal standing and asset base to take on such a significant loan. The advisory placed the responsibility squarely on the Nairobi County Government. This contradicts earlier reports from June 2024, which suggested the Attorney General had advised NAWASCO to seek borrowing approval directly from the county, which was subsequently granted.

Following the advisory, negotiations were elevated to a national level. A Senate-driven process was initiated, bringing together Nairobi Governor Johnson Sakaja and the National Treasury to find a solution. The plan aims to incorporate the NAWASCO pension arrears into a broader debt-swap program between the county and the national government, which includes settling dues related to land compensation and unpaid rates. In an April 2025 directive, Nairobi County's Finance Executive, Charles Kerich, reaffirmed this position and requested NAWASCO to provide a detailed breakdown of the amounts owed for inclusion in the settlement.

Inter-Union Rivalry and Worker Welfare

The dispute highlights a sharp rift between the two main unions in the water sector. KUWASE officials have questioned the motives of their WASU counterparts, alleging that some of the leaders currently advocating for street protests previously participated in the committee that acknowledged NAWASCO was not legally liable. “Demonstrations should be directed where the law places the burden—at City Hall and the National Treasury,” said Moses Murungaru, the Nairobi Water branch chair of the County Government Workers Union. He emphasized that while retirees deserve their dues, the process must follow the correct legal channels.

Meanwhile, WASU and retired employees have planned protests from December 2, citing years of neglect that have left many former workers in destitution. They argue that the debt is largely composed of statutory deductions taken from employee salaries but never remitted to the pension schemes. The failure to resolve this long-standing issue not only affects the livelihoods of hundreds of retirees but also raises serious concerns about the financial governance of key public utilities and the security of current employees' future benefits. The broader issue of unremitted pension dues remains a significant challenge across many county governments, with total liabilities estimated to be over Sh80 billion as of early 2024.