NAIROBI, Kenya, Jul 22 – Nairobi City Water is staring at a deepening financial crisis over a staggering uncollected debt totaling Sh7.3 billion in unpaid bills.The Auditor General flagged the debt, most of it overdue for more than 480 days, raising concerns about the utility’s long-term solvency and debt recovery strategy.According to the latest audit presented before the Senate Public Investment Committee for the financial year ending June 2024, the company recorded trade and other receivables of Sh3.57 billion against gross receivables of Sh10.93 billion, of which Sh8.58 billion had been outstanding for over 120 days.The Nairobi City Water and Sewerage Company Managing Director Eng Nahashon Muguna attributed the ballooning debt to a mismatch between service provision and payment responsibility, particularly from large government entities.“Among the biggest debtors is Kiambu County, which owes us Sh550 million, the military (Sh109 million), and prison services, which are also in arrears. Public schools, too, have been unable to pay due to budgetary constraints,” Muguna told the committee on Tuesday.He called for parliamentary intervention to ensure adequate capitation for schools to settle utility bills.Nairobi Governor Johnson Sakaja admitted to the company’s cash flow challenges but dismissed claims of insolvency, noting that most of its assets remain under the Nairobi County Government.“On paper, yes, we may look like we’re in trouble. But in reality, the company continues to meet its obligations and provide service. This is a utility tasked with expanding access, not making a profit,” Sakaja said.Senators warned that the ballooning debts threaten the company’s viability.Committee Chairperson Godfrey Osotsi urged the utility to expedite debt collection, while Migori Senator Eddy Oketch accused the national government of “defunding counties” by failing to settle its bills.“If the Ministry of Defence can’t pay for water despite its massive budget, what message are we sending?” Oketch asked.The Auditor General’s office stressed that while social obligations may justify some non-payments, they do not resolve the liquidity gap, urging urgent reforms to improve the company’s working capital position.