Nairobi Transforms Water Billing with Digital Revolution

Nairobi's water services are set to become digital in an effort to enhance efficiency and reduce corruption. Currently, the Nairobi City...

Nairobi's water services are set to become digital in an effort to enhance efficiency and reduce corruption.

Currently, the Nairobi City Water and Sewerage Company has completely transitioned its customer registration, invoicing, and application procedures to digital platforms, representing a significant transformation in its operations.

With the updated system, new connections must be requested solely through an online platform, and invoices are sent via email and text message.

As stated by Martin Nang’ole, the acting managing director of NCWSC, this initiative reduces administrative tasks, decreases waiting lines, and accelerates processing times.

He mentioned that the transition contributes to increased efficiency, lower losses, and improved convenience for customers.

The initiative to digitize operations occurs alongside Nairobi's ongoing issue with non-revenue water (NRW), which describes water that is generated but not charged for because of leaks, theft, or inaccurate metering.

The Nairobi Water and Sanitation Providers Association (Wasreb) calculates that the city suffers losses of approximately Sh11.2 billion each year because of non-revenue water.

The audit data highlights the critical nature of the issue.

A report from Auditor General Nancy Gathungu revealed that in the latest year, NCWSC generated 185.8 million cubic meters of water but only charged for 90.4 million cubic meters, resulting in over half—approximately 51 percent—unbilled.

The review stated, "Even restructuring these assets will not improve the liquidity situation. The company needs to take action on existing liabilities and assets."

Although revenues increased from Sh8 billion to almost Sh12 billion, the Auditor General cautioned that weak debt collection and inefficiencies have resulted in the utility having a negative working capital balance.

Nang’ole stated that NCWSC is seeking a tariff that reflects costs via Wasreb, noting that the existing system does not align with the expenses of service provision.

Governor Johnson Sakaja, during comments addressed to senators, highlighted structural problems including obsolete tariffs and unrecorded water resources.

He mentioned that the company operates significant dams and systems that were never officially recorded in its records as mandated by the Water Act.

Sakaja mentioned that the county is focusing on establishing a revenue monitoring unit, enhancing meter readings, and forming a credit control team to verify debts, particularly those that have remained unpaid for over 480 days.

The report submitted to the Senate Public Investment Committee included Sakaja's disclosure that 51 percent of Nairobi's water is considered non-revenue water, either lost due to leaks or used without being billed.

This came after the Auditor General's report in July, highlighting that the county water company's financial difficulties are worsened by inefficiencies, old pricing structures, and unaccounted infrastructure. The NRW loss is much higher than the 25 per cent threshold established by Wasreb.

The audit estimated the financial worth of uncharged water to be approximately Sh10.95 billion during that time.

A comprehensive review of 76 water utilities showed total NRW losses amounting to Sh15.9 billion for the period ending June 2023.

Nairobi Water was recognized as among the most affected, with unauthorized connections, outdated metering equipment, leaks, and fixed-rate charging listed as key causes.

In addition to digitizing invoices and applications, NCWSC has implemented automated meter reading systems and a GIS-powered asset management platform.

These instruments are designed to assist the utility in identifying leaks, ruptures, and other infrastructure problems as they occur, enhancing its capacity to react swiftly.

NCWSC is of the opinion that the digital transformation will also simplify the process for developers and investors to secure water connections, as online applications eliminate manual obstacles and cut down delays for real-estate projects and business investors.

Nang’ole mentioned that the system enables quicker approvals and more consistent results, which is especially beneficial for construction and development permits.

The digital initiative aligns with a state-supported funding of Sh1.6 billion for Nairobi's water systems, designed to enhance the dependability of supply for over 200,000 households and companies, particularly in the Central Business District and nearby regions.

The NCWSC states that integrating digital billing, automated metering, and infrastructure improvements will enhance financial outcomes and reinforce transparency and responsibility.

Instant analysis

The service reaches over 4.5 million residents in Nairobi, and this transition represents a major advancement in updating processes and minimizing losses as the city progresses toward a more tech-focused water management approach.

Provided by SyndiGate Media Inc. (Syndigate.info).