Nairobi — A group of officials allied to the Kenya Union of Water and Sewerage Employees (KUWASE) has dismissed fresh demands that Nairobi Water and Sewerage Company (NAWASCO) settle billions of shillings in unpaid pension dues, insisting that the responsibility lies with the Nairobi County Government and the National Treasury.
The officials accused their rival union, the Water Services Workers Union (WASU), of unfairly singling out the utility firm and mobilising retirees to stage protests, despite what they say is clear legal guidance showing NAWASCO is not liable for the arrears.
Wycliff Onditi, a Nairobi Water staff member and branch secretary of the County Government Workers Union, said the debt owed to the Local Authorities Pension Trust (Laptrust) has been growing since 2010, long before the current leadership took charge.
"Blaming the acting MD--who has only served for two months--for a problem that is more than a decade old is deceitful. Even during the eight years under the previous MD, the same union officials making noise today never raised these issues. It is a manufactured crisis," Onditi said.
Keep up with the latest headlines on WhatsApp | LinkedIn
According to KUWASE-aligned officials, a multi-agency committee involving NAWASCO, Laptrust, KUWASE and later the county government had been working on a structured plan to clear the debt, estimated at over Sh4 billion. One of the proposals was to secure a bank loan, and NAWASCO had already begun talks with a local lender.
But the Attorney-General halted the process, advising that the company, being owned by Nairobi County, lacked the legal standing and assets to take on such a loan. The AG reportedly stated that only the County Government has the mandate to shoulder that obligation.
Negotiations were subsequently elevated to a national forum under a Senate-driven process that brought together Treasury Cabinet Secretary John Mbadi and Nairobi Governor Johnson Sakaja. The talks aim to create a consolidated settlement covering land compensation, unpaid rates and other financial obligations between the county and the national government.
Onditi questioned why some union leaders now leading street demonstrations had earlier participated in the same committee that ruled out any liability on NAWASCO's part.
Documents reviewed indicate that Nairobi County Finance Executive Charles Kerich reaffirmed this position in an April 2025 directive. The county stated that it is in discussions with the National Government to harmonise debts owed to it including land-related claims, Contribution in Lieu of Rates (CILOR), and parking revenue and intends to incorporate NAWASCO's pension arrears into the broader debt-offset programme.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Kerich directed NAWASCO to provide a detailed account of all amounts owed to Laptrust for consideration in the settlement.
Moses Murungaru, the Nairobi Water branch chair in the County Government Workers Union, said the continued pressure on the company is misplaced.
"Demonstrations should be directed where the law places the burden--at City Hall and the National Treasury. Nairobi Water does not have the legal authority to pay that debt," he said.
He added that while KUWASE supports efforts to ensure retirees receive their dues, the process must follow the appropriate legal channels.
"We stand with pensioners. But we must be truthful about who carries the liability. Targeting Nairobi Water for political drama helps no one," Murungaru said.
