Water Resources Authority on the spot over Ksh0.58 billion unremitted pension
The Auditor-General has put the Water Resources Authority (WRA) on the spot for failing to remit pension amounting to Ksh580 million deducted from employees to pension schemes. In her audit report for the financial year 2024/25, Auditor-General Nancy Gathungu says that the company failed to follow a remedial action plan agreed upon with the Retirement Benefits Authority (RBA).
“Review of payroll records and payable ledgers revealed that pension deductions amounting to Ksh579,992,325m relating to previous financial years, were not remitted to the respective retirement benefits schemes by the Authority,” said Gathungu.
WRA had agreed to clear the arrears through monthly payments of Ksh8.5 million over a six-year period beginning July 2024 but failed to do so, said Gathungu. She added that while the company was required to remit Ksh101.4 million to the Water Pension Scheme comprising both employee and employer contributions, only Ksh11.3 million was paid for the months of July 2024 and April 2025.
“This resulted in an unremitted balance of Ksh90,108,426, despite the pension deductions having been made from employees’ salaries throughout the year, indicating non-compliance with pension remittance obligations,” said the Auditor-General.
According to the Auditor-General, WRA has 612 employees, which is 52% of the 1,173 members of staff that it needs to effectively deliver its mandate. “In the circumstances, the effectiveness of management to achieve its mandate could not be confirmed.”
WRA was established under Section 11 of Kenya’s Water Act, 2016 with a primary mandate of regulating the management and use of water resources in Kenya. A central part of WRA’s mandate is to regulate water abstraction and use.
The Authority receives and processes applications for water permits, including permits for water abstraction, water use and groundwater recharge. It determines, issues, varies and enforces the conditions attached to these permits. It also collects water-use charges and permit fees and has the authority to monitor whether water users comply with the conditions of their permits and the requirements of the Water Act.
