Leadership Turmoil at Nairobi Water Company: MD’s Tenure Extension Sparks Outcry

The Kenya Union of Water and Sewerage Employees (KUWASE) has threatened industrial action, citing the decision as a breach of the Public Service Act, which mandates retirement at 60. The union also highlighted allegations of mismanagement and embezzlement of funds under Muguna’s leadership

A leadership dispute has engulfed the Nairobi City Water and Sewerage Company (NCWSC) following the controversial extension of Managing Director Eng Nahashon Muguna’s tenure. Despite reaching the mandatory retirement age of 60, the NCWSC board extended Muguna’s contract during a meeting on November 6, 2024, drawing criticism from employees and stakeholders.

The Kenya Union of Water and Sewerage Employees (KUWASE) has threatened industrial action, citing the decision as a breach of the Public Service Act, which mandates retirement at 60. The union also highlighted allegations of mismanagement and embezzlement of funds under Muguna’s leadership.
“We oppose this extension. Qualified individuals are available to steer the company forward,” said KUWASE General Secretary Elijah Awach.

Muguna, who has served as NCWSC’s MD since 2020 after a three-year stint as acting MD, faces allegations of financial irregularities. Reports of mismanagement include unaccounted water losses worth KSh 2.48 billion during the COVID-19 period, discrepancies in gratuity payments, and manipulation of financial IT systems.

The union has formally raised its concerns with key authorities, including Nairobi Governor Johnson Sakaja and the Ethics and Anti-Corruption Commission (EACC). They demand Muguna’s immediate exit and accuse the NCWSC board, chaired by lawyer Arnold Karanja, of overstepping its authority.
Nairobi County Assembly Majority Leader Peter Imwatok has also weighed in, urging Muguna to retire to uphold integrity and accountability. A Senate inquiry last year uncovered systemic corruption at NCWSC, adding fuel to the calls for a leadership change.

Despite appearing before the Nairobi County Assembly Water Committee to defend his position, Muguna’s explanations have done little to quell growing discontent. The committee, led by Chairperson Kennedy Oyugi, is reviewing the matter further.