The Northern Region Water Board (NRWB) has experienced slow revenue growth in the 2017/18 fiscal year despite collecting K7.4 billion during the same period, 13 percent more than K6.5 billion collected in the previous year.
Figures from NRWB show that revenue growth for the company slowed down due to intermittent power supply, which forced the board to pump low volumes of water. The board also reportedly loses 33 percent of its revenue to non-revenue water; this is the water that is lost mostly due to leakages, malfunctioning metres and aged pipes.
“The financial performance of NRWB has been improving over the years amidst challenges. Growth in revenues slowed down in the year [2017/18] due to low volumes because of intermittent power challenges. NRWB registered a net profit of K424 million in 2018 which was 89 percent above last year’s performance,” said the board’s chief executive officer Titus Mtegha.
He added: “Despite registering considerable profit in 2018, NRWB is experiencing serious cash flow challenges due to excessive escalation of water debtors. As at June 2018, the total debt position was K3.7 billion, representing 55 percent of the total sales in the year,” he said.
Meanwhile, Minister of Agriculture, Irrigation and Water Development Joseph Mwanamvekha on Tuesday urged the board during a meeting at the board’s Kawiruwiru House to improve its operations so that its revenue base grows significantly. n