WaSWU backs extension of Nairobi Water MD’s term

By Eunice WAWUDA

The Water Services Workers Union (WaSWU) has backed the decision of the Nairobi City Water and Sewerage Company board to extend the term of its current Managing Director Eng. Nahashon Muguna, saying the decision was above board.

Addressing a press briefing in Nairobi Monday November 18, 2024 WaSWU interim Secretary General Matilda Jebet said the decision was also in the best interest of the public.

This comes just days after an opposing faction, the Kenya Union of Water and Sewerage Employees (Kuwase) Nairobi branch last week faulted the decision saying the board’s move had contravened the law.

The lobby argued that Eng Muguna was ineligible to extend his contract having attained the retirement age of 60. He is 58 years old.

“We applaud the extension of the contract of service for Eng. Nahashon Muguna and we equally extend our appreciation to the Board of NCWSC for acting to the best interest of the Public by ensuring smooth transition void of politics and that ensures continued business of the Company in serving mwananchi,” said Ms. Chebet.

Further arguing that, Muguna’s contract extension meets the requirements of Corporate Governance Mwongozo Tenets on considerations of CEOs Contracts. It is a decision that has also been commended by the Union’s National Treasurer Patrick Kasimu.

“Public Service has a mandate to manage placement and appointments and it allows special skills to be retained which are needed for the interest of the public organization,” WaSWU’s Kasimu.

Indeed, a Public Service Commission (PSC) – a state employment agency for public servants, in its circular number No. PSC/ADM/13 of 19th December, 2020 backs WaSWU’s concerns on the extension of service upon attainment of the mandatory retirement age of such positions.

“The appointment beyond retirement age should always be in the best interests of the service. The contractual terms assigned to any appointment beyond retirement age shall be in accordance with the provisions of Section 45 of the Public Service Commission Act, 2017, Section 10 of the Employment Act, 2007 and the specific contract of employment which normally contains a separation clause,” reads the circular by the commission’s Chairperson A.M Muchiri and copied to Felix Koskei the head of Public Service and Amos Gathecha, PS in the state department of public service.

Where an Authorized Officer finds it necessary to discontinue a lawful employment contract, the circular further states that the provisions of the contract may be invoked taking into account the legitimate expectations of the public officer without recourse to outright revocation of the appointment.

“It is therefore imperative that where termination of a contract is contemplated, it be done within the confines of the relevant laws and provisions of the contract,” it states further.

The union led by Ms. Chebet further criticized the opposing union of a conspiracy with unspecified members of the Nairobi County Assembly for their inability to sanction a critical loan request, whose absence she said, risks sending the union’s retiring members to poverty, with as many moving to retirement with less benefits.

“Every single water services worker should be able to retire with security,” said Jebet.

Noting that a pending proposal to allow the union’s parent company, the Nairobi City Water and Sewerage Company (NCWSC) to borrow up to Sh2.3 billion loan facility from the local banks meant to pay its retiring members, were being disenchanted by certain members of the County Assembly (MCAs) where the submission currently sits.

“The biggest concern currently of workers in NCWSC is Pension Debt Outstanding to Laptrust pension scheme amounting to Kes 2.3billion.

The NCWSC approved a loan facility but Some group of MCAs and in conjunction with KUWASE Union politicised the plan yet the company is willing and able to service the loan,” offered Matilda.

Long -standing tiff

This comes in the wake of long-standing challenges being faced by Nairobi City Water & Sewerage Company (NCWSC) in servicing the LAPTRUST debt which arose when the company’s retirement benefits scheme was briefly transferred from LAPTRUST to Nairobi Water Provident Scheme administered by Madison Insurance Company between September 2005 and September 2010.

As at June 2022, the LAPTRUST debt stood at KShs 2.17 billion.

WaSWU leadership argued that it was against this background that NCWSC was seeking approval to obtain a bank to clear the debt, which it says would curtail the escalation of the debt and relieve the Company of the punitive daily repayment obligation as well as improve its cash flow and operations in the long run.

“Reference is made to request by Nairobi City Water & Sewerage Company (NCWSC) to borrow money towards settlement of outstanding pension arrears with the Local Authorities Pension Trust (LAPTRUST).

Considering that the County Government means both the County Executive and the County Assembly and also considering that the County Executive has given a nod for the borrowing.

Now therefore, this letter herby forwards the request by NCWSC for consideration by the Nairobi City Council Assembly,” reads in part a letter Patrick Analo, the Nairobi County Secretary who is also the head of County Public Service, addressed to the County’s clerk at the City Hall, Nairobi dated April, 16. 2024.

The Laptrust DB Scheme closed its doors to new members in 2012 and in a new Defined Contribution Scheme, Laptrust (Umbrella) Retirement Fund, was registered to meet the retirement needs of new employees within the then Local Authorities of Kenya.