The National Water and Sewerage Corporation (NWSC) is struggling under a Shs72.5 billion debt owed by government Ministries, Departments, and Agencies (MDAs), severely affecting its ability to maintain infrastructure and expand services.
This debt represents 20% of NWSC’s total receivables of Shs355 billion, with some bills remaining unpaid for over two years.
An Auditor General’s report highlights the strain on NWSC, warning that delayed payments are undermining service delivery.
Despite a commitment from the Permanent Secretary to the Treasury to clear Shs43.1 billion in phased payments, the funds have not materialized, leaving NWSC in a precarious position.
The report urges the government to urgently address the arrears, warning of worsening water supply issues if NWSC remains financially constrained.
The corporation relies on consistent funding to maintain infrastructure, expand access to clean water, and sustain operations. Without a resolution, public health and economic growth could be atrisk.
