Mutitu Water Company ordered to refund Sh200m to community, wind up operations
Central
By
Ndung’u Gachane
| Nov 24, 2025
The High Court in Nyeri has ordered Mutitu Water and Sanitation Company to wind up its operations and remit all funds collected since 2009, estimated at Sh200 million, to the original water community project.
In a landmark ruling on the transfer of water community projects to formal water companies, Justice Kizito Magare described Mutitu Water and Sanitation Company as a fraudulent entity, not a bona fide water service provider.
The firm had filed a suit against officials of the Mutitu Water project, led by chairperson Joseph Kagiri, who had ejected the company officials amid a dispute over control of the water services.
It sought a permanent injunction restraining Kagiri and community members from accessing company premises, managing water distribution, and declaring the water project defunct.
“We order a permanent injunction restraining the defendants, whether by themselves or their agents, servants, or any other persons claiming through them, from issuing notices or occupying the plaintiff’s premises,” court documents read.
READ MORE
MPs pledge site visist as KTDA gives progress on hydro power project
Why Gen Zs are not sending money to parents
The true impact of Iran-US war on the Kenyan economy
KPA steps up plans for expansion of Kisumu Port
Infrastructure, trust key to cities success as Nairobi, Rome stagnate
HF Group posts 40pc jump in full-year net profit to Sh1.4 billion
How personalised developments are reshaping local property market
Government tightens oversight on Saccos to safeguard members' deposits
The company also sought cancellation of the registration certificate of the Mutitu Water self-help group. “The suit as filed by Mutitu Water and Sanitation Company Limited is dead on arrival.
The suit is against persons 'holding themselves as officials.’ There is no legal provision for suing persons holding themselves as officials; it is either they are officials or sued in their individual capacities,” the judgment read.
The judge agreed with Kagiri, who argued that the transition of the self-help group into a fully fledged company did not follow the project’s constitution, justifying their takeover of operations.
The project, initiated by the Nyeri Catholic Archdiocese in 1996 and registered as a self-help group, was transformed into a company in 2009 without proper legal processes.
“There were no annual general meetings between 2009 and 2022, and the same self-help group officials also served as company officials,” Kagiri told the court. He alleged that the company obtained an operational licence from the Water Services Regulatory Board (Wasreb) fraudulently.
Justice Magare noted there was no evidence of a legitimate transfer of business from the group to the company and dismissed the agreement presented in court.
He emphasised that a valid contract requires legality, offer, consideration, acceptance, and intent to create a legal relationship, including compliance with tax and creditor notification procedures.
The judge criticised the company’s acting CEO as functionally illiterate, noting she was being used as a front for fraudulent conduct.
The court directed project officials to appoint a liquidator, wind up the company, and initiate a forensic audit of both the company and project accounts. Any member found responsible for losses will be required to make good the funds.