Message from the Managing Director

Today we yet again gather to mark this auspicious occasion of the second Annual General Meeting since the inception of the Company, it is an occasion to reflect on the Companys performance for the periods ended 30th June 2010 and 30th June 2011. The Company, under Licence of a Service Provision Agreement with Tanathi Water Services Board (a State Corporation), is mandated to provide water and waste water services within Ongata Rongai and Ngong Divisions of Kajiado North District to a coverage area of approximately 733km targeting a population of 298,500 persons. The Company has achieved a service coverage of 85km and 128,355 persons being an achievement of 11.6% and 43% respectively, the low coverage is attributed to a limited reticulation networks which is majorly within the pre-urban areas of Ongata Rongai, Kiserian, Ngong and Bulbul and their immediate environs, for instance Silanga and Kahara areas. The Sublocations served by the existing water supplies networks include; Naserian, Olteyani, Upper Matasia, Ngong Township, Embakasi, Kandisi, Kware, Mosoi Ridge, Lower Matasia, Olkeri, Oloosurutia, Oloolua, Bulbul, Olepolos, Olekasasi and Ongata Rongai. It is my pleasure to take this early opportunity and recognize the contributions made by the Small Scale Service Providers in the form of privately owned boreholes, community based organizations, schools, churches and other institutions within our area of mandate in supplementing in bridging the deficit in the service coverage. As our area of jurisdiction continues to develop, it offers us a chance to work together, pursue emerging opportunities and improve on the present and the past, to this end the water company organized and hosted a one day sensitization forum for the Small Scale Services Providers on the Legal and Operation framework in the water sector which has culminated in the initialization of the registration of the providers and geared towards legal compliance. Water is a key driver of social-economic development, during the years under review, the company has centered on demand focused distribution of water, albeit inadequate, while still ensuring accessibility to all, this has enhanced reliability of the service coupled with improved customer service. In order to achieve our goal of business growth and contribute towards the socialeconomic transformation of the coverage area, we will continue to direct our focus on expanding the supply network, the customer base, increased sales, improved quality of supply and prudent management of our resources. It is anticipated that the completion of the Kiserian Dam with a capacity of 15,000m/day will go a long way in alleviating the current service deficit in Ongata Rongai and Kiserian, in addition to extensionof service to the un-served satellite areas of Kahuho, Rimpa, Kandisi, Roysambu, Kamura, Nkoroi, Oloosurutia and Matasia. Due to current pipe network limitations an initial 5,000m will be injected into the existing reticulation systems in Ongata Rongai and Kiserian, this will gradually be increased to achieve optimum utilization of the dams capacity through construction of a comprehensive reticulation system across the target areas. This will be achieved through engagement of Tanathi Water Services Board in the designing and construction of the requisite infrastructure. The Company will also continue to tap into

OLOOLAISER WATER AND SEWERAGE COMPANY LIMITED ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEARS ENDED 30TH JUNE 2009/2010 AND 30TH JUNE 2010/2011

funding opportunities provided for by the Water Services Trust Fund, Government of Kenya through the District Water Office, LATF through the County Council of Olkejuado and other development partners. We therefore, look to a continued partnership and support from our shareholders, stakeholders, funding agencies, Water Services Regulatory Board, Water Resources Management Authority, Tanathi Water Services Board and the Ministry of Water and Irrigation in an effort to improve accessibility and reliability of water services within our area of service. Finally l wish to thank all the shareholders, stakeholders, Directors, customers, the Government, employee, financiers, contractors and suppliers8