GAZETTE NOTICE NO. 13561

in accordance to the requirements of section 139 of the Water Act, 2016. After considering the application, the written and oral submissions by all stakeholders during the consultation period and based on latest available data, WASREB has determined an upward tariff review for KIWASCO is justified in order to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions attached to the tariff. WASREB gives a one (1) months' notice to all existing and potential customers of KIWASCO that the approved tariffs for the four financial years 2021/22, 2022/23, 2023/24 and 2024/25 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2021/2022 to 2024/2025 Customer Category Approved Domestic Consumption Block in M3 Tariff (KSh./M') 1-6 75 7-20. 110 21-50 115 51-100 130 101-300 145 >300 160 Commercial/Industrial 1-50 115 51-100 130 101-300 145 >300 160 Government 1-50 115 51-100 130 101-300 145 >300 160 Public Schools, Universities and Colleges 1-600 60 601 - 1200. 65 >1200 110 Commercial Bulk Sales/DMMs (per m3) 60 Water Kiosk (per m3) 35 1.2 Sewerage Tariff Structure for the period 2021/2022 to 2024/2025 (a) Consumers with a Water Connection Customer Category Approved Tariff Domestic Consumption Block in m3 (75 % of water consumed) Tariff 1-6 40 7-20. 55 21-50 65 51-100 70 101-300 75 >300 80 Commercial/Industrial/ Government 1-50 60 51-100 70 101-300 75 >300 80 Public Schools, Universities and Colleges 1-600 45 601 - 1200. 60 >1200 70 Water Kiosk (per m3) N/A N/A (b) Consumers without a Water Connection Sewerage consumers without a water connection shall be charged as follows: • Single dwelling Domestic unit: KSh. 350 per month • All other categories: Volume of water consumed as per the metered source at the rates specified in 1.2 (a) above 1.3 Indexation of the Approved Tariff The utility's approved tariffs for water and sewerage shall be eligible for annual indexation, as per the regulations of the Water Services Regulatory Board (WASREB). The inflation adjustment shall come into effect every July of the tariff period commencing July 2023. 1.4 Miscellaneous Charges These shall be as follows: Item/ Service Charge (KSh.) Water Deposit Category of Consumer Domestic Retail shops less than 10m3 Retail shops more than 10m3 3,500 Bar, restaurants less than 15 m3 Bar, restaurants more than 15 m1 6,000 Hotel class "A" and "B" less than 150 m3 12,000 Hotel class "A" and "B" more than 150 m' Hotel class "C" and 'D' less than 150 m3 Hotel class "C" and 'D' more than 150 m3 20,000 Hospitals more than 150 m3 20,000 Health centres less than 150 m3 12,000 Schools and other institutions more than 200 m 20,000 Schools less than 200 m3 10,000 Minor construction sites more than 200 m3 15,000 Major construction sites more than 300 m3 50,000 Light industries less than 200 ti3 30,000 Medium industrial between 200 m3 and300 m3 50,000 Heavy industries more than 300 m3 100,000 Water Kiosks 5,000 Customers with only sewer connection to be charged a deposit equivalent to water connection Other Charges Service New water connection fee - Connection size: 1/2 inch to 1 inch 2,500 New water connection fee - Connection size: 1.5 inches to 3 inches 7,500 New water connection fee - Connection size above 3inches 15,000 Water Reconnection fee - at meter point 1,000 Water Reconnection fee - at mains 5,000 and double deposit Tanker - 8000, 16,000 litres 2,500, 5,000 respectively per tanker within KIWASCO area for all consumers Sale of water per m3 at bowsing point (own tanker) Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request Sewer Connection-Residential/ Domestic 5,000 Sewer Connection- Commercial, Government, schools, universities and colleges 7,500 Sewer Connection- Industrial 15,000 Private sewer unblocking 2,500 Leak detection services 1,000 Sewer Reconnection fee 15,000 Statement of account fees For cutting off the supply at the request of the consumer For turning on the supply otherwise than in respect of a first connection Exhauster Services (Company Exhauster) 5,000 for other customers and 4,000 for informal settlements Private Exhausters (Dumping into the company's sewer system) 15,000 per truck per month Penalties Illegal water connection, -Commercial, Industry, Construction (Fraud) 100,000 plus estimated consumption during the period of the illegality Illegal water connection, (Fraud) - Domestic 30,000 plus estimated consumption during the period of the illegality Overcharging (fraud) at water kiosk 15,000 Illegal sewer connection- Commercial, Industry, Construction 100,000 Illegal sewer connection- Domestic, Government, schools, universities and colleges 30,000 Self-reconnection after cut off for non-payment 5,000 and billing to be backdated from date of cut off Surcharge for tampering with meters (this to include meter removal, reversing of meter etc) 10,000 Surcharge for direct suction of water from the supply line using a pump 10,000 2.0 Analysis of Cost Structure Below is the summary of the projected annual cost structure that makes up the total costs to be incurred by KIWASCO during the tariff period: KSh. KSh. Costs Subject to Annual Indexation O&M (Ksh.) (a) 820,653,929 820,653,929 Fixed Costs 10th December, 2021 KSh. KSh. Costs Subject to Annual Indexation Investment Cost (Av) (b) 52,079,194 Debt (c) 97,446,754 Asset renewal (d) 5,815,763 Sub Total Fixed Costs (e=b+c+d) - 155,341,711 Total Average Annual Costs (a+e) - 975,995,641 Forecasted Annual Average Billing - 1,096,165,386 Forecasted Annual Average Revenue Adi (95% collection Efficiency) 0.95 1,041,357,117 Average Total Cost Coverage 106% 3.0 Conditions attached to the tariff approval The conditions attached to this approval which shall form part of the license conditions of Kisumu Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff Target 2021/22 2022/23 2023/24 2024/25 Water coverage 86 87 88 89 Water quality standards 100% compliance with the quality standards Non- Revenue Water 31 29 28 26 Hours of Supply (Hrs) 24 24 24 24 Personnel Expenditure as % of O&M Costs 30 28 26 24 Staff per 1000 connections 5 5 5 5 Metering ratio 100 100 100 100 Collection Efficiency (%) 95 95 95 95 Resale at Kiosk Regulate resale by kiosk vendors at KSh. 2 per 20-litres. Tariffs at kiosks must be displayed at strategic points for public awareness (ii) Annual budgets: The utility shall adhere to the budgetary levels set in the tariff. (iii) Construction of Office Block: Provision for development of office block in the tariff has been made with a condition that the funds are ring fenced pending processing of title/ lease deed for the subject parcel in the names of KIWASCO. (iv) Surpluses: The surpluses projected to be realised shall be set aside to implement priority service delivery capital projects. KIWASCO shall be required at the end of every financial year to identify the priority project to be implemented and obtain approval from WASREB. (v) Catchment Protection: The utility shall undertake measures to conserve/ protect the catchment areas of their source of water as part of Corporate Social Responsibility. (vi) Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided. (vii) Creation of distinct water and sewer cost centres: KIWASCO will ensure it creates separate water and sewer cost centres and maintains distinct record of operations of the two centres. (viii) Tariff Assessment: KIWASCO will be required to carry out a self-assessment of the trend in Billing (Ksh) within the first 3 months of approval and implementation of the tariff. The detailed report should be submitted to WASREB. (ix) Gradually Phase out the DMMs: The WSP to gradually phase out the Delegated Management Model (DMM) and provide services directly to safeguard the interest and right of the consumers. (x) Investments: The utility shall undertake the investments in Annex 1: (xi) Annex 1: Investments Total (KSh.) 2021/2022 (KSh.) 2022/2023 (KSh.) 2023/2024 (KSh.) 2024/25 (KSh.) NEW INVESTMENTS Water Infrastructure Installation of Surge Protectors 2,580,000 2,580,000 - - - Construction and Equipping of Microbiological Laboratory 7 ,750,688 - 7,750,688 - - Procurement And Installation of Bulk Meters 20,588,400 6,862,800 6,862,800 6,862,800 GIS and Hydraulic Zoning 9,490,910 - - 9,490,910 - Water Services Improvements - Gulf Wsp 16,577,791 - 5,577,790 5,000,000 6,000,000 Water Services Improvements - Nyanas Wsp 16,103,988 - 5,103,987 5,000,000 6,000,000 Procurement and Installation of Domestic Meters 71,400,000 17,850,000 17,850,000 17,850,000 17,850,000 144,491,77 20,430,000 43,145,266 44,203,711 36,712,801 Office Equipment and Furniture Boardroom tables 600,000 - 600,000 - - Boardroom chairs 1,680,000 - 1,680,000 - - Visitors chair 3-seater 266,000 38,000 152,000 38,000 38,000 Total (KSh.) 2021/2022 (KSh.) 2022/2023 (KSh.) 2023/2024 (KSh.) 2024/2 (KSh.) Visitor's chair - Catalina Seats 440,000 110,000 110,000 110,000 110,000 Ordinary Office Desk with Lockable Drawers 1,400,000 3503)00 350,000 350,000 350,000 Executive Office Desk with Lockable Drawers 910,000 130,000 520,000 130,000 130,000 Ordinar Office Chair (Medium Back) 1,100,000 200,000 500,000 200,000 200,000 Ordinar Office Chair (Hi _h Back) 1,320,000 240,000 600,000 240,000 240,000 Executive Office Chair (High Back) 680,000 120,000 320,000 120,000 120,000 Workstations (4 Compartments) 3,520,000 880,000 880,000 880,000 880,000 Office cabinet - steel (4 drawer) 1,320,000 330,000 330,000 330,000 330,000 Smart Flatscreen 80" 1,050,00(1 150,000 600,000 150,000 150,000 Paper Shredder 175,000 25,000 100,000 25,000 25,000 Air conditioner (AC)- List of Offices to be installed with Ac 3,380,000 260,000 1,040,000 1,040,000 1,040,000 Desk top Computers 15" LCD (35 and above) With OS 2,000,000 500,00(1 500,000 500,000 500,000 Laptop Computers (i5 and above) With OS 4,200,000 1,050,000 1,050,000 1,050,000 1,050,000 HP 3- in -1 Printer (printer, scanner, copier) - Up to A3- Models- Consider Value for Money for multifunction _printers 975,000 195,000 520,000 130,000 130,000 Book Shelf (Lockable) 187,000 17,000 136,000 17,000 17,000 CCTV Central Unit 400,000 5 100,000 100,000 100,000 100,000 CCTV Cameras 1,680,000 52 640,000 400,000 400,000 240,000 Camera (Niko D750 24MP 3.2" LCD DSR 240,001 2 120,000 1 120,000 - - Mobile Smartphones- Meter reading 720,030 10 180,000 10 180,000 10 180,000 10 180,000 Samsung Galaxy Tab- For GIS 300,003 4 100,000 2 100,000 1 1100,000 - Samsung Tablets for BOD's and Commercial Dept 850,006 28 550,000 2 100,000 2 100,000 2 100,000 Water Dispenser (Hot and Cold) 690,018 5 300,000 10 150,000 5 150,000 3 90,000 30,083,000 6,585,000 11, i 38,000 6,340,000 6,020,000 IT, Automation and Communication Improvement Integration of all field automated services into the SCADA system 567, 000 567,000 - - - High Volume Speakers for Boardroom 125,000 1 25,000 50,000 25,000 25,000 3,500,000 3,50(1,000 Asset Tagging by Barcodes 1,000,000 1,000,000 - Biometric Register 2,250,000 - 2,250,000 Water Hydraulic Modelling Software (Water GEMS) 200,000 I 200,000 - - GIS Software (ArcGIS Pro) 400,000 I 200,000 I 200,000 - Civil Design and Survey Software (AutoCAD Civil 3D) 200,000 1 200,000 - - Graphic Design Software 200,000 1 100,000 100,000 - Picture Editing Software 100,000 I 100,000I - - - - 8,542,000 4,592,000 1,550,000 2,375,000 25,000 Purchase of MNehicles, M/Cycles and Equpiments Double Cab 4x2 Pickup & Motor cycles 25,200,000 I 6,300,000 1 6,300,000 2 6,300,000 1 6,300,000 Total investment in movable assets 63,825,000 17,477,000 18,988,000 15,015,000 12,345,000 60% Proportion of Movable Assets allocated to water 38,295,000 10,486,200 11,392,80(1 9,009,000 7,407,000 40% Proportion of Movable Assets allocated to sewerage 25,530,000 6,990,800 7,595,200 6,006,000 4,938,000 Total New Investments 208,316,77 37,907,000 62,133,266 59,218,711 49,057,801 Asset Renewal Sewerage Infrastructure Rehabilitate Kisat Electromechanical Equipment 8,043,053 8,043,053 - Rehabilitation of Nyalenda Stabilization Ponds - Procure Sewer Manhole Covers for Open and Blocked Sewers 9,020,000 2,255,000 2,255,000 2,255,000 2,255,000 17,063,053 2,255,000 10,298,053 2,255,000 2,255,000 Office Equipment and Furniture Desk top Computers 15" LCD (i5 and above) with Operating System 2,000,000 16 500,000 31 500,000 15 500,000 15 500,000 10th December, 2021 l'otal (KSh.) 2021/2022 (KSh.) 2022/2023 (KSh.) 2023/2024 (KSh.) 2024/25 (KSh.) Laptop Computers (i5 and above) with Operating System 4,200,000 20 1,050,000 40 1,050,000 25 1,050,000 15 1,050,000 6,200,000 1,550,000 1,550,000 1,550,000 1,550,000 Total Asset Renewal 23,263,053 3,805,000 11,848,053 3,805,000 3,805,000 Total (New Investment and Asset Renewal) (K.A.) 7:31,579,83 41,712,000 71,981,318 63,(123,711 52,862,801 Date the 26th November, 2021. PETER NJAGGAH (ENG.), MR/3258946 Ag. Chief Executive Officer, Water Services Regulatory Board.