GAZETTE NOTICE NO. 65

under the powers granted by section 72 (1) (b) and (2) of the Water Act, 2016, has approved the regular tariff adjustment for the area served by Chemususu Water and Sanitation Company Limited (CHEWASCO). CHEWASCO applied to the Water Services Regulatory Board (WASREB) for a review of water services tariffs for the period 2025/2026 to 2027/2028 in line with section 72 (1) (b) of the Act. Public consultation on the CHEWASCO application was carried out by the requirements of section 139 of the Water Act 2016. Having considered the application, the written and oral submissions by all stakeholders and the current data, WASREB has determined that an upward tariff review is justified for CHEWASCO to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions attached to the tariff. 2nd January, 2026 THE KENYA GAZETTE WASREB gives a one-month notice from the date of this communication to all existing and potential customers of CHEWASCO that the structure of approved tariffs for water services for the three financial years 2025/2026, 2026/2027 and 2027/2028 shall be as follows: 2.0 Approved Tariff Structure for the period 2025/2026 to 2027/2028 2.1 Water Tariff Consumer Categories Consumption Block Approved Tariff (M3) (KSh./M3) Domestic/Residential 1-6 50 7-20. 70 21-50 85 51-100 105 101-300 125 >300 140 Commercial/Industrial/Government/Institutions 1-50 85 51-100 105 101-300 125 >300 140 Public Schools, Colleges and Universities 1-600 70 601-1200 100 >1200m3 140 Water Kiosks Per M3 35 Bulk Sales to a WSP for Resale Per M3 50 Customers with non-functional meters shall be billed based on the average of the last three months’ bills. 2.2 Indexation The utility’s approved tariffs for water and sewerage shall be eligible for annual indexation, as per the Water Services Regulatory Board (WASREB) regulations. The inflation adjustment shall come into effect every July of the tariff period, commencing July 2027. 2.3 Miscellaneous Charges Item/ Service Charge (KSh.) Water Deposit Category of consumer Domestic 2,500 Retail shops less than 10m3 3,000 Retail shops more than 10m3 3,500 Bar and restaurants less than 15 m3 4,000 Bar and restaurants more than 15 m3 6,000 Hotel class “A” and “B” less than 150 m3 12,000 Hotel class “A” and “B” more than 150 m3 15,000 Hotel class “C” and ‘D’ less than 150 m3 18,000 Hotel class “C” and ‘D’ more than 150 m3 20,000 Hospitals and Health centres more than 150 m3 20,000 Hospitals and Health centres less than 150 m3 12,000 Schools and other institutions more than 200 m3 20,000 Schools and other institutions less than 200 m3 10,000 Minor construction sites of more than 200 m3 15,000 Major construction sites more than 300 m3 50,000 Light industries less than 200 m3 30,000 Medium industries between 200 m3 and 300 m3 50,000 Heavy industries of more than 300 m3 100,000 Water Kiosks 5,000 Other Charges Service New water connection fee – Connection size: ½ 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 the WSP area for all consumers Sale of water Per M3 at bowsing point (own tanker) 70 Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 Special meter reading under customer’s request 500 Private sewer unblocking 2,500 Leak detection services 1,000 Printing of customer’s statement under own request 200 For cutting off the supply at the request of the consumer 200 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 26 26 Item/ Service Charge (KSh.) 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 illegality Illegal water connection, (Fraud) – Domestic 30,000 plus estimated consumption during the period of the illegality Overcharging (fraud) at water kiosk 15,000 Self-reconnection after cut-off for non-payment 5,000 and billing to be backdated from the date of cut-off Surcharge for tampering with meters (this to include meter removal, reversing of meter etc) 5,000 Surcharge for direct suction of water from the supply line using a pump 10,000 3.0 Cost Summary Below is the summary of the recommended cost structure that makes up the total costs to be incurred by CHEWASCO during the tariff period: Expenditure Item 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 Operations 29,499,354 40,169,109 43,052,485 45,182,501 47,578,153 Maintenance 2,518,506 2,518,506 2,620,254 2,672,659 2,726,112 Regulatory Levy 960,000 1,507,886 1,859,044 2,026,358 2,208,731 Total O&M Costs 32,977,860 44,195,501 47,531,783 49,881,518 52,512,996 Investment Costs - - 8,890,000 17,277,500 17,545,000 Debt Repayment - - - - - Total Costs 32,977,860 44,195,501 56,421,783 67,159,018 70,057,996 Total Billing (KShs) 35,350,898 42,638,631 63,642,196 70,524,873 77,415,269 Collection Efficiency (%) 96% 95% 95% 95% 95% Projected Revenue 33,866,160 40,506,699 60,460,086 66,998,629 73,544,505 O&M Cost Coverage (%) 103% 92% 127% 134% 140% Total Cost Coverage (%) 103% 92% 107% 100% 105% 4.0 Conditions attached to the tariff approval The conditions attached to this approval, which shall form part of the license conditions of CHEWASCO, are: i. Service Delivery Conditions attached to the Tariff Target 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 Water Coverage 22% 25% 26% 27% 28% Water quality standards 83% 55% 100% Compliance with Standards Personnel Expenditure as % of O&M 45% 42% 42% 42% 42% Non-Revenue Water 66% 61% 55% 50% 45% Hours of Supply (Hrs.) 19 22 23 24 25 Staff per 1000 connections 16 16 15 13 11 Metering ratio 45% 90% 100% 100% 100% Collection Efficiency 96% 94% 95% 95% 95% Resale at Kiosk Kshs. 2.00 per 20l Jerry Can ii. Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. iii. Surpluses: The surpluses realised during the tariff period shall be used to implement priority service delivery capital projects approved by WASREB. iv. Reporting: The utility shall submit quarterly performance reports to WASREB in the prescribed format. v. Metering: CHEWASCO shall progressively enhance the metering ratio to attain 100% as per condition 3.0 above. vi. Regulatory Levy: The utility is to pay a monthly regulatory levy based on 4% of turnover, which is inclusive of billing for other services and interest income earned. vii. Investments: The utility shall undertake the investments in Table 1: 5.0 Penalty Notice 5.1 Take note that failure of an Accounting Officer to administer this tariff and the conditions attached to it is an offence subject to section 196 (2) of the Public Finance Management Act 2012, 117 (1) (aa) of the County Governments Act 2012, Sections 147 and 158 of the Water Act 2016, and Regulations 46 (1), 101 and 105 of the Water Services Regulations 2025. 5.2 Failure to comply with the tariff and conditions attached to it amounts to a breach of licence conditions and shall attract sanctions pursuant to section 92 of the Water Act 2016, including: v. Payment of a penalty vi. Suspension or cancellation of the licence vii. Placement of the utility under Special Regulatory Regime viii. Prosecution. Table 1: Investments INVESTMENTS SCHEDULE - INTERNALLY GENERATED FUNDS- CHEMUSUSU WATER AND SANITATION COMPANY LIMITED FY 2025/2026 Asset Class Specific Asset Descriptions Unit Unit Cost Quantity Project Cost (Ksh) A Water System a) Washing Machine High-pressure Pump for Tank Cleaning No. 100,000 1 100,000 b) Pipes and Pipes, Gate Valves, Air Valves, HDPE No. 300,000 4 1,200,000 2nd January, 2026 THE KENYA GAZETTE INVESTMENTS SCHEDULE - INTERNALLY GENERATED FUNDS- CHEMUSUSU WATER AND SANITATION COMPANY LIMITED FY 2025/2026 Asset Class Specific Asset Descriptions Unit Unit Cost Quantity Project Cost (Ksh) Fittings Connectors, etc B Water Meters a) Consumer Water Meter R200 Meters No 6,000 1,000 6,000,000 C Computers and Accessories (Hardware and Software) a) Desktop Computers HP i7 8th Gen Computers min 8GB RAM 750GB Storage No. 75,000 2 150,000 b) Laptops HP i5 8th Gen Computers min 8GB RAM 750GB Storage No. 60,000 3 180,000 c) CCTV Camera Hikvision 8 Channel HD DVR 12v/1amp Power Adapter Wired Mouse 1 Cable Roll 100 mtrs 1 Power Supply 10 amps open 1 TB Western Digital (WD) Hard disk 16 pcs Bnc connectors 8 pcs DC jacks Power Cable No. 30,000 2 60,000 d) Billing System Upgrade Integration with Mpesa, Bank accounts, and send/query bills via SMS and email No. 500,000 1 500,000 Integration with Customer Relations Management, Meter Management, Management of NRW, Creation of Job cards, and GIS integration No. 700,000 1 700,000 Total 8,890,000 FY 2026/2027 Asset Class Specific Asset Sample Descriptions Unit Unit Cost Quantity Project Cost (Ksh) A Water System a) Pipes and Fittings Pipes, Gate Valves, Air Valves, HDPE Connectors, etc No. 300,000 4 1,200,000 b) Leak Detector Detects Bursts and Leakages No. 2,000,000 1 2,000,000 c) Pipeline Extensions Complete Overhaul of Old network with PVC Kilometres 1,600,000 5.30 8,482,500 B Water Meters a) Consumer Water Meter R200 Meters Kelelwa zone- 250 meters, Nyal zone- 300 meters, E/Ravine Zone- 100meters, Narasura Zone- 100 meters, Emining Zone- 50 Meters No 6,000 800 4,800,000 C Computers and Accessories (Hardware and Software) a) Desktop Computers HP i7 8th Gen Computers min 8GB RAM 750GB Storage No. 75,000 5 375,000 b) Laptops HP i5 8th Gen Computers min 8GB RAM 750GB Storage No. 60,000 5 300,000 c) CCTV Camera Hikvision 8 Channel HD DVR 12v/1amp Power Adapter Wired Mouse 1 Cable Roll 100 mtrs 1 Power Supply 10 amps open 1 TB Western Digital (WD) Hard disk 16 pcs Bnc connectors 8 pcs DC jacks Power Cable No. 30,000 4 120,000 Total 17,277,500 FY 2027/2028 Asset Class Specific Asset Sample Descriptions Unit Unit Cost Quantity Project Cost (Ksh) A Water System a) Pipes & Fittings Pipes, Gate Valves, Air Valves, HDPE Connectors, etc No. 300,000 4 1,200,000 b) Pipeline Extensions Complete Overhaul of Old Network with PVC and Asbestos kilometres 500,000 20 10,000,000 B Water Meters a) Consumer Water Meter R250 Meters E/Ravine Zone- 200 meters, Mogotio Zone- 250 meters, Emining Zone- 200 meters, Narasura Zone- 350 meters No 6,000 1,000 6,000,000 C Computers and Accessories (Hardware and Software) a) Desktop Computers HP i7 8th Gen Computers min 8GB RAM 750GB Storage No. 75,000 3 225,000 b) Laptops HP i5 8th Gen Computers min 8GB RAM 750GB Storage No. 60,000 1 60,000 c) CCTV Camera Hikvision 8 Channel HD DVR 12v/1amp Power Adapter Wired Mouse 1 Cable Roll 100 mtrs 1 Power Supply 10 amps open 1 TB Western Digital (WD) Hard disk 16 pcs Bnc connectors 8 pcs DC jacks Power Cable No. 30,000 2 60,000 Total 17,545,000 Dated the 2nd December, 2025. RICHARD CHERUIYOT, MR/7897570 Ag. Chief Executive Officer, Water Services Regulatory Board.