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GAZETTE NOTICE NO. 6745

GAZETTE NOTICE NO. 6745

THE WATER ACT

(Cap. 372)

APPROVAL


in exercise of the powers conferred by section 72 (1) (b) and (2) of the Water Act, 2016, has approved the regular tariff adjustment for the area served by Kirandich Water Company Limited (KIRWASCO). Kirandich Water Company Limited (KIRWASCO) applied to the Water Services Regulatory Board (WASREB) for review of water services tariffs, for the period 2025/2026 to 2028/2029 as per section 72 (1) b of the Water Act 2016. Public consultation on the KIRWASCO application was carried out in accordance with 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 KIRWASCO to improve service delivery, operate sustainably and protect consumer interests by meeting the conditions attached to the tariff. WASREB hereby gives a one-month notice from the date of this communication to all existing and potential customers of KIRWASCO that the structure of approved tariffs for water services for the four financial years 2025/2026, 2026/2027, 2027/2028 and 2028/2029 shall be as follows: 1.0 APPROVED TARIFF STRUCTURE 1.1 Water Tariff Structure for the period 2025/2026 to 2028/2029 Consumer Categories Consumption Block Approved Tariff (M3) (KSh/M3) Domestic/Residential 1-6 85 7-20. 100 21-50 105 51-100 115 101-300 130 >300 145 Multi-Dwelling Units Flat rate 100 Commercial/Industrial 1-50 100 51-100 110 101-300 130 >300 140 Schools, Universities, and Colleges 1-600 95 601-1200 110 >1200M3 130 Water Kiosks Per M3 50 Customers with non-functional meters shall be billed based on the average of the last three months’ bills. 1.2 Sewerage Tariff Structure for the period 2025/2026 to 2028/2029 (a) Consumers with a Water Connection (i) Sewerage will be charged at 75% of the water volumes, billed at the tariff for water specified (in 1.1) above for all customer categories. (ii) Disconnected water accounts shall be charged based on the average of the last three months’ sewer charges before the disconnection. (b) Consumers without a Water Connection Sewerage consumers without a water connection shall be charged as follows: (i) Single dwelling Domestic unit: KSh. 300 Per Month (ii) All other categories: 75% of the volume of water consumed as per the metered source of water. 1.3 Indexation 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 2027. 1.4 Miscellaneous Charges These shall be as follows: 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 8th May, 2026 THE KENYA GAZETTE Item/ Service Charge (KSh.) 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 Customers with only sewer connection are to be charged a deposit equivalent to a water connection 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 and 5,000 respectively per tanker within the WSP area for all consumers Sale of water per M3 at Bowsing Point (own tanker) 95 Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 Special meter reading under the customer’s request 500 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 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 200 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 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 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 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 KIRWASCO during the tariff period: Expenditure Item 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 Operations 90,121,278 102,066,572 110,541,811 120,303,514 130,530,914 Maintenance 1,025,566 5,524,000 6,045,000 6,362,000 6,680,000 Regulatory Levy 1,209,793 2,090,094 3,018,601 3,299,642 3,537,119 Total O&M Costs 92,356,636 109,680,666 119,605,412 129,965,156 140,748,033 Investment Costs - 650,000 3,980,000 6,390,000 3,800,000 Total Costs 92,356,636 110,330,666 123,585,412 136,355,156 144,548,033 Total Billing (KSh.) 29,247,733 52,252,340 75,465,020 82,491,053 88,427,967 Collection Efficiency (%) 95% 95% 95% 95% 95% Projected Revenue 27,785,346 49,639,723 71,691,769 78,366,500 84,006,569 Operational Subsidy from the County Government - 56,933,164 62,626,481 68,889,129 75,778,042 Projected Revenue - With Subsidy 27,785,346 106,572,887 134,318,250 147,255,629 159,784,611 O&M Cost Coverage 30% 97% 112% 113% 114% Total Cost Coverage 30% 97% 109% 108% 111% 3.0 CONDITIONS ATTACHED TO THE TARIFF APPROVAL. The conditions attached to this approval which shall form part of the license conditions of KIRWASCO are: 2344 2344 3.1 Service Delivery Conditions attached to the Tariff Service Delivery Conditions Target 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 Water Coverage (%) 30% 29% 32% 33% 35% 40% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O&M 24% 25% 22% 21% 20% 19% Non-Revenue Water 67% 59% 52% 50% 48% 47% Hours of Supply (Hrs.) 12 13 14 15 16 16 Staff per 1000 connections 7 10 10 9 9 9 Metering ratio (%) 92% 97% 100% 100% 100% 100% Collection Efficiency (%) 95% 95% 95% 95% 95% 95% Resale at Kiosk 5ksh per 20 Litre jerry can 3.2 Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. 3.3 Surpluses: The surpluses realised during the tariff period shall be used to implement priority service delivery capital projects approved by WASREB 3.4 Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided 3.5 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. 3.6 Operational Subsidy: For the period 2025/2026 to 2028/2029, the County Government of Baringo is required to continue to provide subsidies to Kirandich Water Company Limited to be directed towards payment of electricity costs as shown in the table below: Expenditure Item 2025/2026 2026/2027 2027/2028 2028/2029 Operational Subsidy for Electricity (KSh) 56,933,164 62,626,481 68,889,129 75,778,042 3.7 Investments: The utility shall undertake the investments in Appendix 1. 4.0 PENALTY NOTICE 4.1 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. 4.2 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: (i) Payment of a penalty (ii) Suspension or cancellation of the licence (iii) Placement of the utility under Special Regulatory Regime (iv) Prosecution. APPENDIX 1: PROPOSED INVESTMENTS KIRWASCO INVESTMENTS SCHEDULE – INTERNALLY GENERATED FUNDS FY 2026/2027 Targetted Investment Guide Sample Descriptions Unit Unit Cost Quantity Project Cost (KSh) A. NRW Reduction Plan To reduce NRW from 59% to 52% Procurement of consumer volumetric water meters sizes 15mm,20mm,25mm, R200.plastic body, AMR ENABLED NO 6,500 100 650,000 Desktop computers HP i7 8th generation computer min 8GBRAM 750 GB storage NO 75,000 2 150,000 Desktop computers HP i5 8th generation computer min 8GBRAM 750 GB storage NO 30,000 2 60,000 Sub-Total 104 860,000 B. Rehabilitation of Service Lines Replacement of the pipeline Kapkut, Kapsoo, Ngusuria, Kapotimbpor- 2KM 50mm -90mm GI/HDPE KM 1,560,000 2 3,120,000 Total 210 3,120,000 Sub-total 2026/2027 3,980,000 FY 2027/2028 Targetted Investment Project Area Guide Size Sample Descriptions Unit Unit Cost Quantity Project Cost (Ksh) C. Regional Master meters Raw Master Meter- Kirandich Treatment Inlet>>Inclusi ve of Kirandich T/. Works 400MM Ultrasonic Meter No 1,800,00 1 1,800,000 8th May, 2026 THE KENYA GAZETTE Targetted Investment Project Area Guide Size Sample Descriptions Unit Unit Cost Quantity Project Cost (Ksh) installation fittings D. NRW Reduction Plan Reduce NRW from 52% to 50% Procurement of consumer volumentric water meters sizes 15mm,20mm,25m m, R200.plastic body, AMR Enabled No 6,500 400 2,600,000 District water meter, Volumetric multi jet water meters size 50mm, 75mm, 100mm, R200, plastic body, AMR ENABLED No 40,000 7 280,000 Ultrasonic tank level sensor No 75,000 2 150,000 E. Rehabilitation of Service Lines Replacement of pipeline Kapkut, Kapsoo, Ngusuria, Kapotimbpor -1km 50mm - 90mm GI/HDPE Km 1,560,00 1 1,560,000 Sub-total 2027/2028 1,806,50 411 6,390,000 FY 2028/2029 Project Area Guide Size Sample Descriptions Unit Unit Cost Quantity Project Cost (KSh.) F. NRW Reduction Plan To reduce NRW from 50% to 48% 15mm, 20mm, 25mm, R200. plastic body, AMR Enabled Procurement of consumer volumetric water meters No 6,500 400 2,600,000 Kirandich T/. Works- Master Meter-Kirandich Treatment Inlet>>Inclusive of installation fittings 250MM Ultrasonic meter No 1,200,000 1 1,200,000 Sub -Total 2028/2029 6,500 400 3,800,000 GRAND TOTAL 14,820,000 Dated the 1st May, 2026. RICHARD CHERUIYOT, Ag. Chief Executive Officer MR/8126551 Water Services Regulatory Board.

Dated the 1st May, 2026.

RICHARD CHERUIYOT,

Ag. Chief Executive Officer Water Services Regulatory Board.

Extracted Entities (1)

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6745

Details

Act / Legislation
THE WATER ACT
Reference
Cap. 372
Section
section 72 (1) (b)
Signed By
RICHARD CHERUIYOT
Title
Ag. Chief Executive Officer Water Services Regulatory Board
Date Signed
1st May 2026
Page
44
Extraction Method
regex