GAZETTE NOTICE NO. 5970

in accordance with 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 Gatamathi Water and Sanitation Company Limited is justified in order to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions. WASREB gives a one (1) months’ notice to all existing and potential customers of Gatamathi Water and Sanitation Company Limited that the approved tariffs for the three Financial Years 2024/25, 2025/26, 2026/27 and 2027/28 shall be as follows: 2.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2024/2025 to 2027/2028 Consumer Categories Consumption Block Approved Tariff (m3) (KSh./m3) Domestic/Residential 1-6 60 7-20. 70 21-50 80 51-100 90 101-300 110 >300 130 Multi-Dwelling Units Flat Rate/M3 70 Commercial/Industrial 1-50 70 51-100 90 101-300 110 >300 130 Government 1-50 70 51-100 90 100-300 110 >300 130 Public Schools, Colleges and Universities 1-600 65 601-1200 75 >1200m3 90 Water Kiosks Per M3 35 Customers with non-functional meters shall be billed based on the average of the last three months’ bills. 1.2 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 2025. 1.3 Miscellaneous Charges These shall be as follows: Item/ Service Charge (KSh.) Water Deposit Category of consumer Domestic 2,500 Multi Dwelling Units (MDU - Small); 4-10 units 5,000 Multi Dwelling Units (MDU - Medium); 11-20 units 10,000 Multi Dwelling Units (MDU - Large); > 21 units 20,000 Retail shops less than 10m3 3,000 Retail shops more than 10m3 3,500 Bar, restaurants less than 15 m3 4,000 Bar, restaurants more than 15 m3 6,000 Hotel less than 150 m3 12,000 Hotel more than 150 m3 15,000 Hospitals more than 150 m3 20,000 Health centres less than 150 m3 12,000 Schools less than 200 m3 10,000 Schools and other institutions more than 200 m3 20,000 Minor construction sites more than 200 m3 15,000 Major construction sites more than 300 m3 50,000 Light industries less than 200 m3 30,000 Medium industrial between 200 m3 and 300 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 2,500 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 WSP Service 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 THE KENYA GAZETTE 17th May, 2024 Item/ Service Charge (KSh.) Meter testing on request 500 Sewer Connection- Residential/ Domestic 2,500 Sewer Connection- Commercial, Government, schools, Universities and Colleges 5,000 Sewer Connection- Industrial 15,000 Private sewer unblocking 2,500 Leak detection services 1,000 Sewer Reconnection fee (At mains) 15,000 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 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) 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 Gatamathi Water and Sanitation Company Limited during the tariff period: Expenditure Item 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Operations 49,799,007 49,500,822 59,839,607 66,777,188 70,508,147 74,448,695 Maintenance 13,373,393 14,042,063 11,114,129 9,022,849 8,300,925 9,615,496 Regulatory Levy 2,487,067 2,861,945 3,563,704 4,093,226 4,502,548 4,952,803 Total O&M Costs 65,659,467 66,404,830 74,517,440 79,893,263 83,311,620 89,016,994 Investment Costs - - 6,100,000 21,301,603 24,609,942 25,804,008 Asset Renewal - - - 2,714,874 4,098,361 3,485,899 Total Costs 65,659,467 66,404,830 80,617,440 103,909,740 112,019,923 118,306,901 Total Billing (KShs) 46,111,509 64,468,104 100,048,743 119,119,672 131,901,282 144,710,576 Collection Efficiency (%) 95% 95% 85% 90% 90% 90% Projected Revenue 43,805,933 61,244,699 85,041,432 107,207,705 118,711,153 130,239,519 Total Cost Coverage 67% 92% 105% 103% 106% 110% 3.0 Conditions attached to the tariff approval. The conditions attached to this approval which shall form part of the license conditions of Gatamathi Water and Sanitation Company Limited are: (viii) Service Delivery Conditions attached to the Tariff Target 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 Water Coverage (%) 58% 58% 59% 60% 61% 62% Water quality standards (%) 99% 100% Compliance with Standards Personnel Expenditure as % of O&M 47% 49% 46% 45% 45% 44% Non-Revenue Water 59% 59% 54% 49% 45% 41% Hours of Supply (Hrs.) 23 23 24 24 24 24 Staff per 1000 connections 6 6 6 6 5 5 Maintenance Expenditure as % of O&M 20% 21% 15% 11% 10% 11% Metering ratio (%) 60% 60% 65% 75% 85% 100% Collection Efficiency (%) 95% 95% 85% 90% 90% 90% Resale at Kiosk KSh. 2.00 per 20l Jerry Can (ix) Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. (x) Surpluses: The surpluses realised during the tariff period shall be used to implement priority service delivery capital projects approved by WASREB (xi) Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided (xii) Ring-Fencing of Capital Expenditure: The WSP to open a separate account for capital component of the tariff, to deposit the appropriate share of revenue into this account which is only to be used for capital expenditure and repayment of loans as provided for in the approved tariff 17th May, 2024 THE KENYA GAZETTE (xiii) Catchment Protection: The utility shall undertake measures to conserve/ protect the catchment areas of their water source as part of Corporate Social Responsibility (xiv) Investments: The utility shall undertake the investments in Annex 1: Annex 1: Investments Proposed Investments by Gatamathi WSP Amount (KSh.) 2024/2025 2025/2026 2026/2027 2027/2028 Non-Revenue Water Management Flat Rate Connections _ (Targeted 4,236 Connections) 2,500,000 10,000,000 8,681,050 - Meter Replacements _ (Targeted 2,000 Connections) - 2,500,000 2,500,000 2,500,000 Procurement of 8" master meters and fittings. Installation in Constructed 4No. Chambers 1M*1M 1,200,000 - - - Procurement of ultrasonic flow meter and potable meter testing bench - - 1,050,000 1,050,000 Procurement of 1" Pressure Control Valves and the Fittings, Installation of the same in constructed chambers of 500mm*500mm 750,000 750,000 750,000 750,000 Procure mobile smart phones 100,000 - - - Increased Access in WSP Area of Supply New Connections _ (Targeted 1,770 Connections) 1,250,000 2,550,000 2,900,000 3,400,000 Line Extensions - Kiambugi & Mukurwe wa Nyagathanga 5,201,603 8,428,892 13,004,008 Procurement of Movable Assets Procurement of 125cc 20No. Motorcycles for patrol 300,000 300,000 300,000 600,000 Procure 1No. Double CAB motor vehicle for NRW Unit - - - 4,500,000 Total Investments 6,100,000 21,301,603 24,609,942 25,804,008 Water Networks Rehabilitation Gatango Water Supply Kamagoko-Kora Main - Line 2,714,874 2,766,824 Kairo School Line, Gikindu line, Wangethi Line, Ndugu Line, Wamikurwe Line, Gicharuri, Pilot,Gati Iguru 2,154,362 Mathioya Water Supply 1,331,537 1,331,537 Total Network Rehabilitation - 2,714,874 4,098,361 3,485,899 Dated the 2nd May, 2024. JULIUS ITUNGA, MR/5723150 Ag. Chief Executive Officer, Water Services Regulatory Board.