GAZETTE NOTICE NO. 5972

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 the latest available data, WASREB has determined an upward tariff review for KITWASCO is justified 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 KITWASCO that the approved tariffs for the four Financial Years 2024/25, 2025/26, 2026/27, and 2027/28 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff for the period 2024/2025 to 2027/2028 Consumer Categories Consumption Block Approved Tariff (M3) (KSh./M3) Domestic/Residential 1-6 190 7-20. 210 21-50 225 51-100 235 101-300 240 >300 250 Multi-Dwelling Units Flat Rate 210 Government Institutions 1-50 210 51-100 235 101-300 240 >300 250 Commercial/Industrial 1-50 210 THE KENYA GAZETTE 17th May, 2024 Consumer Categories Consumption Block Approved Tariff (M3) (KSh./M3) 51-100 235 101-300 240 >300 250 Schools/ Colleges/Universities 1-600 210 600<1200m3 220 >1200m3 230 Unique Consumer Categories Bulk Water Supply (Per m3) 190 Bowsing Points (Per m3) 190 Water Kiosks (Per m3) 190 1.2 Sewerage Tariff 1.2.1 Consumers with a Water Connection (a) 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. (b) Disconnected water accounts shall be charged based on the average of the last three months’ sewerage charges before the disconnection. 1.2.2 Customer with no water connection Sewerage consumers without a water connection shall be charged as follows: • Domestic customers without a metered source of water (Per Single dwelling unit): KSh. 300 Per Month • All other categories: 75% of the volume of water consumed as per the metered source of water including boreholes, at the rates specified in (1.1) above. 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 2025. 1.4 Miscellaneous Charges Item/ Service Charge (KSh.) Water Deposit Category of consumer Domestic 2500 Retail shops less than 10m3 3000 Retail shops more than 10m3 3,500 Bar, and restaurants less than 15 m3 4000 Bar, 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 15000 Hotel class “C” and ‘D’ less than 150 m3 18000 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 m3 20,000 Schools 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 industrial between 200 m3 and300 m3 50,000 Heavy industries of 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: 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 Tankers 3,500, 7,000 respectively per tanker within the WSP area for all consumers Sale of water Per M3 at bowsing point (own tanker) As per the approved Tariff Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on 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 Statement of account fees 200 17th May, 2024 THE KENYA GAZETTE Item/ Service Charge (KSh.) 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 Cost Structure 2.1 Cost Summary Below is the summary of the recommended cost structure that makes up the total costs to be incurred by KITWASCO during the tariff period: KITWASCO Expenditure Item 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Operations 270,120,413 256,316,134 287,707,085 320,129,977 346,606,393 371,915,812 Maintenance 18,903,047 7,371,533 10,406,418 11,447,060 13,736,472 16,483,766 Regulatory Levy 5,810,354 6,319,976 10,222,975 13,383,860 16,055,081 16,939,360 Operation and Maintenance (O&M) Costs 294,833,814 270,007,643 308,336,478 344,960,897 376,397,945 405,338,938 Minor Investments - 6,056,717 4,355,105 11,466,123 14,905,988 11,249,872 Debt Repayment 665,588 1,996,764 1,339,773 - - - Total Costs 295,499,402 278,061,124 314,031,355 356,427,019 391,303,934 416,588,810 Total Billing (KSh.) 157,799,755 157,799,755 274,940,238 355,936,924 426,873,883 450,487,105 Collection Efficiency (%) 108% 95% 91% 92% 93% 95% Projected Revenue - Without Subsidy 170,262,568 149,909,767 250,195,617 327,461,970 396,992,711 427,962,749 Operational Subsidy from County Government of Kitui 59,673,634 67,579,127 63,835,738 28,965,050 - - Projected Revenue - With Subsidy 229,936,202 217,488,894 314,031,355 356,427,019 396,992,711 427,962,749 Total Cost Coverage (%)- With Subsidy 78% 78% 100% 100% 101% 103% 3.0 Conditions attached to the tariff approval. The conditions attached to this approval which shall form part of the license conditions of KITWASCO are: (i) Service Delivery Conditions attached to the Tariff Target 2023/24 2024/25 2025/26 2026/27 2027/28 Water Coverage (%) 68% 69% 70% 71% 72% Water quality standards (%) 100% 100% Compliance with Standards Personnel Expenditure as % of O&M 25% 27% 26% 23% 22% Maintenance Expenditure as % of O&M 6% 3% 3% 3% 4% Investment Expenditure as a % of Total Expenditure 0% 2% 1% 3% 4% Non-Revenue Water 52% 48% 45% 42% 40% Hours of Supply (Hrs.) 15 15 16 17 18 Staff per 1000 connections 12 12 11 10 9 Metering ratio (%) 100% 100% 100% 100% 100% Collection Efficiency (%) 108% 95% 91% 92% 93% Resale at Kiosk KSh. 5.00 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) Creation of distinct water and sewer cost centres: KITWASCO will ensure it creates separate water and sewer cost centres and maintains distinct record of operations of the two centres. (vi) Operational Subsidy: For the period 2024/25 and 2025/2026, the County Government of Kitui is required to continue to provide a subsidy to Kitui Water and Sanitation Co. (KITWASCO) to be directed towards payment of production electricity for the Masinga Supply System. THE KENYA GAZETTE 17th May, 2024 Financial Year Amount (KSh.) 2024/2025 63,835,738 2025/2026 28,965,050 (vii) Investments: The utility shall undertake the investments in Table 1: Table 1: Investments Proposed Investment Targeted Location Details of Investment Specifications Year of Implementation 2024/2025 2025/2026 2026/2027 2027/2028 Zonal Meters Masinga Mechanical Cold-Water meter DN 50 2 79,800 6 239,400 4 159,600 3 119,700 DN 100 1 65,000 1 65,000 - - - - Automatic Meter Reading (AMR) Meter type DN 50 - - - - 2 130,000 2 130,000 Production meter DN 300 - - 2 2,000,000 - - - - Zonal meters Kithyoko Mechanical Cold-Water meter DN 50 - - 2 79,800 2 79,800 1 39,900 DN 40 - - 2 65,000 - - 1 32,500 Automatic Meter Reading (AMR) Meter type DN 50 - - - 1 2 130,000 2 130,000 DN 25 - - 1 19,500 - - - - Zonal Meters Katheka Mechanical Cold-Water meter DN 50 - - 2 79,800 2 79,800 3 119,700 DN 200 - - 2 290,000 - - - - DN 40 - - 2 65,000 - - - - DN 400 - - - - 1 600,000 2 600,000 DN 200 - - - - 1 250,000 - - Master meters Intake and Treatment Plant Automatic Meter Reading (AMR) Meter type DN 400 - - - - - - 2 1,200,000 Zonal Meters Matinyani Mechanical Cold-Water meter DN 50 - - 4 159,600 4 159,600 4 159,600 Zonal meters Township Mechanical Cold-Water meter DN 50 - - - - 10 550,000 10 550,000 DN 100 - - - - 4 130,000 4 130,000 DN 250 - - 10 550,000 - - - - DN 300 - - 4 130,000 - - - - Production/Bulk/Master/Zonal meters 3 144,800 38 3,743,101 32 2,268,800 34 3,211,400 New Connections Metering of New Consumers Consumer meters DN 15 450 2,250,000 1,000 5,000,000 800 4,000,000 800 4,000,000 Assorted new connection materials Sum Lot 450,000 1,000,000 Lot 800,000 Lot 800,000 Consumer Meters 450 2,700,000 1,000 6,000,000 800 4,800,000 800 4,800,000 Purchase of support equipment for NRW Reduction NRW Related Equipment Installation of meter testing bench Lot 1 700,000 - - - - - - Meter Replacement - Consumer Meters Lot 100 400,000 100 400,000 150 600,000 200 800,000 Purchase of PRVs DN50 Lot - - 5 275,000 5 195,000 15 585,000 Leak detector Lot - - 1 530,000 - - - - Purchase of PRVs DN25 Lot - - 25 687,500 - - - - Plastic Meter seals Lot - - 200 600,000 200 500,000 200 600,000 Portable meter testing kit Lot - - 1 500,000 - - 2 640,000 Surge supressing valve Lot - - 2 300,000 - - - - Automation of kiosks Lot - - - - 5 1,500,000 PVC Pipe locator Lot - - - - 1 500,000 1 697,450 NRW Equipment 101 1,100,000 334 3,292,500 361 3,295,000 418 3,322,450 Sub-Total 1 - NRW Management 352 1,744,800 704 6,450,601 471 3,773,800 416 4,688,950 Pipeline Extension Assorted sizes mm diameter PN16 HDPE pipe Length - - - - 2,000 1,666,667 - - Water line improvement- Rerouting Assorted mm diameter PN16 uPVC pipe (6M uPVC STRAIGHTS) Length - - 3,500 2,916,667 3,500 2,916,667 5,000 1,666,667 Kitui Town Rehabilitation of sewer Sewer manholes in Kitui Town DN 300 - - 5 150,000 20 600,000 2 60,000 17th May, 2024 THE KENYA GAZETTE Proposed Investment Targeted Location Details of Investment Specifications Year of Implementation 2024/2025 2025/2026 2026/2027 2027/2028 system to improve services. Sub-Total 2 - Network Extension and Rehabilitation - - 3,505 3,066,667 5,520 5,183,333 5,002 1,726,667 Mbooni Solarisation of Boreholes Mbooni Borehole (45 Kw Motor) - - - - - - 1 4,434,255 Mutune Mutune Borehole (7.5kw Motor) - - - - 1 1,548,855 - - Nzalani Nzalani Borehole (11 Kw Motor) - 1,810,305 - - - - - - Museve Museve Borehole (7.5 Kw Motor) - - 1 1,548,855 - - - - Sub-Total 3 - Solarisation of Boreholes - 1,810,305 1 1,548,855 1 1,548,855 1 4,434,255 Construction Buildings Construction of Store and Office Space Lot 1 800,000 - - - - - - Motorcycles Movable Assets Motor Bikes No. - - 2 400,000 2 400,000 2 400,000 Motor Vehicles Motor Vehicles No. - - - - 1 4,000,000 - - Sub-Total 4 - Buildings, Motor Vehicles/Cycles 1 800,000 2 400,000 3 4,400,000 2 400,000 Grand Total 4,355,105 11,466,123 14,905,988 11,249,872 Dated the 2nd May, 2024. JULIUS ITUNGA, MR/5723150 Ag. Chief Executive Officer, Water Services Regulatory Board.