GAZETTE NOTICE NO. 12828

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 NAROWASCO 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 NAROWASCO that the approved tariffs for the three financial years 2024/2025, 2025/2026, and 2026/2027 shall be as follows: 4th October, 2024 THE KENYA GAZETTE 8 Approved Tariff Structure for the period 2024/2025 to 2026/2027 1.1 Water Tariff Consumer Categories Consumption Block Approved Tariff (M3) (KSh./M3) Domestic/Residential 1-6 90 7-20 100 21-50 110 51-100 115 101-300 125 >300 130 Multi-Dwelling Units Flat Rate 100 Commercial /Industrial/ Government/Institutions 1-50 100 51-100 115 101-300 120 >300 135 Public Schools/Colleges/Universities 1-600 90 601-1200 100 >1200M3 110 Unique Consumer Categories – Water Kiosks Per M3 70 Customers with non-functional meters shall be billed based on the average of the last three months’ bill. 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 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 15000 Hotel class “C” and ‘D’ less than 150 m3 18000 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 ls 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 and 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) 100 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 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 THE KENYA GAZETTE 4th October, 2024 Item/ Service Charge (KSh.) 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,– Domestic (Fraud) 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 & 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 Summary Below is the summary of the recommended cost structure that makes up the total costs to be incurred by NAROWASCO during the tariff period: Expenditure Item 2022/23 (KSh.) 2023/24 (KSh.) 2024/25 (KSh.) 2025/26 (KSh.) 2026/27 (KSh.) Operations 12,562,365 16,393,793 19,174,935 20,388,316 21,842,523 Maintenance 2,771,857 4,800,000 5,500,000 6,000,000 6,000,000 Regulatory Levy 754,584 681,970 1,174,105 1,253,562 1,328,742 Total O&M Costs 16,088,806 21,875,762 25,849,040 27,641,879 29,171,265 Investment Costs - - 1,412,000 1,750,000 2,400,000 Total Costs 16,088,806 21,875,762 27,261,040 29,391,879 31,571,265 Total Billing KShs) 14,180,935 17,049,244 29,352,631 31,339,059 33,218,547 Collection Efficiency (%) 93% 95% 95% 95% 95% Projected Revenue 14,180,935 17,049,244 27,884,999 29,772,106 31,557,620 Total Cost Coverage 88% 78% 102% 101% 100% 3.0 Conditions attached to the tariff approval The conditions attached to this approval which shall form part of the license conditions of NAROWASCO are: (i) Service Delivery Conditions attached to the Tariff Service Delivery Conditions Target 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 Water Coverage (%) 81% 82% 83% 84% 85% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O&M 43% 39% 36% 36% 36% Maintenance Expenditure as % of O&M 17% 22% 21% 22% 21% Investment Expenditure as a % of Total Expenditure 0% 0% 5% 6% 8% Non-Revenue Water 28% 27% 26% 26% 25% Hours of Supply (Hrs.) 22 23 24 24 24 Staff per 1000 connections 10 9 9 9 9 Metering ratio (%) 100% 100% 100% 100% 100% Resale at Kiosk KSh. 5.00 per 20l Jerry Can (i) Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. (ii) Surpluses: The surpluses realised during the tariff period shall be used to implement priority service delivery capital projects approved by WASREB. (iii) Reporting: The utility shall submit quarterly performance reports to WASREB in the prescribed format. (iv) Catchment Protection: The utility shall undertake measures to conserve/ protect the catchment areas of their water source as part of Corporate Social Responsibility. (v) Investments: The utility shall undertake the investments in Table 1 within the tariff period: Table 1: Investments INVESTMENTS FUNDED FROM INTERNALLY GENERATED FUNDS 2024-2025 Targetted Investment Project Area Guide Size Sample Descriptions Unit Unit Cost Quantity Total Cost (KSh.) A. Regional Master meters Town Zone Township Scheme 150MM Installation of Master Meters No 48,000 3 114,000 Town A 150MM No 38,000 1 38,000 Town B 80MM No 19,000 1 19,000 Town C 80MM No 19,000 2 38,000 Police Area 50MM No 15,000 2 30,000 Buruburu 50MM No 15,000 1 15,000 Issaco Issaco zone 100mm No 25,000 1 25,000 Issaco B 80MM No 19,000 1 19,000 Solio Solio 150MM No 38,000 1 38,000 Huruma 80MM No 19,000 1 19,000 Eden 80MM No 19,000 1 19,000 4th October, 2024 THE KENYA GAZETTE Jogoo 50MM No 15,000 1 15,000 Kandara Kandara 150MM No 38,000 2 76,000 Ngutik Ngutik Zone 150MM No 38,000 1 38,000 St Stephen 80MM No 19,000 1 19,000 Nelion 50MM No 15,000 1 15,000 Olive 50MM No 15,000 1 15,000 Full Gospel 50MM No 15,000 1 15,000 J17 50MM No 15,000 1 15,000 Slaughter 50MM No 15,000 1 15,000 Mureru 50MM No 15,000 1 15,000 D. Rehabilitation of Service Lines St Stephen Line Kandara upper line 4,000m 63mm,50mm and 32mm hdpe Pn 12.5m 500,000 300,000 Total 1,412,000 Targetted Investment Project Area Size Sample Descriptions Quantity Unit Cost Total Cost (KSh.) Purchase of Water meter for replacement Township and Kandara/Ngutik Scheme 15mm Cold water meter volumetric multijet(Plastic) 200 2000 400,000 Extension of Distribution Lines Township and Kandara/Ngutik Scheme 10,000m 63mm,50mm and 32mm hdpe Pn 12.5m Lumpsum - 450,000 Rehabilitation of Township scheme distribution Lines Township Scheme - FY25/26 4000m 63mm,50mm and 32mm hdpe Pn 12.5m Lumpsum - 230,000 Purchase of NRW Reduction Equipment Township and Kandara/Ngutik Scheme Listening Rod, ultra-sonic flow meter Lumpsum - 670,000 Total - 1,750,000 Year 2026/2027 Targetted Investment Project Area Size Sample Descriptions Quantity Unit Cost Total Cost (KSh.) Purchase of Water meter for replacement Township and Kandara/Ngutik Scheme 15mm Cold water meter volumetric multijet (Plastic) 500 2000 1,000,000 Rehabilitation of Township scheme distribution Lines Kandara/Ngutik Scheme - FY 26/27 4000m 63mm, 50mm and 32mm hdpe Pn 12.5m Lumpsum - 1,000,000 Purchase of NRW Reduction Equipment Township and Kandara/Ngutik Scheme Listening Rod, ultra-sonic flow meter Lumpsum - Procurement of GIS meter reading Software 400,000 Total - 2,400,000 Dated the 6th September, 2024. RICHARD K. CHERUIYOT, MR/6547681 Ag. Chief Executive Officer, Water Service Regulatory Board.