GAZETTE NOTICE NO. 1307

in accordance with the requirements of section 139 of the Water Act 2016. 3rd February, 2023 THE KENYA GAZETTE 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 KIRIWASCO 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 KIRIWASCO that the approved tariffs for the three financial years 2022/23, 2023/24, and 2024/25 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2022/2023 to 2024/2025 Customer Category Approved Domestic/Residential Consumption Block in M³ Tariff (KSh/M3) 1-6 43 7-20. 60 21-50 80 51-100 95 101-300 115 >300 135 Multi – Dwelling Units/ Gated Communities Flat Rate 60 Commercial/industrial 1-50 80 51-100 95 101-300 115 >300 135 Government 1-50 80 51-100 95 101-300 115 >300 135 Schools, Universities and Colleges 1-600 55 601 - 1200. 70 >1200 95 Water Kiosks Per M3 35 1.2 Sewerage Tariff Structure for the period 2022/2022 to 2024/2025 (a) Consumers with a Water Connection 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. 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: • Domestic (Per Single dwelling unit): KSh. 350 per month • All other categories: 75% of the Volume of water consumed as per the metered source at the rates specified (in 1.1) above. Note: All disconnected accounts (water only, sewer only and water + sewer shall be charged based on the average of the last three months’ charges before the disconnection. 1.3 Miscellaneous Charges These shall be as follows: 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, restaurants less than 15 m3 4000 Bar, restaurants more than 15 m3 6,000 Item/ Service Charge (KSh.) Hotel class “A” and “B” less than 150 m3 12,000 Hotel class “A” and “B” more than 150 m3 Hotel class “C” and ‘D’ less than 150 m3 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 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 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 Tanker – 8000, 16,000 litres 2,500, 5,000 respectively per tanker within KIRIWASCO area for all consumers Sale of water Per M3 at bowsing point (own tanker) 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 For cutting off the supply at the request of the consumer 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 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 456 456 Item/ Service Charge (KSh.) 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) 10,000 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 KIRIWASCO during the tariff period: Expenditure Item Base Year 2020/21 2021/22 2022/23 2023/24 2024/25 Operations 125,680,649 135,911,95 138,424,323 143,588,10 155,891,198 Maintenanc e 16,904,460 14,778,550 23,894,473 24,942,119 26,875,837 Regulatory Levy 6,944,616 5,500,000 7,013,165 7,574,219 8,180,156 Other Levies 5,448,522 4,500,000 3,413,913 3,348,000 3,515,400 Minor Investments 6,594,293 14,590,800 20,542,780 30,227,495 23,780,959 Asset Renewal 3,000,000 3,000,000 - - - Total Costs 161,572,541 175,281,30 193,288,654 209,679,93 218,243,550 Total Billing (KShs.) 167,767,070 180,883,76 198,143,996 248,348,00 271,917,179 Collection Efficiency (%) 94% 91% 92% 93% 94% Projected Revenue 156,966,684 164,581,00 182,292,477 230,963,64 255,602,148 Total Cost Coverage 97% 94% 94% 110% 117% 2.0 Conditions attached to the Tariff Approval. The conditions attached to this approval which shall form part of the license conditions of Kirinyaga Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff. Target Base Year 2020/21 2021/2022 2022/2023 2023/2024 2024/2025 Water Coverage (%) 56% 59% 62% 65% 68% Water quality standards (%) 93% 100% Compliance with Water Quality Standards Personnel Expenditure as % of O&M 57% 52% 47% 42% 37% Non-Revenue Water (%) 55% 50% 45% 40% 35% Hours of Supply (Hrs) 18 19 20 21 22 Staff per 1000 connections 6 5 5 5 5 Metering ratio (%) 99% 100% 100% 100% 100% Collection Efficiency (%) 86% 88% 90% 92% 94% Target Base Year 2020/21 2021/2022 2022/2023 2023/2024 2024/2025 Resale at Kiosk Regulate resale by kiosk vendors at KSh. 2 per 20- litres. Tariffs at kiosks must be displayed at strategic points for public awareness (ii) Annual budgets: The utility shall adhere to the budgetary levels set in the tariff. (iii) Surpluses: The surpluses projected to be realised shall be set aside to implement priority service delivery capital projects. KIRIWASCO shall be required at the end of every financial year to identify the priority project to be implemented and obtain approval from WASREB. (iv) Catchment Protection: The utility shall undertake measures to conserve/ protect the catchment areas of their source of water as part of Corporate Social Responsibility. (v) Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided. (vi) Creation of distinct water and sewer cost centres: KIRIWASCO will ensure it creates separate water and sewer cost centres and maintains distinct record of operations of the two centres. (vii) Tariff Assessment: WASREB will carry out a tariff implementation review within the first 12 months of approval and implementation during which a joint assessment with the utility on the trend in Billing (Ksh) shall be carried out and status of implementation of the tariff evaluated. (viii) Customer re- categorisation for billing: KIRIWASCO will separate individual domestic accounts from Multi-Dwelling Units accounts and migrate consumer billing data within the first 3 months of tariff approval and implementation of the tariff. The detailed report should be submitted to WASREB. Pursuant to this, the WSP shall bill all MDU / Gated communities at the recommended MDU/ Gated Community tariff for Water, Sewerage and other Miscellaneous charges specified in this tariff. (ix) 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. (x) Investments: The utility shall undertake the investments in Annex 1 Annex 1— INVESTMENTS SUMMARY OF CAPITAL INVESTMENTS TO BE CARRIED OUT BY KIRINYAGA WATER AND SANITATION COMPANY LIMITED FOR THE PERIOD 2022/23 – 2024/25 Proposed Investment 2022/23 2023/24 2024/25 Water Coverage Procurement of Meters and installation of DN 15mm class C consumer meters for new connections in Ndia, Kerugoya, Sagana and Wanguru schemes , and replacement of faulty and aged meters in Kerugoya Town Zone - - 25,952,645 Service line extensions (Kifco, Kiangunyi, Kingati Service, South Ngariama main, Mwea Scheme, Kiandegwa main and Service line extensions, Mibucasa main and Service line extensions) 4,271,580 4,403,410 5,465,400 Provision of materials for 3,658,500 3,658,500 3,658,500 3rd February, 2023 THE KENYA GAZETTE new connections NRW Reduction Procurement of meter reading smart phones (28 No) - 120,000 120,000 Procurement of Billing System - 3,000,000 3,000,000 NRW management (Procurement and installation of DN 150mm, PN 16 master meters in Rundu, Kianjogu,githioro,Sagana, Kutus and Kagio DMAs ;DN 150mm, PN 16 master meters in Gacharu Kamuthanga,Kaitheri,Ruir u ,Getuya,Mutithi,Gathambi , Baricho and Gakindu DMAs; DN 100 PN 16 master meters for Police line (2) and Kerugoya Market line DMAs. 1,491,600 1,542,600 1,144,200 Purchase of Movable and Immovable Assets Procurement of Computers, Printers and Accessories 1,540,000 780,000 520,000 Procurement of motorbikes and motor vehicle 741,600 6,741,600 741,600 Purchase of Office Furniture and Fittings - 630,000 630,000 Procure lab equipment 739,500 - - Totals 12,442,780 20,876,110 41,232,345 JULIUS K. ITUNGA, MR/4245732 Ag. Chief Executive Officer.