GAZETTE NOTICE NO. 10539

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 KWAWASCO 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 KWAWASCO that the approved tariffs for the three financial years, 2023/2024, 2024/2025 and 2025/2026 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2023/2024 to 2025/2026 Customer Category Consumption Block in M³ Approved Tariff (KSh/M3) Domestic/Residential 1-6 98 7-20. 105 21-50 115 51-100 120 101-300 135 >300 175 Multi- Dwelling Units Per M3 105 Commercial/Industrial/ Government/ Institutions 1-50 105 51-100 130 101-300 155 >300 180 Schools, Universities and Colleges 1-600 100 601 - 1200 105 >1200 110 Bowsing Points– Per M3 Per M3 150 Community Water Projects Per M3 105 Water Kiosks Per M3 50 11th August, 2023 THE KENYA GAZETTE Customers with non- functional meters shall be billed based on the average of the last three months’ bills. 1.2 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, 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 deposit 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) 150 Replacement of stolen or damaged meters 100% of the market cost of the meter 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 approved cost structure that makes up the total costs to be incurred by KWAWASCO during the tariff period: Expenditure Item 2023/2024 2024/2025 2025/2026 Operations 302,159,174 307,057,844 312,234,694 Maintenance 7,067,588 7,420,968 7,792,016 Regulatory Levy (WASREB) 8,780,094 9,219,099 9,680,054 Investments 2,000,000 9,327,350 19,945,200 Debt Repayment 15,155,715 15,155,715 15,155,715 Total Costs 335,162,572 348,180,975 364,807,678 Total Billing (Kshs.) 338,434,074 358,231,800 395,789,120 Collection Efficiency (%) 95% 95% 95% Projected Revenue 321,512,370 340,320,210 375,999,664 Subsidy 13,650,201 7,860,765 - 3442 3442 Expenditure Item 2023/2024 2024/2025 2025/2026 Projected Revenue with subsidy 335,162,572 348,180,975 375,999,664 OandM Cost Coverage (With subsidy) 105% 108% 114% Total Cost Coverage (With subsidy) 100% 100% 103% 3.0 Conditions Attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions of Kwale Water and Sewerage Company are: (i) Service Delivery Conditions attached to the Tariff. Target 2023/2024 2024/2025 2025/2026 Water Coverage (%) 33% 34% 35% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O and M 21% 21% 22% Non-Revenue Water 47% 45% 43% Hours of Supply (Hrs.) 7 9 11 Staff per 1000 connections 9 8 7 Metering ratio (%) 100% 100% 100% Collection Efficiency (%) 95% 95% 95% Resale at Kiosk KSh. 3.00 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 used on priority infrastructure projects identified by KWAWASCO and Approved by WASREB. (iv) Customer re-categorisation for billing: KWAWASCO will separate individual domestic accounts from Multi-Dwelling Units (MDU) accounts and bill as per the approved tariff. (v) County Subsidy: The County Government of Kwale will support the WSP with the following subsidy for purchase of bulk water supply: 2023/2024 2024/2025 2025/2026 Subsidy Amount (KSh.) 13,650,201 7,860,765 - (vi) Repayment of Loans: KWAWASCO shall remit monthly loan repayments as detailed below: - 2023/2024 2024/2025 2025/2026 Amount (KSh.) 15,155,715 15,155,715 15,155,715 Evidence of loan repayment to Coast Water Works Development Agency (CWWDA) shall be submitted to WASREB monthly by the 10th day of the following month. (vii) Reporting: The utility shall submit to WASREB a quarterly tariff performance report in the format provided. WASREB will carry out tariff implantation review at the end of each year of implementation. (viii) Investments: The utility shall undertake the investments in Annex 1 and submit quarterly progress reports. Annex 1 INVESTMENT SUMMARY FOR KWALE WATER AND SEWERAGE WATER COMPANY LIMITED Targeted Outcome Intervention 2023/2024 2024/2025 2025/2026 Increased Water Coverage Meters and Fittings - New Connections 2,000,000 2,500,000 4,000,000 Sub-Total _New Connections 2,000,000 2,500,000 4,000,000 Non - Revenue Water Reduction DMA Bulk Meters, Valves and Accessories (For the study DMA Zone and for replacement) Volumetric - 1,000,000 3,000,000 Replacement of stalled and very old meters (above seven years) 2,500,000 4,000,000 Sub - Total _ NRW Reduction - 3,500,000 7,000,000 ICT Investments Headquarters Server Room 4,000,000 Sub - Total ICT Investments - 4,000,000 Network Rehabilitation Maweni Water Supply Line Extensions 3,327,350 - Hill Park Supply Line Extension - 4,945,200 Sub - Total _ Network Rehabilitation 3,327,350 4,945,200 Total _ Investments 2,000,000 9,327,350 19,945,200 JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5166662 Water Services Regulatory Board. 11th August, 2023 THE KENYA GAZETTE