GAZETTE NOTICE NO. 10542

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 NARUWASCO 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 NARUWASCO that the approved tariffs for the four financial years, 2023/2024, 2024/2025, 2025/2026 and 2026/2027 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2023/2024 to 2026/2027 Customer Category Consumption Block in M³ Approved Tariff (KSh/M3) Domestic/Residential 1-6 88 7-20. 95 21-50 105 51-100 110 101-300 120 >300 140 Multi-Dwelling Units Per M3 95 Commercial/Industrial/Government/Institutions 1-50 95 51-100 125 101-300 145 >300 155 Schools, Universities and Colleges 1-600 95 601 - 1200. 100 >1200 105 Bulk Water Supply Per M3 35 Water Kiosks Per M3 50 Customers with non- functional meters shall be billed based on the average of the last three months’ bills. 1.2 Sewerage Tariff Structure for the period 2023/2024 to 2026/2027 (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. (b) Consumers without a Water Connection Sewerage consumers without a water connection shall be charged as follows: • Single Dwelling Domestic unit: KSh. 300 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. 1.3 Indexation of the Approved Tariff The utility’ 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, 2024. 1.5. 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 11th August, 2023 THE KENYA GAZETTE Item/ Service Charge (KSh.) Heavy industries more than 300 m3 100,000 Water Kiosks 5,000 *Customers with only a sewerage 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) 95 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 NARUWASCO during the tariff period: Expenditure Item 2023/2024 2024/2025 2025/2026 2026/2027 Operations 290,982,672 308,470,001 327,154,308 347,179,615 Maintenance 18,700,000 20,570,000 22,627,000 24,889,700 Regulatory Levy (WASREB) 19,880,180 21,868,197 24,055,017 26,460,519 Total O and M Costs 329,562,853 350,908,197 373,836,324 398,529,834 Investment Costs 79,128,771 74,954,525 60,776,331 41,648,090 Debt Repayment 10,120,875 9,943,727 9,766,579 9,589,430 Total Costs 418,812,499 435,806,449 444,379,234 449,767,354 Total Billing (Kshs) 443,645,883 462,192,011 480,765,407 499,367,434 Collection Efficiency (%) 95% 95% 95% 95% Projected Revenue 421,463,589 439,082,410 456,727,137 474,399,062 O and M Cost Coverage 128% 125% 122% 119% Total Cost Coverage 101% 101% 103% 105% 3.0 Conditions attached to the tariff approval. The conditions attached to this approval which shall form part of the license conditions of Nakuru Rural Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff. Target 2023/2024 2024/2025 2025/2026 2026/2027 Water Coverage (%) 79% 81% 83% 85% Water Quality Standards (%) 100% Compliance with Standards Personnel Expenditure as % of O and M 44% 43% 43% 42% Non-Revenue Water 52% 50% 48% 46% Hours of Supply (Hrs.) 19.5 20.5 21.5 22.5 Staff per 1000 connections 6 6 5 5 Maintenance Expenditure as % of O and M 6% 6% 6% 6% Metering ratio (%) 100% 100% 100% 100% Collection Efficiency (%) 95% 95% 95% 95% Resale at Kiosk KSh. 2.00 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 approved tariff. 3450 3450 (iii) Surplus: The surpluses projected to be realised shall be used on priority infrastructure projects identified by NARUWASCO and approved by WASREB. (iv) Customer re- categorisation for billing: NARUWASSCO will separate individual domestic accounts from Multi-Dwelling Units (MDU) accounts and bill as per the approved tariff. (v) Creation of distinct water and sewerage cost centres: NARUWASCO will create separate water and sewerage cost centres and maintains distinct record of operations of the two centres. (vi) Repayment of Loans: NARUWASCO shall remit monthly loan repayments to Central Rift Water Works Development Agency (CRWWDA) as detailed below: - 2023/2024 2024/2025 2025/2026 2026/2027 Loan Repayment Amount (Kshs.) 10,120,876 9,943,727 9,766,579 9,589,431 Evidence of loan repayment to CRVWWDA shall be submitted to WASREB by the 10th day of the following month. (vii) Reporting: The utility shall submit to WASREB a quarterly tariff performance report in the prescribed format. WASREB will carry out tariff implementation 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 No. Investment Total Cost 2023-2024 2024-2025 2025-2026 2026-2027 1 East Gate Water Supply Project 54,038,093 54,038,093 2 Olenguruone Water Supply Project 42,776,331 37,000,000 5,776,331 3 Subukia Water Supply Project 41,357,896 30,000,000 11,357,896 4 Keringet Water Supply Project 37,073,021 15,000,000 22,073,021 5 Sinendet Water Supply Project 28,217,173 10,000,000 10,000,000 8,217,173.00 6 Haraka Water Supply Project 53,045,203 25,090,678 27,954,525 Total Investment costs 79,128,771 74,954,525 60,776,331 41,648,090 JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5166662 Water Services Regulatory Board.