GAZETTE NOTICE NO. 10543

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 MUSWASCO 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 MUSWASCO 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 1-6 107 7-20. 110 21-50 115 51-100 120 101-300 125 >300 135 Multi-Dwelling Units Per M3 110 Commercial/Industrial/ Government/ Institutions 1-50 110 51-100 120 101-300 130 >300 140 Schools, Universities and Colleges 1-600 110 601 - 1200. 112 >1200 115 Bulk Water Supply Per M3 65 Bowsing Points Per M3 110 Water Kiosks Per M3 35 11th August, 2023 THE KENYA GAZETTE Customers with non- functional meter shall be billed based on the average of the last three months’ bills before the disconnection. 1.2 Sewerage Tariff Structure for the Period 2023/2024 to 2025/2026 (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 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) 80 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 MUSWASCO during the tariff period: 3452 3452 Expenditure Item 2023/2024 2024/2025 2025/2026 Operations 275,105,524 286,704,483 303,317,196 Maintenance 42,385,196 43,885,346 45,457,297 Regulatory Levy (WASREB) 20,101,264 28,996,085 32,011,795 Investments 37,007,762 52,661,011 119,721,071 Debt Repayment 42,423,249 150,123,870 149,077,523 Total Costs 417,022,995 562,370,794 649,584,882 Total Billing (KSh.) 474,431,398 614,694,716 688,289,714 Collection Efficiency (%) 88% 92% 95% Projected Revenue 417,499,630 565,519,139 653,875,229 Total Cost Coverage (%) 100% 101% 101% 3.0 Conditions Attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions of Murang’a South Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff. Target 2023/2024 2024/2025 2025/2026 Water Coverage (%) 75% 77% 79% Water Quality Sstandards (%) 100% Compliance with Standards Personnel Expenditure as % of O and M 44% 44% 43% Non-Revenue Water 42% 39% 36% Hours of Supply (Hrs.) 18 19 20 Staff per 1000 connections 5 5 5 Metering ratio (%) 100% 100% 100% Collection Efficiency (%) 88% 92% 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 tariff. (iii) Surplus: The surpluses projected to be realised shall be used on priority infrastructure projects identified by MUSWASCO and Approved by WASREB. (iv) Customer re-categorisation for billing: MUSWASCO 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: upon operationalization of sewerage services, MUSWASCO will create separate water and sewerage cost centres and maintains distinct record of operations of the two. (vi) Repayment of Loans: MUSWASCO shall remit monthly loan repayments as detailed below: - 2024/2025 2025/2026 Amount (KSh.) 34,406,875 34,406,875 Evidence of loan repayment to Tana Water Works Development Agency (TWWDA) 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 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 S/No. Intervention 2022/2023 2023/2024 2024/2025 2025/2026 1 Ultrasonic and Water Meters for key and major Consumers 253,537 1,094,334 2 Bulk Water Meters (Kandara, Kenol, Kigumo, Maragua, Sabasaba, Ruchu, Kangari ) 885,372 1,160,985 2,100,000 3 Motorcycles 665,534 2,157,315 2,509,336 4 Meters to replace Key domestic consumers (Single jet) 495,436 5 Rehabilitation Works a) Kinyona Sedimentation Tank Rehabilitation Works 269,373 b) Ichichi Treatment Works Rehabilitation Works 636,131 c) Borehole Rehabilitation Works 3,787,027 6 Non - Revenue Water (NRW) Reduction Plan 3,478,300 10,607,800 9,421,300 5,443,550 7 Extension of Water Pipelines a) Kinyona Ward 7,790,158 b) Kigumo Ward 8,513,292 c) Ruchu Ward 37,442,979 8 Network Rehabilitation a) Construction and rehabilitation of Sabasaba Water pipeline infrastructure project 13,624,441 b) Kinyona, Ichichi, Maragua, Sabasaba Transmission and Distribution Systems 5,716,885 c) Rehabilitation of Kenol–Marua Road and construction of elevated tank 10,000,000 15,683,292 d) Distribution Line to improve flows to Kiranga-Muruka areas 13,389,911 e) Ithiru Ward - Gathugu water distribution pipeline 4,355,580 8.1 Rehabilitation Works for Exposed and landslide affected sections a) Gatitu Line 5,631,120 b) Kamicee Line 6,041,831 11th August, 2023 THE KENYA GAZETTE S/No. Intervention 2022/2023 2023/2024 2024/2025 2025/2026 c) Mutunguru Line 3,090,474 d) Irati Intake Mainline 10,512,282 e) Kiiriciungu Mainline 1,457,280 9 Sanitation Improvements a) Sewer Improvement in Kenol 230,481 1,474,180 b) Murang'a South Ablution Block Kenol 724,500 10 Construction and Improvement of Buildings and Offices a) Construction of Maria-ini office 546,990 b) Construction of Insitu Water Kiosk– Muruka Shopping Centre 557,339 c) Supply and install 4000 ltrs water tanks to kiosks without storage tanks 94,734 d) MUSWASCO Kandara Offices Car Park – Phase 1 93,622 11 Technical Equipment; - (Geomax total station; Adept Ultrasonic Flowmeter; Butt Fusion Machine; Pipe wrenches; Insertion Flow Meters 770,435 2,021,812 3,592,491 12 Pro-poor Initiatives 253,537 1,100,780 1,292,984 1,301,368 13 ICT Investments - Control Panel Generator 2,109,036 14 Intake Desilting and Improvements a) Kinyona Treatment worksand Desilting 2,203,606 b) Ichichi Clear Water tank andDesilting and weir expansion 1,623,673 c) Kiriciungu Desilting of intake and making good of storage area 425,529 15 Office Furniture 70,000 70,000 70,000 16 Control Chambers 428,559 2,340,120 1,764,584 Total Expenditure 3,985,374 37,007,762 52,661,011 119,721,071 JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5166662 Water Services Regulatory Board.