GAZETTE NOTICE NO. 10546

APPROVED TARIFF STRUCTURE FOR THE PERIOD 2023/2024 TO 2025/2026 Karuri Water and Sanitation Company applied to the Water Services Regulatory Board (WASREB) for a review of tariffs for water services, for the period 2023/2024 to 2025/2026 as per section 72 (1) (b) of the Water Act, 2016. Public consultation on the application was carried out 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 11th August, 2023 THE KENYA GAZETTE available data, WASREB has determined an upward tariff review for the Water Service Provider (WSP) 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 the WSP that the approved tariffs for the three financial years, 2023/2024, 2024/2025 and 2025/2026 shall be as follows: 2.0 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 90 7-20. 110 21-50 120 51-100 125 101-300 130 >300 140 Multi-Dwelling Units/Gated Communities Yard Taps (Less than 20 shared connections) Commercial/industrial/Gover- nment/Institutions 1-50 120 51-100 125 101-300 135 >300 145 Schools, Universities and Colleges 1-600 110 601 - 1200. 120 >1200 125 Bulk Water Supply Per M3 90 Water Kiosks Per M3 35 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 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 Item/ Service Charge (KSh.) 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) 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 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 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 the WSP during the tariff period: Expenditure Item 2023/2024 2024/2025 2025/2026 Operations 137131904 144118596 150632926 3458 3458 Maintenance 12,355,300 14,210,000 16,090,000 Regulatory Levy (WASREB) 8,248,433 11,695,796 17,543,694 Operation and Maintenance (OandM) 157,735,637 170,024,392 184,266,619 Investments 12,897,000 13,054,000 10,430,000 Total Costs 170,632,637 183,078,392 194,696,619 Total Billing (KSh.) 178,220,363 197,110,911 212,049,015 Collection Efficiency (%) 95% 95% 95% Projected Revenue 169,309,345 187,255,365 201,446,565 O and M Cost Coverage 107% 110% 109% Total Cost Coverage 99% 102% 103% 3.0 Conditions Attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions of Karuri Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff. Target 2023/2024 2024/2025 2025/2026 Water Coverage (%) 56% 58% 60% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O and M 24% 23% 22% Non-Revenue Water 34% 31% 28% Hours of Supply (Hrs.) 15 16 17 Staff per 1000 connections <6 <6 <6 Maintenance Expenditure as % of O and M 8% 9% 9% Metering ratio (%) 100% 100% 100% Collection Efficiency (%) 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 WSP 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 the WSP and Approved by WASREB. (iv) Customer re- categorisation for billing: the WSP will separate individual domestic accounts from Multi-Dwelling Units (MDU) accounts and Yard Taps and bill as per the approved tariff. (v) Creation of distinct water and sewerage cost centres: the WSP will create separate water and sewerage cost centres and maintain distinct record of operations of the two centres. (vi) Reporting: The WSP 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. (vii) Investments: The WSP shall undertake the investments in Annex 1 and submit quarterly progress reports. Annex 1 INVESTMENTS BY KARURI WATER AND SANITATION COMPANY LIMITED (2023/2024 – 2025/2026) Investment Category Item Description 2023/24 2024/25 2025/26 A. Plant and Equipment Motor 22KW 350,000 - - Motor 7.5 KW 180,000 - - Draw Pipes 81,000 - - Cable 4 core 10mm 486,000 - - Control Panel 180,000 - - Complete Pump Set-18.5KW 1,200,000 - - Motors 1,050,000 - - Panel Accessories 100,000 - - Capacitor Banks 225,000 - - Investment Category Item Description 2023/24 2024/25 2025/26 Panel Accessories - 150,000 - AVS - 100,000 - Motors - 1,050,000 - Assorted Cables - 900,000 - Pump Set - - 1,500,000 Motors - - 750,000 Panel Accessories - - 200,000 Sub-Totals 3,852,000 2,200,000 2,450,000 B. Metering Single jet co- polymer 15mm R200 2,400,000 - - Single Jet Copolymer 15mm meters - 2,400,000 - Sub-Totals 2,400,000 2,400,000 - C. NRW Reduction Plan D.M.As ( 63mm- 90mm) Smart metering 1,200,000 - - D.M.As ( 63mm- 90mm) Smart metering 1,200,000 Smart Meters (DN 63-110MM - - 1,200,000 Sub-Totals 1,200,000 1,200,000 1,200,000 D. Water System Rehabilitati- on Rehabilitation of a 2Km pipeline DN 110, PN 12.5 in Mucatha 2,600,000 - - Rehabilitation of a 3Km 90mm pipeline in Karuri and Mucatha areas - 3,900,000 - Rehabilitation of a 2Km 110mm pipeline in Mucatha areas - - 3,000,000 Rehabilitation of a 3Km 63mm pipeline in Kimuga areas - - 3,300,000 Sub-Totals 2,600,000 3,900,000 6,300,000 E.Motorcy- cles 420,000 - - - - 480,000 Sub-Totals 420,000 - 480,000 F.Compu- ters and Office Equipment Laptops 750,000 - - Printer 100,000 - - UPS 22,500 - - Desktop 300,000 - - Laptops 600,000 - - Desktops 300,000 - - UPS 22,500 - - UPS 1KVA 15,000 - - Laptops - 450,000 - Sub-Totals 2,110,000 450,000 - G. Furniture and fixtures Office Chairs 150,000 - - Office Tables 100,000 - - Cabinets 65,000 - - Office Chairs - 150,000 - Office Tables - 50,000 - Board Chairs - 204,000 - Sub-Totals 315,000 404,000 - H. Storage Facilities - 2,500,000 - Sub-Totals - 2,500,000 - Grand Total 12,897,000 13,054,000 10,430,000 JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5166662 Water Services Regulatory Board. 11th August, 2023 THE KENYA GAZETTE