GAZETTE NOTICE NO. 4161

under the powers granted by section 72 (1) (b) and (2) of the Water Act, 2016, has approved the regular tariff adjustment for the area served by Lamu Water and Sewerage Company Limited (LAWASCO). Lamu Water and Sewerage Company Limited (LAWASCO) applied to the Water Services Regulatory Board (WASREB) for review of water services tariffs, for the period 2025/2026 to 2028/2029 as per section 72 (1) b of the Water Act 2016. Public consultation on the LAWASCO application was carried out in accordance with the requirements of section 139 of the Water Act 2016. Having considered the application, the written and oral submissions by all stakeholders and the current data, WASREB has determined that an upward tariff review is justified for LAWASCO to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions attached to the tariff. WASREB hereby gives a one-month notice from the date of this communication to all existing and potential customers of LAWASCO that the structure of approved tariffs for water services for the four financial years 2025/2026, 2026/2027, 2027/2028 and 2028/2029 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2025/2026 to 2028/2029 Consumer Categories Consumption Block (m3) Approved Tariff (KSh./m3) Domestic/Residential 1-6 160 7-20. 175 21-50 185 51-100 195 101-300 205 >300 215 Multi-Dwelling Units Flat Rate 180 Commercial/Industrial 1-50 185 51-100 195 101-300 205 >300 215 19th March, 2026 THE KENYA GAZETTE Consumer Categories Consumption Block (m3) Approved Tariff (KSh./m3) Schools, Universities and Colleges 1-600 195 601-1200 205 >1200M3 215 Water Kiosks Per M3 70 Customers with non-functional meters shall be billed based on the average of the last three months’ bills. 1.2 Indexation The utility’s 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 2027. 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 and restaurants less than 15 m3 4,000 Bar and restaurants more than 15 m3 6,000 Hotel class “A” and “B” less than 150 m3 12,000 Hotel class “A” and “B” more than 150 m3 15,000 Hotel class “C” and ‘D’ less than 150 m3 18,000 Hotel class “C” and ‘D’ more than 150 m3 20,000 Hospitals and Health centres more than 150 m3 20,000 Hospitals and Health centres less than 150 m3 12,000 Schools and other institutions more than 200 m3 20,000 Schools and other institutions less than 200 m3 10,000 Minor construction sites of more than 200 m3 15,000 Major construction sites more than 300 m3 50,000 Light industries less than 200 m3 30,000 Medium industries between 200 m3 and 300 m3 50,000 Heavy industries of more than 300 m3 100,000 Water Kiosks 5,000 Customers with only sewer connection are to be charged a deposit equivalent to a 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 and 16,000 litres 2,500 and 5,000 respectively per tanker within the WSP area for all consumers Sale of water per M3 at Bowsing Point (own tanker) 185 Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 Special meter reading under the customer’s request 500 Private sewer unblocking 2,500 Leak detection services 1,000 Printing of customer’s statement under own request 200 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 Penalties Illegal water connection, -Commercial, Industry, Construction (Fraud) 100,000 plus estimated consumption during the period of illegality Illegal water connection, (Fraud) – Domestic 30,000 plus estimated consumption during the period of the illegality Overcharging (fraud) at water kiosk 15,000 Self-reconnection after cut-off for non-payment 5,000 and billing to be backdated from the 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 Cost Structure 2.1 Cost Summary Below is the summary of the recommended cost structure that makes up the total costs to be incurred by LAWASCO during the tariff period: Expenditure Item 2024/25 2025/26 2026/27 2027/28 2028/29 Operations 33,253,465.00 36,613,341.04 37,141,581.87 37,699,780.17 38,323,015.77 Maintenance 3,865,251.00 4,058,513.55 4,180,268.96 4,305,677.03 4,434,847.34 Regulatory Levy 846,008.00 808,298.17 1,878,509.68 1,980,390.27 2,097,515.98 1230 1230 Expenditure Item 2024/25 2025/26 2026/27 2027/28 2028/29 Total O&M Costs 37,964,724.00 41,480,152.76 43,200,360.51 43,985,847.47 44,855,379.09 Investment Costs - - - - - Debt Repayment - - - - - Total Costs 37,964,724.00 41,480,152.76 43,200,360.51 43,985,847.47 44,855,379.09 Total Billing (KShs) 22,022,707.00 20,207,454.17 46,962,742.08 49,509,756.76 52,437,899.59 Collection Efficiency (%) 95% 95% 95% 95% 95% Projected Revenue - Without Subsidy 20,921,571.65 19,197,081.47 44,614,604.97 47,034,268.92 49,816,004.61 O&M Cost Coverage (%) - Without Subsidy 55% 46% 103% 107% 111% Total Cost Coverage (%)- Without Subsidy 55% 46% 103% 107% 111% 3.0 Conditions attached to the tariff approval. The conditions attached to this approval which shall form part of the license conditions of LAWASCO are: 3.1 Service Delivery Conditions attached to the Tariff SERVICE DELIVERY CONDITIONS Target 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 Water Coverage (%) 74% 74% 75% 76% 77% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O&M 51% 47% 45% 45% 45% Non-Revenue Water 54% 51% 49% 47% 45% Hours of Supply (Hrs.) 12 13 14 15 16 Staff per 1000 connections 24 23 21 17 15 Metering ratio (%) 100% 100% 100% 100% 100% Collection Efficiency (%) 95% 95% 95% 95% 95% Resale at Kiosk KSh. 2.00 per 20l Jerry Can KSh. 5.00 per 20l Jerry Can Other Conditions 3.2 Annual budgets: -The WSP shall adhere to the budgetary levels set in the tariff. 3.3 Surpluses: -The surpluses realised during the tariff period shall ONLY be used to implement priority service delivery capital projects approved by WASREB 3.4 Reporting: -The utility shall submit to WASREB a quarterly performance report in the format provided 3.5 Regulatory Levy: -The utility is to pay a monthly regulatory levy based on 4% of turnover, which is inclusive of billing for other services and interest income earned. 3.6 Operational Subsidy: - For the period 2026/2027 to 2028/2029, the County Government of Lamu is required to continue to provide subsidies to Lamu Water and Sewerage Co. to be directed towards payment of production electricity and Salaries for seconded staff and investments as shown in the table below: Expenditure 2026/2027(KSh.) 2027/2028(KSh.) 2028/2029(KSh.) Seconded Staff 7,452,390 7,601,437 7,753,466 Electricity 14,286,039 15,714,643 17,286,107 Investment 9,163,540 9,906,830 10,309,600 Total 30,901,969 33,222,910 35,349,173 3.7 Investments: -The County Government of Lamu to undertake the investments in Apendix 1 below on behalf of the company: 4.0 Penalty notice 4.1 Take note that failure of an Accounting Officer to administer this tariff and the conditions attached to it is an offence subject to section 196 (2) of the Public Finance Management Act 2012, 117 (1) (aa) of the County Governments Act 2012, Sections 147 and 158 of the Water Act 2016, and Regulations 46 (1), 101 and 105 of the Water Services Regulations 2025. 4.2 Failure to comply with the tariff and conditions attached to it amounts to a breach of licence conditions and shall attract sanctions pursuant to section 92 of the Water Act 2016, including: (i) Payment of a penalty (ii) Suspension or cancellation of the licence (iii)Placement of the utility under Special Regulatory Regime (iv) Prosecution. Appendix 1: Investments through subsidy from the County Government of Lamu FY 2026-2027 Targetted Investment Project Area Guide Size Sample Descriptions Unit Unit Cost Quantity Project Cost (KSh.) A. Metering Consumer Meters To ensure all stopped Meters are replaced and provide for the new water connections. DN15 ¾” Cold Water Consumer meters - dry velocity type (where water does not come into contact with counter/dial), preferably Kent or Zenner No 4,200 400 1,680,000 Master Meters DN50 Cold Water Master meters - dry velocity type (where water does not come into contact with counter/dial) No 55,000 4 220,000 19th March, 2026 THE KENYA GAZETTE Targetted Investment Project Area Guide Size Sample Descriptions Unit Unit Cost Quantity Project Cost (KSh.) DN90 Cold Water Master meters - dry velocity type(where water does not come into contact with counter/dial) No 65,000 2 130,000 DN100 Cold Water Master meters - dry velocity type (where water does not come into contact with counter/dial) No 85,000 3 255,000 DN150 Cold Water Master meters - dry velocity type (where water does not come into contact with counter/dial) No 155,000 2 310,000 B. Capital Works Billing system and accessories Migrate from manual to digital system Software Allow programming, supply and installation of a water billing system Ls 4,160,000 1 4,160,000 C. Treatment works Laboratory Equipment and Reagents To ensure water quality test is carried out as per WASREB regulation Assorted items to be used for carrying out water analysis Procurement of Laboratory Equipment’s and Reagents necessary for day-to-day water quality analysis Ls 1,152,190 1 1,152,190 D. Water system extension Pipeline extension To provide water access at Mokowe DTF-50 Site DN 63mm, 1,500 metres PVC Pipeline Construction of 1,500 metres PVC Pipeline for Mokowe DTF-50 Site and its environs Ls 1,256,350 1 1,256,350 Sub -Total 9,163,540 FY 2027-2028 A. Water system rehabilitation Repair of damaged well structures at Shella Shallow Wells Address the Well structural damages and replace the stolen items at the respective Wells. - Construction of Concrete Well Top Covers and replacement of all necessary missing items. Ls 4,698,430 1 4,698,430 B. Capital Works Computers and printers Provide incentive for keeping records of daily operation within all sections Computers with a RAM 8 or above Supply Computers with a RAM 8 or above Ls 1,128,000 1 1,128,000 C. Treatment works Improving water production at water sources Provide Booster and well Pumps at Shella and Belebele water works. 0.75 Kw submersible Pump Supply and Delivery of 0.75 Kw 3 Phase submersible complete with all necessary accessories No 55,000 10 550,000 Provide Booster and well Pumps at Shella and Belebele water works. 2.2 Kw submersible Pump Supply and Delivery of 2.2 Kw 3 Phase submersible complete with all necessary accessories No 79,000 10 790,000 Provide Booster and well Pumps at Shella and Belebele water works. 11 Kw submersible Pump Supply and Delivery of 11 Kw 3 Phase submersible complete with all necessary accessories No 600,200 2 1,200,400 Provide boosters and well Pumps at Shella and Belebele water works. 18.5 Kw submersible Pump Supply and Delivery of 18.5 Kw 3 Phase submersible complete with all necessary accessories No 770,000 2 1,540,000 Sub-Total 9,906,830 FY 2028-2029 A.NRW Reduction Plan To reduce NRW from 51% to 50% Replacement of old and leaking GI Pipes. Rehabilitation of Mkomani service line No 1,100,500 1 1,100,500 B. Water System Rehabilitation Replacement of old and worn- out PVC Pipeline along the sea front Remove the old DN 63mm PVC Pipeline and construct a new DN 63mm PVC Pipeline DN63mm Dia, 1.9km PVC Pipeline Construction of a DN 63mm PVC Pipeline, interconnected to all the existing registered water connections along the Seafront Pipeline No 2,088,375 1 2,088,375 C. Treatment work Improving water production at water sources Provide Booster and well Pumps at Shella and Belebele water works. 0.75 Kw submersible Pump Supply and Delivery of 0.75 kW 3 Phase submersible, complete with all necessary accessories No 55,000 10 550,000 2.2 Kw submersible Pump Supply and Delivery of 2.2 kW 3 Phase submersible, complete with all necessary accessories No 79,000 10 790,000 11 Kw submersible Pump Supply and Delivery of 11 kW 3 Phase submersible, complete with all necessary accessories No 600,200 2 1,200,400 18.5 Kw submersible Pump Supply and Delivery of 18.5 kW 3 Phase submersible, complete with all necessary accessories No 770,000 2 1,540,000 1232 1232 Targetted Investment Project Area Guide Size Sample Descriptions Unit Unit Cost Quantity Project Cost (KSh.) D. Water system extension Pipeline extension Pipeline extension at India - Polytechnic Area. 350 metres DN63mm PVC Pipeline Construction of 350 metres PVC Pipeline at India - Polytechnic Area in Shella ward No 527,625 1 527,625 Pipeline extension at Manda area, Shella Ward. 1,500metres DN63mm PVC Pipeline Construction of 1,500 metres PVC Pipeline at Mand Area in Shella ward No 1,256,350 1 1,256,350 To provide water access at Mokowe DTF-50 Site DN 63mm, 1,500 meters PVC Pipeline Construction of 1,500 metres PVC Pipeline for Mokowe DTF-50 Site and its environs Ls 1,256,350 1 1,256,350 Sub- Total 3,040,325 TOTAL 10,309,600 Dated the 9th March, 2026. RICHARD CHERUIYOT, MR/7808745 Ag. CEO, Water Services Regulatory Board.