GAZETTE NOTICE NO. 2703

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 MAVWASCO is justified in order to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions. WASREB gives a one (1) month notice to all existing and potential customers of MAVWASCO that the approved tariffs for the three financial years 2023/24, 2024/25, and 2025/26 shall be as follows: 8th March, 2024 THE KENYA GAZETTE 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2023/2024 to 2025/2026 Consumer Categories Consumption Block Approved Tariff (M3) (KSh./ M3) Domestic/Residential 1-6 120 7-20. 135 21-50 152 51-100 157 100-300 162 >300 170 Multi-Dwelling Units N/A 152 Government Institutions 1-50 152 51-100 160 100-300 170 >300 180 Commercial/Industrial 1-50 152 51-100 160 100-300 170 >300 180 Public Schools/ Colleges/Universities 1-600 140 600<1200m3 150 >1200m3 160 Unique Consumer Categories Bulk Water Supply (Per m3) 152 Bowsing Points (Drawing point for private tankers)- Per m3 152 Water Kiosks (Per m3) 50 1.2 Sewerage Tariff Structure for the period 2023/2024 to 2025/2026 a) Consumers with a Water Connection i. 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. ii. Disconnected water accounts shall be charged based on the average of the last three months sewer charges before the disconnection. b) Consumers without a Water Connection Sanitation consumers without a water connection shall be charged as follows: i. Single room, given an approximate water consumption of 2m3 sewer charge should be KSh. 180 per month. ii. One and two-bedroom units, given an approximate water consumption of 5m3, sewer charge should be KSh. 450 per month. iii. Three-bedroom units and above an approximate water consumption of 8m3, sewer charge should be KSh. 742 per month. iv. All other categories: 75% of the volume of water consumed as per the metered source of water. 1.3 Miscellaneous Charges These shall be as follows: Item/ Service Charge (KSh.) Water Deposit Category of Consumer Domestic 2,500 Multi Dwelling Units (MDU - Small); 4-10 units 5,000 Multi Dwelling Units (MDU - Medium); 11-20 units 10,000 Multi Dwelling Units (MDU - Large); > 21 units 20,000 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 connection 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 860 860 Item/ Service Charge (KSh.) Sale of water per m3 at bowsing point (own tanker) As per rates specified (in 1.1) above 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 projected Annual cost structure that makes up the total costs to be incurred by MAVWASCO during the tariff period: Expenditure Item 2021/22 2022/23 2023/24 2024/25 2025/26 Operations 202,728,191 219,671,788 234,612,579 258,101,918 270,163,270 Maintenance 29,998,159 36,837,963 40,349,471 44,271,852 48,666,790 Regulatory Levy (WASREB) 9,652,873 11,895,811 13,986,625 16,333,883 18,681,773 Abstraction Levy (WRA) 422,188 732,118 1,080,000 1,080,000 1,080,000 Operation and Maintenance (O & M) 242,379,223 268,405,562 288,948,675 318,707,653 337,511,832 Minor Investments - - 12,845,145 44,621,184 52,401,999 Total Costs 242,379,223 268,405,562 301,793,820 363,328,837 389,913,832 Total Billing (KSh.) 227,103,068 289,965,169 337,012,541 404,767,233 429,988,986 Collection Efficiency (%) 83% 85% 90% 95% 95% Projected Revenue 188,495,546 246,470,394 303,311,287 384,528,871 408,489,537 O and M Cost Coverage 78% 92% 105% 121% 121% Total Cost Coverage 78% 92% 101% 106% 105% 3.0 Conditions attached to the tariff approval. The conditions attached to this approval which shall form part of the license conditions of MAVWASCO are: i. Service Delivery Conditions attached to the Tariff Target 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Water Coverage (%) 49% 50% 51% 52% 53% Water quality standards (%) 60% 100% Compliance with Standards Personnel Expenditure as % of O and M 31% 30% 29% 27% 27% Non-Revenue Water 30% 29% 27% 25% 25% Hours of Supply (Hrs.) 6 6 7 8 9 Staff per 1000 connections 6 6 5 5 4 Maintenance Expenditure as % of O and M 12% 14% 13% 13% 14% Metering ratio (%) 100% 100% 100% 100% 100% Collection Efficiency (%) 83% 85% 90% 95% 95% Resale at Kiosk Kshs. 3.00 per 20l Jerry Can i. Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. ii. Surpluses: The surpluses projected to be realised shall ONLY be used on the rehabilitation/ replacement of dilapidated water networks, to curb physical losses of water. iii. Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided. iv. Tariff Assessment: MAVWASCO will be required to carry out a self-assessment of the trend in Billing (KSh.) within the first three (3) months of approval and implementation of the tariff. The detailed report should be submitted to WASREB. v. Investments: The utility shall undertake the investments in Table 1: 8th March, 2024 THE KENYA GAZETTE Table 1: Investments SUMMARY OF CAPITAL INVESTMENTS TO BE CARRIED OUT BY MAVOKO WATER AND SEWERAGE COMPANY LIMITED FOR THE PERIOD 2023/24-2025/26 Description 2023/2024 2024/2025 2025/2026 New connections (meters and fittings) 4,000,000 4,000,000 4,000,000 Extensions of Networks Syokimau pipeline extensions - 2,250,000 4,027,500 Athi river town pipeline extensions - 8,302,495 5,234,510 Mlolongo pipeline extensions - 1,710,000 1,822,515 Kinanie pipeline extensions - 2,069,995 4,732,300 Sub-total network extensions - 14,332,490 15,816,824 Non-Revenue Water Reduction Plan Replacement of water meters 400,000 800,000 2,000,000 Network Rehabilitation Town pipeline augmentation - 4,500,000 3,240,002 Mlolongo pipeline upgrades - 765,150 1,964,535 Syokimau pipeline upgrades - 764,980 2,129,455 Kinanie pipeline upgrades - 2,400,005 1,369,435 Sub-total network extensions - 8,430,135 8,703,427 Sewer improvements - 5,000,000 10,000,000 Purchase of Movable Assets (Administration) 3 No. Motor vehicles - double cab pick up (4 x4) 3,000 cc diesel 7,000,000 7,000,000 7,000,000 7 No. Motor bikes 150cc offroad 900,000 600,000 600,000 Assorted office furniture - 393,560 216,748 ICT equipment 545,145 700,000 700,000 Sub-total movable assets 8,445,145 8,693,560 8,516,748 Plant and machinery 3,365,000 3,365,000 Total 12,845,145 44,621,184 52,401,999 Dated the 1st March, 2024. J. ITUNGA, MR/6229676 Ag. Chief Executive Officer, Water Service Regulatory Board.