GAZETTE NOTICE NO. 5966

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 the latest available data, WASREB has determined an upward tariff review for NZOWASCO 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 NZOWASCO that the approved tariffs for the three Financial Years 2024/2025, 2025/2026, and 2026/2027 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff for the period 2024/2025 to 2026/2027 Consumer Categories Consumption Block Approved Tariff (m3) (KSh./m3) Domestic/Residential 1-6 100 7-20 133 21-50 148 51-100 163 101-300 178 >300 190 Multi-Dwelling Units Per m3 133.00 Government Institutions/ Commercial/Industrial 1-50 148 51-100 163 101-300 178 >300 190 Schools/ Colleges/Universities 1-600 148 THE KENYA GAZETTE 17th May, 2024 Consumer Categories Consumption Block Approved Tariff (m3) (KSh./m3) 600<1200m3 178 >1200m3 190 Unique Consumer Categories Bulk Water Supply (Per m3) 80 Water Kiosks (Per m3) 75 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 2024/2025 to 2026/2027 (c) 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. (d) 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 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, 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 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 industrial 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 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) 133 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 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 17th May, 2024 THE KENYA GAZETTE Item/ Service Charge (KSh.) 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 projected cost structure that makes up the total costs to be incurred by NZOWASCO during the tariff period: Expenditure Item 2022/23 2023/24 2024/25 2025/26 2026/27 Operations 348,745,299 379,863,422 389,606,831 398,068,684 407,276,271 Maintenance 25,407,617 29,320,772 29,608,979 29,900,069 30,194,070 Regulatory Levy 15,371,348 16,000,000 16,320,000 16,646,400 16,979,328 Other Levies 3,881,435 4,699,280 4,827,659 5,321,792 5,523,595 Debt Repayment 224,687,140 223,105,916 221,812,274 220,323,384 194,328,447 Minor Investments 11,262,000 1,000,000 11,430,175 26,802,650 35,997,905 Total Costs 629,354,839 653,989,390 673,605,918 697,062,979 690,299,616 Total Billing (KSh.) 387,999,276 474,055,120 710,980,776 745,327,938 794,646,342 Collection Efficiency (%) 95% 95% 95% 95% 95% Projected Revenue 368,599,312 450,352,364 675,431,737 708,061,541 754,914,025 Total Cost Coverage 59% 69% 100% 102% 109% 3.0 Conditions attached to the tariff approval The conditions attached to this approval which shall form part of the license conditions of NZOWASCO are: (i) Service Delivery Conditions attached to the Tariff. Target 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 Water Coverage (%) 32% 33% 35% 37% 40% Sewer Coverage (%) 20% 20.5% 21.0% 21.5% 22.0% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O&M 38% 37% 37% 37% 37% Non-Revenue Water 52% 50% 48% 46% 45% Hours of Supply (Hrs.) 19 Staff per 1000 connections 7 7 6 6 5 Maintenance Expenditure as % of O&M 6% 7% 7% 7% 7% Metering ratio (%) 86% 90% 100% 100% 100% Collection Efficiency (%) 95% 95% 95% 95% 95% Resale at Kiosk KSh. 2.00 per 20l Jerry Can (ii) Annual budgets: The utility shall adhere to the budgetary levels set in the tariff. (iii) Metering: NZOWASCO shall progressively enhance the metering ratio to attain 100% as per condition 3 (i) above (iv) Catchment Protection: The utility shall undertake measures to conserve/ protect the catchment areas of their source of water as part of Corporate Social Responsibility (v) Customer re-categorization for billing: NZOWASCO will separate individual domestic accounts from Multi-Dwelling Units (MDU) accounts and migrate consumer billing data within the first 3 months of tariff approval and implementation of the tariff. The detailed report should be submitted to WASREB. Pursuant to this, the WSP shall bill all MDU / Gated communities at the Proposed MDU/ Gated Community tariff for Water, Sewerage, and other Miscellaneous charges specified in this tariff. (vi) Catchment Protection: The utility shall undertake measures to conserve/ protect the catchment areas of their source of water as part of Corporate Social Responsibility (vii) Surpluses: The surpluses realised during the tariff period shall be used to implement priority service delivery capital projects approved by WASREB. (viii) Creation of distinct water and sewer cost centers: NZOWASCO will ensure it creates separate water and sewer cost centres and maintains distinct records of operations of the two centres. (ix) Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided. (x) Investments: The utility shall undertake the investments in Table 1 Table 1: Investments Proposed Capital Investments for Nzoia Water Services Co. Limited 2024-2025 2025-2026 2026-2027 Details Of Investments Amount Amount Amount (KSh.) (KSh.) (KSh.) A. Customer metering (New connections) 2,000,000 2,000,000 3,000,000 B. Non-Revenue Water Reduction Plan 3,950,000 6,025,900 10,480,000 C. Sewer Improvement Network Rehabilitation (Site & Service Estate - 250m) 706,500 Extension - Kibomet - All Saints Line 3,315,350 Laying of 350 m sewer line of DN 400 Sewer line at Ngala estate Kitale 1,076,250 THE KENYA GAZETTE 17th May, 2024 Proposed Capital Investments for Nzoia Water Services Co. Limited 2024-2025 2025-2026 2026-2027 Details Of Investments Amount Amount Amount (KSh.) (KSh.) (KSh.) D. Movable Asset 1,000,000 1,000,000 2,000,000 E. Pro-poor Pilot pre-paid meters for existing kiosks and PSF 1,500,000 Repainting and installation of plumbing fittings on 50 No. Water kiosks and 3 PSF. 2,000,000 F. Extension of Water Service Lines Kima Lewa- Kibisi, 200m, extension DN 50 109,000 Kabuchai- Kisiwa 500m line extension DN 50 238,800 Mjini –Romima 1KM, DN 50mm 361,905 Line extension- Sanandiki 1km, DN 32mm 381,080 Sangalo Junction 200m, DN 100mm 446,390 Water extension Miskhu -Namirembe 800 m 2'' 687,000 Laying of 2Km 2" Chebosi-Malaha water extension 1,756,000 Laying of DN 200 from River Chwele-Mabangam, Ndengelwa-Sikata up to Lusaka Road -dual carriage junction 12,076,750 G. Rehabilitation of Service Lines - Water Kibichori - Mukuyuni line replacement, 200M, DN 50mm 111,605 Lwanda- Misiri line Replacement DN 50 150,600 Replacement of Asbestos pipes in National Housing 2km HDPE 1,430,500 Replacement of Asbestos pipes in Mnanda to lions 2km HDPE 6,335,500 H. Electro- Mechanical Installations Purchase of 4 sludge pumps 1,200,000 Procurement of low-lift pump at Matisi 4,000,000 I. ICT - *Upgrade of GL Client billing system in FY (2025/26) 500,000 500,000 3,891,600 Grand Total 11,430,175 26,802,650 35,997,905 Details of NRW Reduction Plan 2024_2025 2025_2026 2026_2027 1. System Input Metering 2,950,000 2,645,900 - 2. Maps/GIS - - 2,900,000 3. Customer Metering (a) Purchase of meters for metering of unmetered connections. - - 4,000,000 (b) Purchase of meters for metering of unmetered connections. - 2,000,000 2,200,000 (c) Relocation of all meters not accessible for reading. - 200,000 200,000 (d) Expose all buried meters, meter raise, and install properly all the poorly installed meters. - 180,000 180,000 (e) Implement smart meter readings for large consumers. 1,000,000 1,000,000 1,000,000 Total NRW Budget - NZOWASCO 3,950,000 6,025,900 10,480,000 Dated the 2nd May, 2024. JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5723150 Water Services Regulatory Board.