GAZETTE NOTICE NO. 5973

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 KIWACO 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 KIWACO that the approved tariffs for the four Financial Years 2024/25, 2025/26, 2026/27and 2027/28 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff for the period 2024/2025 to 2027/2028 Consumer Categories Consumption Block Approved Tariff (m3) (KSh/m3) Domestic/Residential 1-6 125 7-20. 135 21-50 150 51-100 160 101-300 170 >300 180 Multi-Dwelling Units Flat Rate 150 Government Institutions 1-50 150 51-100 160 101-300 170 >300 180 Commercial/Industrial 1-50 150 51-100 160 101-300 170 >300 180 Schools/ Colleges/Universities 1-600 150 600<1200m3 165 >1200m3 180 Unique Consumer Categories Bulk Water Supply (Per m3) 120 Bowsing Points (Per m3) 150 Water Kiosks (Per m3) 50 Customers with non-functional meters shall be billed based on the average of the last three months’ bills. THE KENYA GAZETTE 17th May, 2024 1.2 Sewerage Tariff 1.2.1 Consumers with a Water Connection (a) 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) Disconnected water accounts shall be charged based on the average of the last three months’ sewerage charges before the disconnection. 1.2.2 Customer with no water connection Sewerage consumers without a water connection shall be charged as follows: • Domestic customers without a metered source of water (Per Single dwelling unit): KSh. 300 Per Month • All other categories: 75% of the volume of water consumed as per the metered source of water including boreholes, at the rates specified in (1.1) above. 1.3 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 2025. 1.4 Miscellaneous Charges Item/ Service Charge (KSh.) Water Deposit Category of consumer Domestic 2500 Retail shops less than 10m3 3000 Retail shops more than 10m3 3,500 Bar, and restaurants less than 15 m3 4000 Bar, 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 15000 Hotel class “C” and ‘D’ less than 150 m3 18000 Hotel class “C” and ‘D’ more than 150 m3 20,000 Hospitals more than 150 m3 20,000 Health centres less than 150 m3 12,000 Schools and other institutions more than 200 m3 20,000 Schools 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 industrial between 200 m3 and300 m3 50,000 Heavy industries of 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 – 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, 16,000 litres 2,500, 5,000 respectively per tanker within the WSP area for all consumers 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 Special meter reading under customer’s request 500 Sewer Connection- Residential/ Domestic 5,000 Sewer Connection- Commercial, Government, Schools, Universities and Colleges 7,500 Sewer Connection- Industrial 15,000 Private sewer unblocking 2,500 Leak detection services 1,000 Sewer Reconnection fee 15,000 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 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 17th May, 2024 THE KENYA GAZETTE Item/ Service Charge (KSh.) 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 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 KIWACO during the tariff period: ` 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 Operations 181,442,983 255,364,910 275,316,914 275,316,914 275,316,914 275,316,914 Maintenance 14,536,569 15,977,222 18,232,675 18,232,675 18,232,675 18,232,675 Regulatory Levy 5,759,197 9,524,543 14,665,348 14,665,348 14,665,348 14,665,348 Total O&M Costs 201,738,748 280,866,674 308,214,937 308,214,937 308,214,937 308,214,937 Investment Costs - - 12,930,000 33,065,800 43,382,610 26,160,000 Total Costs 201,738,748 280,866,674 321,144,937 341,280,737 351,597,547 334,374,937 Total Billing (KShs) 136,314,993 227,439,200 355,260,943 388,241,047 424,523,769 434,989,764 Collection Efficiency (%) 87% 90% 90% 91% 92% 93% Projected Revenue 119,097,755 204,695,280 319,734,849 353,299,353 390,561,867 404,540,481 Total Cost Coverage 59% 73% 100% 104% 111% 121% 3.0 Conditions attached to the Tariff approval. The conditions attached to this approval which shall form part of the license conditions of KIWACO are: (i) hice Delivery Conditions attached to the Tariff. Service Delivery Conditions Target 2022/2023 2023/24 2024/25 2025/26 2026/27 2027/28 Water Coverage (%) 95% 95% 96% 97% 98% 99% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O&M 29% 22% 21% 20% 18% 17% Maintenance Expenditure as % of O&M 7% 6% 6% 6% 7% 7% Investment Expenditure as a % of Total Expenditure 0% 1% 8% 11% 10% 0% Non-Revenue Water 37% 36% 33% 30% 30% 30% Hours of Supply (Hrs.) 12 12 14 16 18 20 Staff per 1000 connections 10 10 9 9 9 9 Metering ratio (%) 100% 100% 100% 100% 100% 100% Collection Efficiency (%) 90% 91% 92% 93% 94% 95% Resale at Kiosk Kshs. 3.00 per 20l Jerry Can (ii) Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. (iii) Surpluses: The surpluses realised during the tariff period shall be used to implement priority service delivery capital projects approved by WASREB. (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) Reporting: The utility shall submit quarterly performance reports to WASREB in the prescribed format. (vi) Creation of distinct water and sewer cost centres: KIWACO will ensure it creates separate water and sewer cost centres and maintains distinct record of operations of the two centres. (vii) Ring-Fencing of Capital Expenditure: The WSP is to open a separate account for the capital component of the tariff, to deposit the appropriate share of revenue into this account which is only to be used for capital expenditure and repayment of loans as provided for in the approved tariff. (viii) Investments: The utility shall undertake the investments in Table: 1: Table 1: Investments Recommended Investments for Kikuyu Water and Sewerage Co. Limited (2024/2025 - 2027/2028) S/No. Recommended Investment 2024/25 (KSh.) 2025/26 (KSh.) 2026/27 (KSh.) 2027/28 (KSh.) Total Activity Budgets (KSh.) 1 Laying of 12km assorted pipeline for last mile connectivity (DN90-DN 32) for distribution in Uthiru 16,565,80 16,565,800 2 Laying 10km of assorted distribution lines (DN90-DN 32) to serve Ndongoro area 11,317,79 11,317,791 3 Laying 3 km of DN 90 distribution main from Nyathuna to connect to Gachie network 5,160,000 5,160,000 4 Elevated Steel Tank - 48m3 Rugita Borehole Site 5,000,000 5,000,000 THE KENYA GAZETTE 17th May, 2024 S/No. Recommended Investment 2024/25 (KSh.) 2025/26 (KSh.) 2026/27 (KSh.) 2027/28 (KSh.) Total Activity Budgets (KSh.) 5 Laying of 2.5km DN 160 HDPE rising main to Rugita Overhead Tank. 7,050,000 7,050,000 6 Laying of 20km assorted pipeline (DN90-DN 32) for distribution in Rugita 23,644,81 23,644,819 7 Electrical Integrated Online Doser 14,000,00 14,000,000 8 Non - Revenue Water Management 2,880,000 11,500,00 3,420,000 - 17,800,000 9 Metering - New Connections 3,000,000 5,000,000 5,000,000 2,000,000 15,000,000 Total Annual Budgets 12,930,00 33,065,80 43,382,61 26,160,00 115,538,410 Dated the 2nd May, 2024. JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5723150 Water Services Regulatory Board.