GAZETTE NOTICE NO. 8181

NOTICE is given to the general public that Nairobi City Water and Sewerage Company (NCWSC) which provides water services by authority of a license issued by WASREB has applied to the Water Services Regulatory Board (WASREB) for a regular tariff review. Further, that NCWSC proposes an upward tariff review to enable the utility water to operate at full cost recovery and meet conditions necessary for improving service delivery. Please note that due to the challenge posed by the COVID 19 Pandemic, the WSP will hold hybrid public consultation meetings; face to face meetings for few stakeholders and virtual meetings for the rest of the stakeholders as outlined below; Water Service Provider Venue Day Date and Time Nairobi City Water and Sewerage Company Limited (NCWSC) Physical meeting Kenyatta International Conference Centre (K.I.C.C.) Friday, 29th July 2022 10.00 a.m. Virtual Meeting NCWSC to provide links Participants should be seated by 10.00 a.m. Personal identification of participants will be required. Members of the public in respective areas are invited to make oral and written submissions and ask any questions that may relate to the provision of water services in their areas. Details of the current tariff and the proposed tariff can be obtained from www.wasreb.go.ke. and/or https://www.nairobiwater.co.ke/ Premises where details of the proposed action can be obtained: Water Services Regulatory Board, NHIF Building, 5th Floor, Wing “A” and Head Office, Nairobi City Water and Sewerage Company Limited Offices Kampala Road, off Enterprise Road, Nairobi, Kenya and all its Regional Offices. Written comments on the application shall be emailed to tariffs@wasreb.go.ke or info@wasreb.go.ke or send in hard copy to: 5448 5448 The Chief Executive Officer, Water Services Regulatory Board, 5th Floor, NHIF Building, Ngong Road, P.O Box 41621 -00100, Nairobi. The closing date for receipt of comments is thirty (30) days after the publication of this notice. ANNEX 2 DETAILS OF PUBLIC CONSULTATION FOR NAIROBI CITY WATER AND SEWERAGE COMPANY LIMITED (NCWSC) REGULAR TARIFF APPLICATION (2022/23 to 2024/2025) 1.0 Cost and Revenue Structure for the Tariff Period (2022/23 to 2024/2025) KSh. KSh. Cost Subject to Annual Indexation Operations and Maintenance costs 8,862,926,697 8,862,926,697 Fixed Costs Average Annual Investment Cost 616,308,020 Debt 900,330,594 Sub Total- Fixed Costs 1,516,638,614 Total Average Annual Cost 10,379,565,311 Projected Average Annual revenue 10,679,074,910 Average Annual Cost Coverage 103% 2.0 Proposed Change in Water Tariff Structure for 2022/2023 to 2024/2025 Tariff Structure – Water Consumer Category Consumption Block(M3) Current Tariff (KSh./M3) Consumption Block(M3) Proposed Tariff (KSh./M3) Domestic/Residential 0-6 34 1-6m3 45 7-60m3 53 7-20m3 67 > 60 m3 64 21-50m3 70 51-100m3 76 101-300m3 78 >300m3 80 Commercial/ Industrial/ Government Institutions 0-6 34 1-50 67 7-60m3 53 51-100 76 > 60m3 64 101-300 78 >300 80 Schools/ Universities/Tertiary Institutions 0-600 48 1-600 50 601-1200 55 600<1200 m3 55 >300 60 >1200m3 60 Other Categories Multi dwelling units (MDU)/ Gated Communities 53 Multi dwelling units (MDU)/ gated communities Bulk water supply 30 Bulk water supply 32 Water kiosks 20 Water kiosks 22 3.0 Proposed Change in Sewerage Tariff Structure for 2022/23 to 2024/2025 3.1 Consumers with a Water Connection (a) Sewerage is charged at 75% of the volume of water billed at the sewerage tariff below for all customers with a sewerage connection. Tariff Structure - Sewer Consumer Category Consumption Block(m3) Current Tariff (KSh./M3) Consumption Block(m3) Proposed Tariff (KSh./M3) Domestic/Residential 0-6 34 1-6m3 43 7-60m3 53 7-20m3 56 > 60m3 64 21-50m3 63 51-100m3 65 101-300m3 68 >300m3 72 Commercial/ Industrial/ Government Institutions 0-6 34 1-50m3 56 7-60m3 53 51-100 65 > 60m3 64 101-300 68 >300 72 Schools/ Universities/Tertiary Institutions 0-600 48 1-600 43 601-1200 55 600<1200m3 45 >300 60 >1200m3 50 Other Categories Multi dwelling Units (MDU)/ 53 Multi dwelling Units (MDU)/ Gated Communities Gated Communities Bulk Sewerage customers N/A Bulk Sewerage customers (From WSPs) 8th July, 2022 THE KENYA GAZETTE (b) Disconnected water accounts shall be charged based on the average of the last three months’ sewerage charges before the disconnection. 3.2 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. 350 per month • All other categories: 75% of the volume of water consumed as per the metered source of water including boreholes, at the tariff below: - Consumption Block (M3) Proposed Tariff (KSh./M3) 1-6m3 43 7-20m3 56 21-50m3 63 51-100 m3 65 101-300m3 68 >300m3 72 4.0 Miscellaneous Charges These shall be charged as per the approved miscellaneous charges approved by WASREB. 5.0 Service Delivery Conditions attached to the Tariff Target Current Year 2021/22 2022/2023 2023/2024 2024/2025 Water Coverage (%) 82 83 84 85 Water quality standards (%) 91 100% Compliance with Water Quality Standards Maintenance as a % of O&M 3% 5% 5% 5% Personnel Expenditure as % of O&M 64% 66% 65% 65% Non-Revenue Water (%) 46% 44% 43% 41% Hours of Supply (Hrs) 8.30 8.80 9.30 9.80 Staff per 1000 connections 8.08 7.58 7.08 6.58 Metering ratio (%) 100% 100% 100% 100% Collection Efficiency (%) 95% 95% 95% 95% Resale at Kiosk Ksh.2/= per 20 Litres Jerrycan at manned Kiosks Ksh.1/= per 20 Litres Jerrycan at ATM Water Dispenser 6.0 Other Conditions 6.1.1 Annual budgets The WSP shall adhere to the budgetary levels set in the tariff. 6.1.2 Surpluses The surpluses projected to be realised shall only be used in extension on water /sewer network system to increase coverage/access to water and sanitation services. 6.1.3 Reporting The utility shall submit to WASREB a quarterly performance report in the format provided. 6.1.4 Creation of distinct water and sewer cost centres NCWSC will ensure it creates separate water and sewer cost centres and maintains distinct record of operations of the two centres. 6.1.5 Repayment of Loans NCWSC shall remit monthly loan repayments as detailed below: - Financing (KSh.) 2022/2023 2023/2024 2024/2025 AFD Loan CKE 3005 9,918,386 9,918,386 664,624 AFD Loan CKE 1049 on lent @ 2.3% 10,790,040 10,790,040 10,790,040 World bank Loan IDA 4376 KE on lent @ 1.5% 36,870,547 36,870,547 36,870,547 AfDB Loan on lent @ 3% 20,921,410 20,532,566 20,145,516 Total 78,500,383 78,111,539 68,470,727 Evidence of loan repayment to AWWDA shall be submitted to WASREB on a monthly basis by the 10th day of the following month. 6.1.6 Personnel Expenditure as a % of O& M NCWSC to work towards sector benchmarks. 6.1.7 Customer re- categorisation for billing NCWSC shall bill all MDU / Gated communities at the proposed MDU/ Gated Community tariff for water, sewerage and other miscellaneous charges specified in this tariff. 6.1.8 Tariff self-Assessment WASREB and NCWSC will carry out a self-assessment of the trend in billing (KSh.) within the first 3 months of approval and implementation of the tariff. The detailed report should be submitted to WASREB. 6.1.9 Investments The utility shall undertake the following investments within the tariff period and submit progress reports on a quarterly Basis. (See Annex 1 Below) ANNEX 1: -PROPOSED INVESTMENTS BY NCWSC FOR THE PERIOD 2022/2023 – 2024/2025 No. Proposed Investment Details 2022/2023 2023/2024 2024/25 A Maintenance and Installation of isolation valve at Kabete 1,461,600 5450 5450 ANNEX 1: -PROPOSED INVESTMENTS BY NCWSC FOR THE PERIOD 2022/2023 – 2024/2025 No. Proposed Investment Details 2022/2023 2023/2024 2024/25 Improvement of Water Intakes Fencing of intakes at Sasumua 41,499,087 Desilting of Ruiru intake 10,554,586 Maintenance of Intakes at Mwagu, Sasumua, Kiamakia and Kikuyu Inlets 9,744,000 Desilting of Mwagu intake 55,941,644 Maintenance of Mwagu, Sasumua, Kimakia and Kikuyu Intakes 9,744,000 Intake Surveillance 15,000,000 Sub-total A 63,259,273 55,941,644 24,744,000 B Construction and Upgrading of Sewer Networks 4.19 km of sewer in Kasarani - Mwiki 82,817,652 4.7 km of sewer in Kasarani - Mwiki 92,815,787 3.1 km of sewer in Kasarani - Mwiki 61,401,541 3.5km of sewers in Kawangware 66,587,126 3.5 km of sewers in Kawangware 66,032,774 2.4 km of sewers in Ruai 46,500,000 5.5 km of sewers in Ruai 108,500,000 3 km of sewers in Njiru 58,333,333 6.5 km of sewers in Njiru 127,166,667 3 km of sewers in Utawala 60,000,000 Sub-total B 149,404,777 263,681,895 357,068,208 C Laying last mile connectivity of water networks 3 km of DN 200 water pipeline in Mwiki 16,770,398 2 km of DN 200 water pipeline in Mwiki 11,180,266 2.3 km of DN 150 water pipeline in Mwiki 9,274,014 1.5 km of DN 150 water pipeline in Mwiki 5,939,263 5 km of DN 200 water pipeline in Kawangware 27,950,664 3.75 km of DN 150 water pipeline in Kawangware 15,178,868 3 km of DN 200 water pipeline in Ruai 16,770,398 2.4 km of DN 150 water pipeline in Ruai 9,287,006 3.5 km of DN 200 water pipeline in Ruai 25,155,598 3.6 km of DN 150 water pipeline in Ruai 13,930,510 5 km of DN 200 water pipeline in Njiru 27,950,664 4 km of DN 150 water pipeline in Njiru 16,087,344 7.5km of DN 200 water pipeline in Utawala 41,925,996 7.5km of DN 150 water pipeline in Utawala 28,565,145 Sub-total C - 46,511,684 219,454,450 D Development and rehabilitation of minor water infrastructure Laying of 10.6 Km (CBD, Maringo, Mbotela, Pumwani and Kariokor) 29,206,313 (CBD, Maringo, Mbotela, Pumwani & Kariokor) - 40 km 108,440,023 Sub-total D - 29,206,313 108,440,023 E Rehabilitation of Sewer Networks Sewer rehabilitation - 15.2 km of simplified sewers in Mukuru Kwa Njenga, Mukuru Kwa Reuben, Dandora, Githurai, Kawagware, Dagoretti, Mathare, Korogocho, Kangemi and Mwihoko 351,706,748 Sub-total E - - 351,706,748 F Non-Revenue Water Reduction Plan High consumer metering - replacement and reinstallation of aged meters 69,853,725 59,969,970 49,681,350 Sub Total F 69,853,725 59,969,970 49,681,350 Grand Total 282,517,775 455,311,506 1,111,094,780 PETER NJAGGAH, MR/3822741 for Chief Executive Officer.