GAZETTE NOTICE NO. 1305

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 KEWASCO 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 KEWASCO that the approved tariffs for the three financial years 2022/23, 2023/24, and 2024/25 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2022/2023 to 2024/2025 Customer Category Approved Domestic/Residential Consumption Block in M³ Tariff (KSh/M3) 1-6 50 7-20. 88 21-50 95 51-100 110 101-300 125 >300 145 Commercial/Industrial 1-50 88 51-100 110 101-300 125 >300 145 Government 1-50 88 51-100 110 101-300 125 >300 145 Schools, Universities and Colleges 1-600 53 601 - 1200. 88 >1200 90 Bulk Water Supply Per M3 35 Multi- Dwelling Units Per M3 90 Water Kiosks Per M3 35 1.2 Sewerage Tariff Structure for the Period 2022/2022 to 2024/2025 (a) 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. (b) 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. Note: All disconnected accounts (water only, sewer only and water + sewer shall be charged based on the average of the last three months’ charges before the disconnection. 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, restaurants less than 15 m3 4,000 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 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 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 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 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 KEWASCO area for all consumers Sale of water per m3 at bowsing point (own tanker) Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 450 450 Item/ Service Charge (KSh.) 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 Statement of account fees 200 For cutting off the supply at the request of the consumer For turning on the supply otherwise than in respect of a first connection 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) 10,000 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 KEWASCO during the tariff period: Expenditure Item Base Year 2020/21 2021/22 2022/23 2023/24 2024/25 Operations 194,832,623 218,905,764 265,026,572 290,139,270 311,994,099 Maintenance 13,070,062 14,767,526 15,756,976 17,116,518 18,409,529 Regulatory Levy 9,528,032 7,317,599 9,532,647 10,306,762 11,316,000 Other Levies 2,023,647 2,506,519 2,873,127 3,091,104 3,391,029 Total O&M Costs 219,454,364 243,497,408 293,189,321 320,653,653 345,110,658 Minor Investments 13,540,794 7,896,833 29,045,867 50,204,901 19,741,575 Total Costs 232,995,158 251,394,241 322,235,188 370,858,554 364,852,233 Total Billing (KSh) 200,429,310 264,069,888 349,858,194 430,743,304 439,109,074 Collection Efficiency (%) 97% 95% 95% 95% 95% Projected Revenue 194,416,431 250,866,394 332,365,285 409,206,138 417,153,620 O&M Cost Coverage 89% 103% 113% 128% 121% Total Cost Coverage 83% 100% 103% 110% 114% 3.0 Conditions attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions of Kericho Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff. Target 2021/2022 2022/2023 2023/2024 2024/2025 Water Coverage (%) 37 38 39 40 Water quality standards (%) 100% Compliance with Water Quality Standards Personnel Expenditure as % of O&M 60 53 53 53 Non-Revenue Water 50% 44% 42% 40% Hours of Supply (Hrs.) 21 24 24 24 Staff per 1000 connections 8 7 6 5 Maintenance Expenditure as % of O&M 6% 8% 9% 11% Metering ratio (%) 62 85 100 100 Collection Efficiency (%) 98 95 95 95 Resale at Kiosk Regulate resale by kiosk vendors at KSh. 2 per 20-litres. Tariffs at kiosks must be displayed at strategic points for public awareness (ii) Annual budgets: The utility shall adhere to the budgetary levels set in the tariff. (iii) Surpluses: the surpluses projected to be realised shall be set aside to implement priority service delivery capital projects. KEWASCO shall be required at the end of every financial year to identify the priority project to be implemented and obtain approval from 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 to WASREB a quarterly performance report in the format provided. (vi) Customer re- categorisation for billing: KEWASCO will separate individual domestic accounts from Multi-Dwelling Units 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 recommended MDU/ Gated Community tariff for Water, Sewerage and other Miscellaneous charges specified in this tariff. (vii) Ring-Fencing of Capital Expenditure: The WSP to open a separate account for 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) Creation of distinct water and sewer cost centres: KEWASCO will ensure it creates separate water and sewer cost centres and maintains distinct record of operations of the two centres. (ix) Tariff Assessment: WASREB will carry out a tariff implementation review within the first 12 months of approval and implementation during which a joint assessment with the utility on the trend in Billing (Ksh) shall be carried out and status of implementation of the tariff evaluated. (x) Investments: The utility shall undertake the investments in Annex 1: Annex 1—INVESTMENTS ANNEX 1: -RECOMMENDED INVESTMENTS BY KEWASCO FOR THE PERIOD 2022/2023 – 2024/2025 Thematic Area Activity 2022/2023 2023/2024 2024/2025 1. Increased Access to Water and Sanitation Services 1.1 Metering Purchase of Water Meters for 4,320,000 4,320,000 4,320,000 3rd February, 2023 THE KENYA GAZETTE ANNEX 1: -RECOMMENDED INVESTMENTS BY KEWASCO FOR THE PERIOD 2022/2023 – 2024/2025 Thematic Area Activity 2022/2023 2023/2024 2024/2025 new connections Urban 1,296,000 1,296,000 1,296,000 Rural 3,024,000 3,024,000 3,024,000 1.2 Network Extensions Last Mile Connectivity for 13 Sublocations each 2km length of pipeline. (Urban) 4,669,093 15,563,645 - Sub-Total 8,989,093 19,883,645 4,320,000 2. Non - Revenue Water Management 2.1 Active leakage control Replace of dilapidated water lines with HDPE: Fort Tenan; Kapkakate; Kapsoit 1,638,898 4,163,781 Restoration of interrupted water supply in areas with damaged infrastructure. 1,433,794 1,433,794 1,433,794 2.2 Performance Indicators Measurement of physical losses through MNF Measurements 1,248,400 882,000 926,100 2.3 Water Balance, Flow and Pressure Monitoring, Mapping Installation of master/bulk meters at all system input locations. 700,000 Replacement of the malfunction ing system input bulk meters. 1,600,000 Procurement Installation and use of pressure gauges and pressure recorders at different location in the supply zones. 1,450,000 Installation of Pressure Reducing Valves (PRVs) 1,362,000 Totally isolating zones from adjacent zones where water can be temporarily closed using gate 2,315,682 2,315,682 2,315,682 ANNEX 1: -RECOMMENDED INVESTMENTS BY KEWASCO FOR THE PERIOD 2022/2023 – 2024/2025 Thematic Area Activity 2022/2023 2023/2024 2024/2025 valves and where volume supplied and billed measured. Purchase additional sluice valves and master meters. Procure High Resolution Imagery - 500,000 - Procure additional GPS machines and Trimble- Juno 750,000 Pipe replacement in locations beyond repair/prone to constant damages. This will be informed by monthly job card reports analysis in GIS. Start with identified 85KM of uPVC with HDPE 5,000,000 5,000,000 2,500,000 2.4 Leak Repair Records Operations Manager WDM, to introduce leak, no water and burst occurrence book for all Areas from which jobs will be assigned to Area Managers. 210,000 2.5 Customer Metering Purchase of meters for metering of unmetered connection. 1,750,000 3,500,000 3,500,000 Perform Meter testing using bucket method and Portable Meter Testing Kit. 300,000 600,000 Replace all non- functional meters (static/stalle d, damaged, 760,000 1,264,000 432,000 452 452 ANNEX 1: -RECOMMENDED INVESTMENTS BY KEWASCO FOR THE PERIOD 2022/2023 – 2024/2025 Thematic Area Activity 2022/2023 2023/2024 2024/2025 tempered) Replace all class B meters with class C meters 2,450,000 2,550,000 2,864,000 Improve mobile meter reading. 150,000 150,000 150,000 Sub-Total 17,956,773 27,521,257 14,121,575 3.Enhanced organisational capacity 3.1 Automation of Operational Processes Automate and integrate ICT in all business processes like Managemen t Information System (MIS), Human Resource Information System and Geographic al Information System (GIS) 500,000 250,000 250,000 3.2 Management of Human Resources Re- introduction of job-cards and procuremen t of e- timesheet system for office and field staff 1,000,000 750,000 750,000 Sub-Total 1,500,000 1,000,000 1,000,000 4. Provision of Services to Poor/Marginalis ed Areas 4.1 Kiosk Management Pilot pre- paid meters for existing kiosks (every customer has token) - 1,800,000 300,000 4.2 Distinct Network Extensions Extension of a sewer line Towett Area 600,000 - - Sub-Total 600,000 1,800,000 300,000 Grand Total 29,045,867 50,204,901 19,741,575 JULIUS K. ITUNGA, MR/4245732 Ag. Chief Executive Officer.