GAZETTE NOTICE NO. 1306

in accordance to 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 KIAWASCO is justified in order 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 KIAWASCO 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 68 7-20. 113 21-50 118 51-100 125 101-300 130 >300 150 Commercial/Industrial 1-50 113 51-100 125 101-300 130 >300 150 Government Institutions 1-50 113 51-100 125 101-300 130 >300 150 Schools, Universities and Colleges 1-600 80 601 - 1200. 100 >1200 120 Bulk Water Supply/Water Projects Per M3 50 Multi- Dwelling Units Per M3 120 Water Kiosks Per M3 35 1.2 Sewerage Tariff Structure for the period 2022/2022 to 2024/2025 (a) Consumers with a Water Connection Customer Category Approved Tariff Domestic Consumption Block in m³ (75 % of water consumed) Tariff 1-6 45 7-20. 65 21-50 75 51-100 80 101-300 90 >300 100 Commercial/industrial/Gover nment 1-50 74 51-100 80 101-300 90 >300 100 Schools, Universities and colleges 1-600 60 3rd February, 2023 THE KENYA GAZETTE Customer Category Approved Tariff 601 - 1200. 70 >1200 80 Multi dwelling Units Per M3 65 (b) Consumers without a Water Connection Sewerage consumers without a water connection shall be charged as follows: • Domestic (Per Single dwelling unit): KSh. 350 per month • All other categories: 75% of the volume of water consumed as per the metered source at the rates specified (in 1.2(a)) 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 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 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 KIAWASCO 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 Sewer Connection- Residential/ Domestic 5,000 Item/ Service Charge (KSh.) 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 KIAWASCO during the tariff period: Expenditure Item Base Year 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 Operations 126,272,548 151,754,400 172,838,360 196,042,822 223,862,811 Maintenance 64,448,155 45,355,800 47,361,518 50,046,113 51,772,621 Regulatory Levy 7,685,375 10,401,336 12,439,441 13,928,235 14,664,296 Other Levies 1,710,493 2,640,000 3,036,000 3,491,400 4,015,110 Total O&M Costs (Ksh) 200,116,571 210,151,536 235,675,319 263,508,570 294,314,838 Minor Investments 2,571,400 38,130,000 47,929,750 44,451,750 42,516,250 Debt Repayment - - 22,601,773 22,389,881 22,177,990 Total Costs (Ksh) 202,687,971 248,281,536 306,206,842 330,350,201 359,009,078 Total Billing (KShs) 212,043,661 260,033,405 310,986,024 348,205,886 383,925,038 Collection Efficiency (%) 89% 89% 95% 95% 95% Projected Revenue (Ksh) 188,718,858 231,429,730 295,436,723 330,795,592 364,728,786 O&M Cost Coverage (%) 94% 110% 125% 126% 124% Total Cost Coverage (%) 93% 93% 96% 100% 102% 3.0 Conditions attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions of Kiambu Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff 454 454 Target 2021/2022 2022/2023 2023/2024 2024/2025 Water Coverage (%) 80 82 84 86 Water quality standards (%) 100% Compliance with Water Quality Standards Non-Revenue Water (%) 35 33 31 29 Hours of Supply (Hrs.) 18 20 22 24 Staff per 1000 connections 6 5 5 5 Metering ratio (%) 100 100 100 100 Collection Efficiency (%) 93 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. KIAWASCO 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) Creation of distinct water and sewer cost centres: KIAWASCO will ensure it creates separate water and sewer cost centres and maintains distinct record of operations of the two centres. (vii) Customer re- categorisation for billing: KIAWASCO 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. (viii) 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. (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. Additionally, an assessment will be carried out on progress of the separate water and sewer cost centres and maintenance of distinct record of operations of the two centres. (x) Debt Repayment: KIAWASCO will shall remit monthly loan repayments as detailed below: KIAWASCO Loan Repayment Plan Year 0 Year 1 Year 2 Year 3 2021/2022 2022/2023 2023/2024 2024/2025 Recommended debt repayment per annum - 22,601,77 22,389,881 22,177,99 Evidence of loan repayment to AWWDA shall be submitted to WASREB monthly by the 10th day of the following month. (xi) Investments: The utility shall undertake the investments in Annex 1 ANNEX 1—INVESTMENTS SUMMARY OF CAPITAL INVESTMENTS TO BE CARRIED OUT BY KIAMBU WATER AND SANITATION COMPANY LIMITED FOR THE PERIOD 2022/23 – 2024/25 Recommended Investments 2022/2023 2023/2024 2024/2025 Water Meters and New Connections fittings 7,740,000 8,600,000 9,460,000 Meter replacements 5,000,000 5,200,000 5,400,000 Computers 775,000 800,000 825,000 Laptops 775,000 800,000 825,000 Shared Printer - - 600,000 Thermal Printer - 110,000 - Motorbikes 1,440,000 - - Smartphones Rugged 264,000 276,000 300,000 Intercom: Switch Board and Headsets - - 500,000 Billing Software/ERP system - Module 1 Billing, CRM and HR 5,000,000 3,500,000 3,500,000 Document Management System - - - Server - - 750,000 Server Cabinet - - - Centralized Power back up system - - - Smart TV - - 150,000 Public Address system inclusive of a generator - - 300,000 Standby Generator - - 1,500,000 CCTV - Riara & Kamiti 600,000 1,200,000 - Paper shredder - - 80,000 Solarization of Kamiti intake Digital cameras - 120,000 120,000 Furniture set - Desk and Chair 94,500 165,000 105,000 Steel file Cabinets 63,000 66,000 70,000 Double Cab Pickup (3No) - 5,000,000 5,000,000 Survey equipment -Total station 1,000,000 1,000,000 - Lab equipment set 750,000 350,000 750,000 Water networks extensions/ rehabilitations (86.5kms) Ndumberi ward water distribution network (19.9km) 12,147,000 - - Kiambu township ward water distribution network (36.1km) 12,281,250 - 12,281,250 Riabai ward water distribution network (12.5km) - 5,566,250 - Tinganga ward water distribution network (18km) - 11,698,500 - Grand Total 47,929,750 44,451,750 42,516,250 JULIUS K. ITUNGA, MR/4245732 Ag. Chief Executive Officer.