GAZETTE NOTICE NO. 1310

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 NGAWASCO 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 NGAWASCO 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 45.00 7-20. 60.00 462 462 21-50 70.00 51-100 85.00 101-300 100.00 >300 130.00 Multi Dwelling Units/Gated Communities 60.00 Commercial/industrial 1-50 70.00 51-100 85.00 101-300 100.00 >300 130.00 Government Institutions 1-50 70.00 51-100 85.00 101-300 100.00 >300 130.00 Schools, Universities and Colleges 1-600 50.00 601 - 1200. 60.00 >1200 90.00 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. 350 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: 7,500 Item/Service Charge (KSh.) 1.5 inches to 3 inches 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 NGAWASCO 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 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 NGAWASCO during the tariff period: Expenditure Item Base Year 2020/ 2021/2022 2022/2023 2023/2024 2024/2025 Operations 31,951,798 30,422,881 30,957,188 31,873,708 32,877,823 Maintenance 4,076,431 4,444,964 841,488 862,265 883,654 Regulatory Levy 1,471,821 1,520,000 1,468,987 1,974,731 2,058,132 3rd February, 2023 THE KENYA GAZETTE Other Levies 740,190 694,290 717,429 741,377 766,165 Debt Repayment 380,000 360,000 360,000 360,000 360,000 Minor Investments - - 4,538,550 3,171,022 2,672,000 Total Costs 38,620,240 37,442,135 38,883,642 38,983,103 39,617,774 Total Billing (KShs) 33,386,391 36,303,399 41,422,830 43,094,076 44,832,888 Collection Efficiency (%) 95% 95% 95% 95% 95% Projected Revenue 31,717,071 34,488,229 39,351,689 40,939,372 42,591,244 Total Cost Coverage 82% 92% 101% 105% 108% 3.0 Conditions attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions of Ngagaka Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff Target 2021/2022 2022/2023 2023/2024 2024/2025 Water Coverage (%) 95 95 96 96 Water quality standards (%) 100% Compliance with Water Quality Standards Personnel Expenditure as % of O&M 61% 60% 59% 58% Non-Revenue Water (%) 37% 36% 36% 35% Hours of Supply (Hrs.) 24 24 24 24 Staff per 1000 connections 4 4 4 4 Maintenance Expenditure as % of O&M 12% 13% 13% 14% Metering ratio (%) 100 100 100 100 Collection Efficiency (%) 95 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. NGAWASCO 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: NGAWASCO 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) 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. (ix) Investments: The utility shall undertake the investments in Annex 1: Annex 1— INVESTMENTS SUMMARY OF CAPITAL INVESTMENTS TO BE CARRIED OUT BY NGAGAKA WATER AND SANITATION COMPANY LTD. FOR THE PERIOD 2022/23 – 2024/25 NRW Reduction Plan 2022/2023 2023/2024 2024/2025 Activity Purchase of pressure gauges (4 No.) 80,000 - - GIS/MAP-capture of all supply and distribution lines 250,000 - - Identify illegal connections, replace malfunctional meters (at least 100no.) 400,000 - - Purchase and installation of meters for at least 4No. DMAs. 500,000 - - 1,230,000 - - Rehabilitation of Pipeline and New Network Extension Area Ngagaka Scheme-4 kilometres of 4''pipeline - - 2,672,000 Ngagaka Scheme-3.12 kilometres of 3''pipeline 1,354,704 - - Ngagaka Scheme-2.51 kilometres of 2''pipeline - 670,672 - 1,354,704 670,672 2,672,000 Metering Purchase and Installation of 1/2'' 550 New Connections (Consumer meters) - 1,780,350.0 0 - Re-Connection (Replacements) of 350 1/2 '' consumer meters 1,132,950 - - 1,132,950 1,780,350 - Acquisition of other assets Purchase of 8 no Computers (Laptops /Desktops) - 720,000 - Purchase of Furniture and fittings 500,000 Purchase of 1No Computer Server 320,896 820,896 720,000 - TOTALS 4,538,550 3,171,022 2,672,000 JULIUS K. ITUNGA, MR/4245732 Ag. Chief Executive Officer.