GAZETTE NOTICE NO. 10540

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 MAWASCO 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 MAWASCO that the approved tariffs for the three financial years, 2023/2024, 2024/2025 and 2025/2026 shall be as follows: (j) Approved Tariff Structure 1.1 Water Tariff Structure for the Period 2023/2024 to 2025/2026 Customer Category Consumption Block in M³ Approved Tariff (KSh/M3) Domestic/Residential 1-6 105 7-20. 150 21-50 180 51-100 200 101-300 220 >300 240 Multi-Dwelling Units Per M3 150 Commercial/Industrial/Government/Institutions 1-50 150 51-100 170 101-300 190 >300 225 Schools, Universities and Colleges 1-600 150 601 - 1200. 160 >1200 170 Water Kiosks Per M3 50 Bowsing Points Per M3 180 Bulk Water for resale Per M3 70 Customers with non- functional meters shall be billed based on the average of the last three months’ bills. 1.2 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 less than 150 m3 12,000 Hotel more than 150 m3 15,000 Hospitals more than 150 m3 20,000 Health centres less than 150 m3 12,000 Schools less than 200 m3 10,000 Schools and other institutions more than 200 m3 20,000 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 and 300 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 deposit Other Charges Service New water connection fee 2,500 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 WSP Service Area for all consumers 3444 3444 Sale of water per m3 at bowsing point (own tanker) 180 Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 Sewer Connection– Residential/ Domestic 2,500 Sewer Connection-Commercial, Government, schools, Universities and Colleges 5,000 Sewer Connection–Industrial 15,000 Private sewer unblocking 2,500 Leak detection services 1,000 Sewer Reconnection fee (At mains) 15,000 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 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) 5,000 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 approved cost structure that makes up the total costs to be incurred by MAWASCO during the tariff period: Expenditure Item 2023/2024 2024/2025 2025/2026 Operations 593,472,880 609,386,162 626,163,063 Maintenance 68,216,254 71,620,841 75,202,296 Regulatory Levy (WASREB) 33,744,801 33,790,264 33,836,636 Minor Investments 48,900,000 30,200,000 22,200,000 Debt Repayment 26,120,753 26,120,753 13,060,377 Total Costs 770,454,688 771,118,020 770,462,371 Total Billing (KSh.) 815,205,815 815,774,100 816,353,750 Collection Efficiency (%) 95% 95% 95% Projected Revenue 774,445,525 774,985,395 775,536,062 O and M Cost Coverage 111% 108% 105% Total Cost Coverage 101% 101% 101% 3.0 Conditions Attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions of Malindi Water and Sewerage Company are: (i) Service Delivery Conditions attached to the Tariff. Target 2023/2024 2024/2025 2025/2026 Water Coverage (%) 82% 83% 84% Water Quality Standards (%) 100% Compliance with Standards Personnel Expenditure as % of O and M 31% 32% 32% Non-Revenue Water 25% 25% 25% Hours of Supply (Hrs.) 22 23 24 Staff per 1000 connections 7 6 5 Metering ratio (%) 100% 100% 100% Collection Efficiency (%) 95% 95% 95% Resale at Kiosk KSh. 3.00 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) Surplus: The surpluses projected to be realised shall be used on priority infrastructure projects identified by MAWASCO and Approved by WASREB. (iv) Customer re-categorisation for billing: MAWASCO will separate individual domestic accounts from Multi-Dwelling Units (MDU) accounts and bill as per the approved tariff. (v) Creation of distinct water and sewer cost centres: MAWASCO to create separate water and sewerage cost centres and maintains distinct record of operations of the two centres. (vi) Repayment of Loans: MAWASCO shall remit monthly loan repayments to Coast Water Works Development Agency (CWWDA) as detailed below: - 11th August, 2023 THE KENYA GAZETTE Financing 2023/2024 2024/2025 2025/2026 WASSIP 1 and WASSIP AF (KSh.) 26,120,753 26,120,753 13,060,377 Evidence of loan repayment to shall be submitted to WASREB by the 10th day of the following month. (vii) Reporting: The utility shall submit to WASREB a quarterly tariff performance report in the format provided. WASREB will carry out tariff implantation review at the end of each year of implementation. (viii) Investments: The utility shall undertake the investments in Annex 1 and submit quarterly progress reports. Annex 1 Investment Summary for Malindi Water and Sewerage Water Company Limited (MAWASCO) Targeted Outcome Intervention 2023/2024 2024/2025 2025/2026 Increased Water Coverage New Connections 12,000,000 12,000,000 12,000,000 Sub - Total _New Connections 12,000,000 12,000,000 12,000,000 Non - Revenue Water Reduction Calibration of at least 50% of the customer meters 1,000,000 2,000,000 Acquisition of digital maps, Mapping out all the water infrastructure 8,700,000 Meter Replacement 4,200,000 4,200,000 4,200,000 Sub - Total _ NRW Reduction 13,900,000 6,200,000 4,200,000 Movable Assets Motorcycles 3,000,000 2,000,000 1,000,000 Sub - Total Movable Assets 3,000,000 2,000,000 1,000,000 Network Rehabilitation Replacement of Bungale –Dakacha 10km dilapidated pipelines with HDPE Pipeline 20,000,000 10,000,000 5,000,000 Sub - Total _ Network Rehabilitation 20,000,000 10,000,000 5,000,000 Total Investments 48,900,000 30,200,000 22,200,000 JULIUS ITUNGA Ag. Chief Executive Officer, MR/5166662 Water Services Regulatory Board.