GAZETTE NOTICE NO. 10547

APPROVED TARIFF STRUCTURE FOR THE PERIOD 2023/2024 TO 2025/2026 Kapsabet Nandi Water and Sanitation Company (KANAWASCO) applied to the Water Services Regulatory Board (WASREB) for a review of tariffs for water services, for the period 2023/2024 to 2025/2026 as per section 72 (1) b of the Water Act, 2016. Public consultation on the application was carried out 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 KANAWASCO 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 KANAWASCO that the approved tariffs for the three financial years, 2023/2024, 2024/2025 and 2025/2026 shall be as follows: 1.0 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 1-6 108 7-20. 112 21-50 120 51-100 125 101-300 135 >300 150 Multi-Dwelling Units 112 Commercial/Industria l/Government/Institu- tions 1-50 112 51-100 130 101-300 140 >300 155 Schools, Universities and Colleges 1-600 112 601 - 1200. 120 >1200 125 Bulk Water Supply Per M3 72 Bowsing Points Per M3 112 Water Kiosks Per M3 35 Customers with non- functional meters shall be billed based on the average of the last three months’ bills. 1.2 Sewerage Tariff Structure for the period 2023/2024 to 2025/2026 (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. 1.3 Miscellaneous Charges This 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 Sale of water per m3 at bowsing point (own tanker) As per rates specified (in 1.1) above 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 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 3460 3460 Item/ Service Charge (KSh.) 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 KANAWASCO during the tariff period: Expenditure Item 2023/2024 2024/2025 2025/2026 Operations 86,968,906 92,262,890 99,532,355 Maintenance 4,723,900 5,395,400 5,225,900 Regulatory Levy (WASREB) 4,241,309 4,826,864 5,357,201 Operation and Maintenance (O and M) 95,236,052 101,671,204 109,224,857 Investments 5,024,940 8,528,530 13,707,430 Total Costs 100,260,992 110,199,734 122,932,287 Total Billing (KShs) 103,929,810 118,543,666 131,759,146 Collection Efficiency (%) 93% 95% 95% Projected Revenue 96,654,723 112,616,483 125,171,189 Subsidy from County Government 5,000,000 - - Total Projected Revenue including Subsidy 101,654,723 112,616,483 125,171,189 O+M Cost Coverage with Subsidy 107% 102% 102% Total Cost Coverage with Subsidy 101% 102% 102% 3.0 Conditions Attached to the Tariff Approval The conditions attached to this approval which shall form part of the license conditions of Kapsabet Nandi Water and Sanitation Company are: (i) Service Delivery Conditions attached to the Tariff. Target 2023/2024 2024/2025 2025/2026 Water Coverage (%) 35% 36% 37% Water Quality Standards (%) 100% Compliance with Standards Personnel Expenditure as % of O and M 36% 36% 34% Non-Revenue Water 35% 33% 30% Hours of Supply (Hrs.) 14 15 16 Staff per 1000 connections 8 8 7 Maintenance Expenditure as % of O and M 5% 5% 5% Metering ratio (%) 100% 100% 100% Collection Efficiency (%) 95% 95% 95% Resale at Kiosk KSh. 2.00 per 20 litres. Tariffs at kiosks must be displayed at strategic points for public awareness Performance targets to be met and ascertained by WASREB. Appropriate enforcement measures shall be taken against non- achievement of the set targets. (ii) Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. (iii) County Subsidy: The County Government of Nandi will support the WSP with an operational subsidy to meet electricity costs. 2023/2024 2024/2025 2025/2026 Operational Subsidy (Electricity Cost)- KSh. 5,000,000 - - (iv) Surplus: The surpluses projected to be realised shall be used on priority infrastructure projects identified by KANAWASCO and Approved by WASREB. (v) Reporting: The utility shall submit to WASREB a quarterly tariff performance report in the format provided. WASREB will carry out a tariff implementation review at the end of each year. (vi) Investments: The utility shall undertake the investments in Annex 1 and submit quarterly progress reports. Annex 1: Investments SUMMARY OF CAPITAL INVESTMENTS TO BE CARRIED OUT BY KAPSABET NANDI WATER AND SANITATION COMPANY LIMITED FOR THE PERIOD 2023/24 – 2025/26 2023/2024 2024/202 2025/2026 A. Non-Revenue Water (NRW) Reduction 1. Consumer Metering (New Connections and Replacements) 2,190,000 3,000,000 3,200,000 2. Installation of Zonal Meters 170,000 500,000 850,000 3. Network Rehabilitation 813,590 3,867,180 4,955,080 Sub-Total 3,173,590 7,367,180 9,005,080 B. Construction of Buildings 1. Security house 150,000 2. Sanitation Block 200,000 3. Water Kiosk 500,000 Sub-Total 150,000 200,000 500,000 C. Purchase of Movable Assets (Administration) • Motor Vehicles 2,801,000 • Motorcycles (2 Per Annum) 586,350 586,350 586,350 • Office Furniture 575,000 375,000 225,000 • ICT Equipment 540,000 - 590,000 Sub-Total 1,701,350 961,350 4,202,350 Total 5,024,940 8,528,530 13,707,430 JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5166662 Water Services Regulatory Board.