GAZETTE NOTICE NO. 11271

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 TAWASCO 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 TAWASCO 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 (flat rate) 600 7-20. 110 21-50 120 51-100 130 101-300 140 >300 150 3686 3686 Customer Category Consumption Block in M³ Approved Tariff (KSh./M3) Commercial/Industrial/ Government/ Institutions 1-6 (flat rate) 650 7-50 150 51-100 165 101-300 170 >300 180 Schools, Universities and Colleges 1-6 (flat rate) 650 7-600 120 600<1200 130 >1200 140 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 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 Sale of water per m3 at bowsing point (own tanker) 150 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 25th August, 2023 THE KENYA GAZETTE 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 TAWASCO during the tariff period: Expenditure Item 2023/2024 2024/2025 2025/2026 Operations 57,365,548 60,923,440 64,476,634 Maintenance 8,437,208 8,605,952 8,778,071 Regulatory Levy (WASREB) 1,549,870 1,580,868 1,612,485 Investments 2,756,960 8,932,250 8,610,450 Total Costs 71,945,837 82,245,240 85,883,562 Total Billing (KSh.) 73,952,268 84,566,571 91,147,246 Collection Efficiency (%) 80% 85% 90% Projected Revenue 59,161,814 71,881,585 82,032,522 Subsidy from County Government 13,977,329 14,097,103 7,218,074 Total Projected Revenue including Subsidy 73,139,144 85,978,688 89,250,595 Total Cost Coverage without Subsidy 82% 87% 96% Total Cost Coverage with Subsidy 102% 105% 104% 3.0 Conditions attached to the tariff approval. The conditions attached to this approval which shall form part of the license conditions of Tana River Water and Sewerage Company are: (i) Service Delivery Conditions attached to the Tariff. Target 2023/2024 2024/2025 2025/2026 Water Coverage (%) 24% 25% 26% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O and M 32% 31% 30% Non-Revenue Water 70% 65% 62% Metering ratio (%) 100% 100% 100% Collection Efficiency (%) 80% 85% 90% Resale at Kiosk Kshs. 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 approved tariff. (iii) Surplus: Any surpluses realized shall be used on priority infrastructure projects identified by TAWASCO and Approved by WASREB. (iv) Metering: TAWASCO shall progressively enhance metering ratio to attain 100% as per condition (i) above. (v) Bulk Tariff payment for Bura Scheme: The WSP will pay the bills for the bulk water abstracted from the Bura Scheme on a monthly basis to ensure continuity of service. (vi) Subsidy (a) The County Government of Tana River will support the WSP in payment of salaries for seconded personnel as outlined below. 2022/2023 2023/2024 2024/2025 2025/2026 Operational Subsidy from the County Government of Tana River 11,858,742 13,977,329 14,097,103 7,218,074 (vii) Recruitment of Staff: The County Government of Tana River will support the competitive recruitment of staff in the WSP, for positions currently held by seconded personnel from the County Government. (viii) Reporting: The utility shall submit to WASREB a quarterly tariff performance report in the prescribed format. WASREB will carry out tariff implementation review at the end of each year of implementation. (ix) Investments: The utility shall undertake the investments in Annex 1 and submit quarterly progress report. Annex 1 INVESTMENTS SUMMARY FOR TANA RIVER WATER AND SEWERAGE COMPANY LIMITED Theme 1: Metering Investments Specification Unit Qty Unit Cost 2023/2024 2024/2025 2025/2026 Master Meters (All Schemes) Supply & fix 2" Master meters complete with required fittings Pcs 5 55,000 275,000 - - Supply & fix 3" Master meters complete with required fittings Pcs 1 65,000 65,000 - - Supply & fix 4" Master meters complete with required fittings Pcs 1 85,000 85,000 - - Supply & fix 6" Master meters complete with required fittings Pcs 4 155,000 620,000 - - Supply & fix 8" Master meters complete with required fittings Pcs 1 220,000 220,000 - - Supply & fix 14" Master meters complete with required fittings Pcs 1 280,000 280,000 - - Supply & fix 16" Master meters complete with required fittings Pcs 1 320,000 320,000 - - 3688 3688 INVESTMENTS SUMMARY FOR TANA RIVER WATER AND SEWERAGE COMPANY LIMITED Theme 1: Metering Investments Specification Unit Qty Unit Cost 2023/2024 2024/2025 2025/2026 Sub-Totals 1,865,000 - - Other Connections Commercial Meters (¾”) Pcs 31 4,020 124,620 - - Government Institutions (¾”) Pcs 60 4,020 241,200 - - Government Institutions (2”) Pcs 18 13,700 246,600 - - Schools (¾”) Pcs 20 4,020 80,400 - - Schools (2”) Pcs 3 13,700 41,100 - - Kiosks (2") Pcs 2 4,020 8,040 - - Sub-Totals 741,960 - - Domestic Connections Domestic (¾”) - Half in FY 2024/2025 and the remaining Half in 2025/2026 Pcs 222 4,020 - 4,472,250 4,472,250 Sub-Totals - 4,472,250 4,472,250 Theme 2: Water System Upgrading Upgrading of Ngao Rising Main Upgrading of Ngao Rising Main From 3” to 6" LM 450 4,418 - - 1,988,200 Sub-Totals - - 1,988,200 Theme 3: Movable Assets Motorcycles 5No. 125cc Pcs 5 150,000 150,000 300,000 300,000 Sub-Totals 150,000 300,000 300,000 Theme 4: Pumps Pump plus accessories Supply and fix a motor and pump coupled on the same base plate capable of supplying 100cum/hr against a head of 155m. Allow for necessary star-delta control panel, cables etc at Hola Scheme No 1 1,850,0 1,850,000 Sub-Totals - - 1,850,000 Theme 5: Billing System 1: Preliminary and General Items Supply Computers with a RAM 8 or above No. 6 60,000 360,000 Supply of computer as a server No. 1 200,000 200,000 Allow for necessary linking and networking item 1 200,000 200,000 Allow for consultancy services in forming TAWASCO strategic plan. Allow for necessary packaging and presentation in both hard and soft copies item 1 1,000,0 1,000,000 2: Installation of Billing software Allow programming, supply and installation of a water billing system item 1 2,400,0 2,400,000 Sub-Totals - 4,160,000 - Total Investments 2,756,960 8,932,250 8,610,450 Dated the 27th July, 2023. JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5166662 Water Services Regulatory Board.