GAZETTE NOTICE NO. 4494

pursuant to Section TA inches 250 73(5) of the Water Act 2002 approved a Regular Tariff increase for 2 inches 250 water tariffs for Nakuru Rural Water and Sanitation Company 3 inches 450 (NARUWASCO) 4 inches 800 By extension therefore, Rift Valley Water Services Board hereby 6 inches 1,250 gives a one (1 month) notice to all existing and potential water 8 and above 2,000 customers of NARUWASCO that the current tariffs have been Water Deposit adjusted upwards and the new tariffs will come into effect 30 days Domestic 2,500 from the date of this notice. Retail shops more than 10m3 3,500 Water Tariff Structure for the period 2016/17 to 2020/2 Pats, restaurants more than ome an $00 Hotel class ‘C’ and ‘D’ more than 150 m3 20,000 Type of Customer Approved (KSh./M3) Hospitals more than 150m3 20,000 Domestic/Residential Health centers less than 150 m3 12,000 Consumption Block in m3 Schools and other institutions more than 200m3 __[ 20,000 0-6 (Flat rate) 300 Schools and other institutions less than 200m3 __| 10,000 7-20 74 Minor construction sites between 200m3 and 15,000 21-50 85 300M3 51-100 100 Major construction site more than 300m3 50,000 101 — 300 120 | Light industries less than 200m3 30,000 > 300 140 Medium industries between 200m3 to 300m3 50,000 Commercial / Industrial Heavy industries more than 300m3 100,000 Consumption Block in M3 Water Kiosks 5,000 0-6 (Flat rate) 330 Other Charges 7-20 79 New Water Connection Fee 2,500 21~50 90 Reconnection fee - at meter point 1,000 51-100 105 101-300 125 Reconnection fee - at mains 5,000 and double deposit > 300 _ 145 Illegal connection - Commercial, 100,000 plus estimated Government Institutions - Industry, Construction ( Fraud) consumption during the Consumption Block in M3 period of the illegali 0-6 (Flat rate) 330 Illegal connection - Domestic ( Fraud) | 30,000 plus estimated 7-20 719 consumption during the 21-50 90 period of the illegality 51-100 105 Tanker - 8000 ; 16,000 litres 2,500 ; 5,000 respectively 101 - 300 125 per tanker within > 300 145 Naruwasco area for all Schools consumers Consumption Block in M3 Replacement of stolen or damaged 100% of the market cost of < 600 710 meters the meter 600 — 1200 80 Meter testing on request 100 > 1200 90 Leak detection services 1,000 Bulk Supply 40 Exhauster services (Company 4,000 for informal Water Kiosks 35 exhauster) settlements and 5,000 for Resale at Kiosk Ksh 1 per 20 litre container other customers Miscellaneous Charges Analysis of Cost Structure Below is the summary of the cost structure that makes up the total costs incurred by Nakuru Rural Water and Sanitation Company: Expenditure Item 2016/17 2017/18 2018/19 2019/20 2020/21 Operations 162,612,470 173,763,665 184,445,571 195,754,562 197,978,663 Maintenance 9,975,000 10,473,750 10,997,438 11,547,309 12,124,675 Regulatory Levy 2,711,197 3,092,456 3,312,932 3,407,988 3,573,299 WSB Administrative fee 30,880,383 33,103,116 30,631,352 31,510,242 33,038,701 Minor Investments 13,311,000 22,770,000 36,950,000 37,400,000 53,380,000 Loan Repayment 12,018,300 17,682,776 15,678,031 14,405,929 14,405,929 Total Costs 231,508,350 260,885,763 282,015,324 294,026,031 314,501,267 Total Billing ( Kshs) 271,119,707 309,245,581 331,293,202 340,798,834 357,329,867 Collection Efficiency (%) 85 85 87 90 92 Projected Revenue 230,451,751 262,858,744 288,225,086 306,718,951 328,743,478 Cost Coverage 100% 101% 102% 104% 105% THE KENYA GAZETTE 12th May, 2017 2125 Conditions attached to the tariff approval Service Delivery Targets: Target 2016/17 2017/18 2018/19 2019/20 2020/21 Water Coverage (%) 35 40 45 50 55 Water Quality Standards 100% compliance with the quality standards Non-Revenue Water (%) 57.3 50.2 44 42.1 38.8 Hours of Supply (Hrs) 12 13 14 15 16 Staff per 1000 connections 8 7 7 6 5 Metering Ratio (%) 37 47 57 67 75 Collection Efficiency (%) 85 85 88 91 93 Resale at Kiosk Regulate resale by kiosk vendors at Kshs 1 per 20 litres. Tariffs at kiosks must be displayed at strategic points for public awareness. Investments The utility shall undertake the following investments during the tariff period and also submit quarterly progress reports to the Rift Valley Water Services Board and WASREB on the same. 1, Bulk and Zonal Metering Target Area Size No |Estimatedcost |2016/17 | 2017/18 2018/19 2019/20 2020/21 Bulk meters | Turasha 24 1 1,500,000 1,500,000 (Production |Nguso 12 1 1,200,000 1,200,000 meters) Rongai South 6 1 300,000 300,000 Bahati Chania 6 1 300,000 300,000 Shell Borehole — Njoro 2 1 130,000 130,000 ; Golf Club borehole - Njoro_|3 1 200,000 200,000 Master Langalanga 8 1 600,000 meters (Zonall Gilgil 3 5 1,000,000 400,000 400,000 200,000 meters Salgaa 6 1 300,000 300,000 Salgaa 4 2 480,000 480,000 | Salgaa 12 1 1,200,000 1,200,000 Molo 8 2 1,200,000 600,000 600,000 Njoro 8 1 600,000 600,000 Njoro 10 1 1,000,000 1,000,000 | 10,010,000 2,700,000 {| 2,530,000 2,380,000 1,200,000 600,000 2. Consumer Meters Sizeof |No Estimated cost | 2016/17 2017/18 2018/19 2019/20 2020/21 meter New connections 1 1,500 3,750,000 500,000 1,250,000 750,000 1,000,000 250,000 New connections 1 10 35,000 35,000 ; New connections 1 5 35,000 35,000 Total 3,820,000 570,000 1,250,000 750,000 1,000,000 250,000 Re-connection (Replacements) | 1 2,000 5,000,000 500,000 1,000,000 1,500,000 1,500,000 500,000 Re-connection (Replacements) | 1 2 7,000 7,000 Re-connection (Replacements) | 1 2 14,000 14,000 Total 5,021,000 521,000 1,000,000 1,500,000 1,500,000 500,000 Conversion from flat rate 1 5,000 12,500,000 2,500,000 2,500,000 2,500;000 2,500,000 2,500,000 Conversion from flat rate 1 10 35,000 : Conversion from flat rate 1 5 35,000 Total 12,570,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Valves and fittings 6,500,000 $00,000 2,000,000 2,000,000 2,000,000 Grand Total 8,534 37,921,000 6,291,000 7,780,000 9,130,000 8,200,000 5,850,000 3. Rehabilitation of Pipeline and new networks extensions Area Sizeof |No Estimated cost| 2016/17 2017/18 2018/19 2019/20 2020/21 meter (KSh.) Eastern 3” 10 3,000,000 200,000 300,000 600,000 900,000 1,000,000 Eastern 2’ 15 3,000,000 200,000 200,000 900,000 900,000 800,000 | Eastern 1” 25 2,250,000 200,000 300,000 500,000 500,000 750,000 Total 8,250,000 600,000 800,000 2,000,000 2,300,000 2,550,000 Northern 3” 10 3,000,000 500,000 600,000 900,000 1,000,000 Northern 2” 15 3,000,000 600,000 900,000 700,000 800,000 Northern 1” 20 1,800,000 700,000 500,000 100,000 500,000 Total 7,800,000 1,800,000 2,000,000 1,700,000 2,300,000 Central 3” 10 3,000,000 100,000 300,000 800,000 800,000 1,000,000 Central 2” 15 3,000,000 100,000 800,000 800,000 800,000 500,000 Central 1” 20 1,800,000 100,000 1,000,000 400,000 200,000 100,000 Total 7,800,000 300,000 2,100,000 2,000,000 1,800,000 1,600,000 Western 3” 10 3,000,000 100,000 200,000 900,000 900,000 900,000 Western 2” 15 3,000,000 200,000 300,000 900,000 800,000 800,000 Western 1” 20 1,800,000 100,000 400,000 $00,000 500,000 | 300,000 Total 7,800,000 400,000 900,000 2,300,000 2,200,000 2,000,000 Southern 3” 10 3,000,000 100,000 300,000 800,000 1,000,000 800,000 Area Sizeof |No Estimated cost} 2016/17 2017/18 2018/19 2019/20 2020/21 meter (KSh.) Southern 2” 15 3,000,000 100,000 400,000 800,000 900,000 800,000 Southern 1” 20 1,800,000 100,000 300,000: 500,000 500,000 400,000 Total 7.800,000 300,000 1,000,000 2,100,000 2,400,000 2,000,000 Grand total 39,450,000 1,600,000 _| 6,600,000 10,400,000 10,400,000 10,450,000 (i) Annual Budgets: The WSP shall adhere to the budgetary levels set in the tariff. (ii) Bulk Agreements: All existing and future bulk sales of water shall be supported by bulk sale agreement/s issued by WASREB. (iii) NRW reduction plan: The WSP shall submit a NRW reduction plan before the tariff is approved for gazettment. (iv) Performance Evaluation: Performance targets to be met and ascertained by WASREB, at the end of the Ist year of the tariff period. Non achievement of the set targets without justifiable cause shall lead to penalty. (v) SPA Revision: The clause on tariffs and licensee remuneration levy which is the equivalent of Clause 9 of the Model Service Provision Agreement (SPA) on “Tariffs, Remuneration and Financial Arrangements”, shall be amended to conform with the approved tariffs: The agent shall remit fixed annual payments to Licensee, which shall be paid on equal monthly rates, at the end of respective months according to the amount in section 3. (vi) Regulatory Levy: The WSP shall remit the regulatory levy on monthly basis being 1% of the billing as per Legal Notice No. 36 of 2008.Arrears of the levy shall be paid up before approval of the gazette notice of the tariff. (vii) Loan Repayment: NARUWASCO shall immediately establish a standing order with RVWSB where it shall remit on monthly basis, equal installments for the semi - annual repayments. 2016/17 2017/18 2018/19 2019/20 2020/21 Loan Repayment Amount 12,018,300 17,682,776 15,678,031 14,405,929 14,405,929 Dated the 26th April, 2017. JAPHETH MUTAI, Chief Executive Officer, Rift Valley Water Service Board. Approved ROBERT GAKUBIA, Chief Executive Officer, MR/3429115 Water Services Regulatory Board.