GAZETTE NOTICE NO. 13175

under the powers granted by section 72 (1) (b) and (2) of the Water Act, 2016, has approved the regular tariff adjustment for the area served by Kisii Water and Sanitation PLC (KWASCO). Kisii Water and Sanitation PLC (KWASCO) applied to the Water Services Regulatory Board (WASREB) for a review of water services tariffs for the period 2026/2027 to 2028/2029, as per section 72(1) (b) of the Water Act 2016. Public consultation on the KWASCO application was carried out in accordance with the requirements of section 139 of the Water Act 2016. Having considered the application, the written and oral submissions by all stakeholders and the current data, WASREB has determined that an upward tariff review is justified for KWASCO to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions attached to the tariff. WASREB hereby gives a one-month notice from the date of this communication to all existing and potential customers of KWASCO that the structure of approved tariffs for water services for the three financial years 2026/2027, 2027/2028 and 2028/2029 shall be as follows: 3976 3976 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2026/2027 to 2028/2029 Customer Categories Consumption Block (m3) Approved Tariff (KSh./m3) Domestic/Residential 1-6 113 7-20. 135 21-50 151 51-100 180 101-300 200 >300 223 Multi Dwelling Units (MDUs) per m3 135 Commercial/Industrial 1-50 151 51-100 180 101-300 200 >300 223 Government/Institutions 1-50 151 51-100 180 101-300 200 >300 223 Public Schools, Colleges, and Universities 1-600 151 601-1200 185 >1200 223 Water Kiosks Per m3 70 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 2026/2027 to 2028/2029. 1.2.1 Consumers with a Water Connection (a) Sewerage will be charged at 75% of the water volumes, billed at the rates specified in (1.1) above for all customer categories. (b) Disconnected water accounts shall be charged on the average of the last three months’ sewerage charges before disconnection 1.2.2 Consumers without a water connection Sewerage consumers without a water connection shall be charged as follows: (i) Single dwelling domestic unit: KSh. 350 per month. (ii) 75% of the volume of water consumed as per the metered source of water at the rates specified (in 1.2.1(a)) above. 1.3 Indexation The utility’s approved tariffs for water and sewerage shall be eligible for annual indexation, as per the regulations of the Water Services Regulatory Board (WASREB). The inflation adjustment shall come into effect every July of the tariff period commencing July 2027. 1.4 Miscellaneous Charges These shall be as follows: Item/ Service Charge (KSh.) Water Deposit Category of consumer Domestic 2500 Retail shops less than 10 m3 3000 Retail shops with more than 10 m3 3,500 Bar and restaurants with less than 15 m3 4000 Bar and restaurants more than 15 m3 6,000 Hotel class “A” and “B” with less than 150 m3 12,000 Hotel class “A” and “B” with more than 150 m3 15000 Hotel class “C” and ‘D’ less than 150 m3 18000 Hotel class “C” and ‘D’ more than 150 m3 20,000 Hospitals and Health centres with more than 150 m3 20,000 Hospitals and Health centres with less than 150 m3 12,000 Schools and other institutions have more than 200 m3 20,000 Schools and other institutions with less than 200 m3 10,000 Minor construction sites of more than 200 m3 15,000 Major construction sites with more than 300 m3 50,000 Light industries with less than 200 m3 30,000 Medium industries between 200 m3 and 300 m3 50,000 Heavy industries of more than 300 m3 100,000 Water Kiosks 5,000 Customers with only a sewer connection are to be charged a deposit equivalent to a water connection Other Charges Service New water connection fee – Connection size: ½ inch to 1 inch 2,500 New water connection fee – Connection size: 1.5 inches to 3 inches 7,500 New water connection fee – Connection size above 3inches 15,000 Water Reconnection fee – at meter point 1,000 14th August, 2026 THE KENYA GAZETTE Item/ Service Charge (KSh.) Water Reconnection fee – at mains 5,000 and double deposit Tanker – 8000 & 16,000 litres 2,500 & 5,000, respectively, per tanker within the KWASCO service area for all consumers Sale of water per M3 at Browsing Point (own tanker) 135 Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 Special meter reading at the customer’s 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 Printing of the customer’s statement on their own request 200 For cutting off the supply at the request of the consumer 200 For turning on the supply other 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 illegality Illegal water connection (Fraud) – Domestic 30,000 plus estimated consumption during the period of the illegality Overcharging (fraud) at the water kiosk 15,000 Illegal sewer connection- Commercial, Industry, Construction 100,000 Illegal sewer connection- Domestic, Government, Schools, Universities & Colleges 30,000 Self-reconnection after cut-off for non-payment 5,000, and billing to be backdated from the date of the cut-off Surcharge for tampering with meters (this includes 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 Cost Structure 2.1 Cost Summary Below is the summary of the projected annual cost structure that makes up the total costs to be incurred by KWASCO during the tariff period: Expenditure Item 2024/25 2025/26 2026/27 2027/28 2028/29 Operations 239,837,638 209,919,409 230,140,208 242,795,732 254,818,727 Maintenance 16,314,781 16,314,781 16,314,781 16,314,781 16,314,781 Regulatory Levy 6,520,500 6,520,500 6,520,500 6,520,500 6,520,500 Total O&M Costs 262,672,919 232,754,690 252,975,489 265,631,013 277,654,007 Investment Costs 2,280,230 - 12,320,000 23,136,000 33,251,000 Debt Repayment - - 72,603,285 79,771,340 86,939,395 Total Costs 264,953,149 232,754,690 337,898,773 368,538,353 397,844,402 Total Billing (KSh) 267,179,046 189,417,602 355,191,274 388,143,094 420,089,259 Collection Efficiency (%) 95% 95% 95% 95% 95% Projected Revenue 254,968,964 179,946,722 337,431,710 368,735,939 399,084,796 O&M Cost Coverage (%) 97% 77% 133% 139% 144% Total Cost Coverage (%) 96% 77% 100% 100% 100% 3.0 Conditions attached to the tariff approval. The conditions attached to this approval, which shall form part of the license conditions of KWASCO are: 3.1 Service Delivery Conditions attached to the Tariff Target 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 Water Coverage 55.3% 56% 58% 60% 62% Water quality standards 99% 100% 100% Compliance with Standards Personnel Expenditure as % of O&M 40% 34% 32% 32% 32% Non-Revenue Water 56% 56% 45% 42% 39% Hours of Supply (Hrs.) 22 22 23 23 24 Staff per 1000 connections 7 7 7 6 6 Metering ratio 100% 100% 100% 100% 100% Collection Efficiency 95% 95% 95% 95% 95% Resale at Kiosk Kshs. 2.00 per 20l Jerry Can Kshs. 5.00 per 20l Jerry Can 3.2 Annual budgets: The utility shall adhere to the budgetary levels set in the tariff. 3.3 Surpluses: The surpluses projected to be realised shall be set aside to implement priority service delivery capital projects. KWASCO shall be required at the end of every financial year to identify the priority project to be implemented and obtain approval from WASREB. 3.4 Reporting: The utility shall submit quarterly performance reports to WASREB in the prescribed format. 3.5 Creation of distinct water and sewer cost centres: KWASCO shall create separate water and sewer cost centres and maintain a distinct record of operations of the two centres. 3978 3978 3.6 Catchment Protection: The utility shall undertake measures to conserve/ protect the catchment areas of their source of water as part of Corporate Social Responsibility. 3.7 Repayment of Loans: KWASCO shall remit monthly loan repayments to LVSWWDA for KfW Loans for the Water Sector Development Programme as detailed below. Item 2026/2027 2027/2028 2028/2029 Amount (KSh)/Month 6,050,274 6,647,612 7,244,950 Evidence of loan repayment to LVSWWDA shall be submitted to WASREB every month by the 10th day of the following month 3.8 Regulatory Levy: The utility is to pay a monthly regulatory levy based on 4% of turnover, which is inclusive of billing for other services and interest income earned. 3.9 Investments: The utility shall undertake the investments as shown in Appendix 1 below: - APPENDIX 1: INVESTMENTS SCHEDULE THROUGH INTERNALLY GENERATED FUNDS FOR KWASCO Targeted Investment Project Area Guide Size Unit Unit Cost Quantity 2026/2027 2027/2028 2028/2029 A. ICT & Motor Vehicles Computer Hardware Desktops 80,000 5 400,000 laptops 130,000 4 520,000 Multi-Function Printer 500,000 2 1,000,000 Projector 150,000 1 150,000 IP Phone for Customer Care Staff 25,000 1 25,000 IP Phone for other workstations Staff 10,000 8 80,000 Firewall 1,000,000 1 1,000,000 Sub -Total - - 3,175,000 Microsoft Office and Operating System 400,000 1 400,000 Time attendance - Zkteco Speedface V3L 100,000 1 100,000 Switch board - Yeastar 100,000 1 100,000 Veen software and cloud storage 500,000 1 500,000 LTE Router 400,000 1 400,000 Sub -Total - - 1,500,000 Motor Vehicle 10,000,000 2 5,000,000 5,000,000 Sub -Total - 5,000,000 5,000,000 B. NRW Reduction Plan (To reduce NRW from 58% to 45%) Installation of SMART Meters Installation of 63 Number prepaid SMAT Meters Nr 25,000 63 315,000 315,000 315,000 Installation of 410 new metered connections 5,500 410 451,000 451,000 451,000 Installation of 3000 consumer meters for new connections Nr 5,500 3,000 3,300,000 3,300,000 3,300,000 Installation of consumer meters Installation of 1000 consumer meters for replacement Nr 5,500 1,000 1,100,000 1,100,000 1,100,000 Installation of 200 consumer meters for flat rate conversion Nr 5,500 200 220,000 220,000 220,000 Installation of 2000 meters for activated dormant accounts Nr 5,500 2,000 2,200,000 2,200,000 2,200,000 Accreditation of meter testing bench by KENAS 1,000,000 1 200,000 200,000 200,000 Replacement of Master (production) meters Replacement of 1 master meters for Kegati 500mm Nr 200,000 1 200,000 Replacement of 1 master meters 400mm Nr 200,000 1 200,000 Replacement of 1 master meters 350mm Nr 150,000 1 150,000 Replacement of 4 master meters 300mm Nr 120,000 4 480,000 Replacement of 5 master meters 200mm Nr 100,000 5 500,000 Replacement of 15 master meters 150mm Nr 75,000 15 1,125,000 Replacement of 3 master 100mm Nr 50,000 3 150,000 14th August, 2026 THE KENYA GAZETTE Targeted Investment Project Area Guide Size Unit Unit Cost Quantity 2026/2027 2027/2028 2028/2029 meters Replacement of 1 master meters 80mm Nr 40,000 1 40,000 Sub -Total 7,786,000 7,786,000 10,631,000 DN 80, PN 16 Volumetric Flow Water Meter 150mm Nr 29,900 2 59,800 DN 100, PN 16 Volumetric Flow Water Meter 100mm Nr 49,900 5 249,500 DN 150, PN 16 Volumetric Flow Water Meter 90mm Nr 74,900 3 224,700 Map& GIS Purchase of pressure loggers 20,000 20 400,000 Implement Geographical Information System (GIS) 600,000 1 Procurement of the Geographical Information System (GIS) 1,350,000 1 1,350,000 Smart phones for mapping (mapper) Nr 200,000 10 - A3 printer 1 - Autodesk &Licence 1 - Active leak detection activities NRW Reduction Activities Purchase of leak detection equipment 2,000,000 1 - Pipe locator 1,000,000 1 - Sub -Total 534,000 1,750,000 - C. Water System Extension Pro-poor Initiatives (Low Income Areas) Infrastructure Development: Kshs. 1.5 million for the activation of water kiosks, expansion of pipeline networks, and prepaid metering systems in low- income areas. 1,500,000 - Tariff Subsidies: Kshs. 0.6 million to support subsidized connection fees and flexible payment plans for vulnerable households. 600,000 Community Engagement and Capacity Building: Kshs. 0.3 million for awareness campaigns, training programs, and establishing community water committees. 300,000 Monitoring and Compliance: Kshs. 0.15 million for performance audits, reporting, and regulatory compliance activities. 150,000 Emergency and Contingency Fund: Kshs. 0.15 million reserved for emergency interventions in case of water shortages or infrastructure failures in low-income areas. 150,000 Sub -Total - 2,700,000 - Expansion of water supplies to underserved areas Planning and design, Environmental Impact Assessment and stakeholders’ engagement - Tabaka, - 200,000 - 2,700,000 200,000 3980 3980 Targeted Investment Project Area Guide Size Unit Unit Cost Quantity 2026/2027 2027/2028 2028/2029 Ogembo, Gesusu, Nyansiongo and Ikonge D. Water System Rehabilitation Rehabilitate water production facilities Water Facilities Rehabilitation (10) Pump set and control panels at Tabaka 1,500,000 Pump house at Nyasiongo 500,000 Still well at Nyasiongo 500,000 Upgrade of springs 1,000,000 Fencing of springs 500,000 Sub Total 4,000,000 2,700,000 400,000 E. Sewer Improvement Construction of VIP Ablution Blocks Mwembe, Jogoo, Nyanchwa and Nyamataro 1,500,000 Wastewater Facilities Rehabilitation Suneka treatment works, 1,500,000 Public Sensitization on Hygiene Mwembe, Jogoo, Nyanchwa and Nyamataro 200,000 Sub Total - - 3,200,000 - F. Capital Works 12. Enhance Internal Efficiencies - Upgrade enterprise resource planning (ERP) system 1 9,520,000 Sub Total - - - 9,520,000 G. Treatment Works Laboratory Equipment Spectrophotometer (HACH; Dr 3900) 1,700,000 Bacteriological Testing kit (Wag tech) 500,000 TDS/Conductivity Meter 100,000 PH Meter 10,000 Oven 50,000 Analytical Weigh Balance 150,000 Cooler Box 15,000 lab apparatus 500,000 Sub Total - - 3,025,000 Grand Total 12,320,000 23,136,000 33,251,000 Dated the 14th August, 2026. RICHARD CHERUIYOT, Ag. Chief Executive Officer, MR/8284338 Water Services Regulatory Board.