GAZETTE NOTICE NO. 13177

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 Murugi Mugumango Water Society. Murugi Mugumango Water Society 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 Murugi Mugumango Water Society’s 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 Murugi Mugumango Water Society 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 Murugi Mugumango Water Society 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: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2026/2027 to 2028/2029 Consumer Categories Consumption Block Approved Tariff (m3) (KSh/M3) Domestic/Residential 1-6 25 7-20 30 21-50 35 51-100 40 >100 50 Multi- Dwelling Units 30 Commercial/Industrial 1-50 30 51-100 40 >100 50 Government/Institutions 1-50 30 51-100 40 >100 50 Public Schools, Colleges, and Universities 1-600 30 3986 3986 Consumer Categories Consumption Block Approved Tariff (m3) (KSh/M3) 601-1200 40 >1200m3 50 Unique Consumer Categories (Water Kiosks) Water Kiosks 30 Customers with non-functional meters shall be billed based on the average of the last three months’ bills. 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 10m3 3000 Retail shops with more than 10m3 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’, with 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 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 Water Reconnection fee – at mains 5,000 and double deposit Tanker – 8000 & 16,000 litres 2,500 & 5,000, respectively, per tanker within the WSP area for all consumers Sale of water per M3 at Browsing Point (own tanker) 30 Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 Leak detection services 1,000 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 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 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 Murugi Mugumango Water Society during the tariff period: Proposed Tariff for Murugi Mugumango Water Society Expenditure Item 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 Operations 23,010,488 28,994,875 31,589,648 32,284,415 32,995,560 Maintenance 219,716 3,200,000 3,264,000 3,329,280 3,395,866 14th August, 2026 THE KENYA GAZETTE Proposed Tariff for Murugi Mugumango Water Society Expenditure Item 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 Regulatory Levy 781,479 1,024,259 2,259,009 2,358,489 2,457,983 Total O&M Costs 24,011,683 33,219,134 37,112,657 37,972,183 38,849,408 Investment Costs - - 14,088,000 14,186,000 14,009,800 Debt Repayment - - - - - Total Costs 24,011,683 33,219,134 51,200,657 52,158,183 52,859,208 Total Billing (KShs) 19,298,633 25,606,465 56,033,967 58,512,142 60,990,494 Collection Efficiency (%) 117% 95% 95% 95% 95% Projected Revenue 22,579,401 24,326,142 53,232,268 55,586,535 57,940,969 O&M Cost Coverage 94% 73% 143% 146% 149% Total Cost Coverage 94% 73% 104% 107% 110% 5.0 Conditions attached to the tariff approval. The conditions attached to this approval, which shall form part of the license conditions of Murugi Mugumango Water Society are: 5.1 Service Delivery Conditions attached to the Tariff Target 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 Water Coverage 65% 66% 67% 68% 69% Water quality standards 20% 20% 100% Compliance with Standards Personnel Expenditure as % of O&M 56% 34% 33 33% 33% Non-Revenue Water 59% 57% 55% 53% 51% Hours of Supply (Hrs.) 24 24 24 24 24 Staff per 1000 connections 5 5 5 5 5 Metering ratio 95% 95% 100% 100% 100% Collection Efficiency 117% 95% 95% 95% 95% Resale at Kiosk KSh. 2.00 per 20l Jerrycan 5.2 Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. 5.3 Surpluses: The surpluses realised during the tariff period shall be used to implement priority service delivery capital projects approved by WASREB 5.4 Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided. 5.5 Catchment Protection: The utility shall undertake measures to conserve/ protect the catchment areas of their source of water as part of Corporate Social Responsibility 5.6 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. 5.7 Investments: The utility shall undertake the investments in Appendix 1: 4. Penalty notice 4.3 Take note that failure of an Accounting Officer to administer this tariff and the conditions attached to it is an offence subject to section 196 (2) of the Public Finance Management Act 2012, 117 (1) (aa) of the County Governments Act 2012, Sections 147 and 158 of the Water Act 2016, and Regulations 46 (1), 101 and 105 of the Water Services Regulations 2025. 4.4 Failure to comply with the tariff and conditions attached to it amounts to a breach of licence conditions and shall attract sanctions pursuant to section 92 of the Water Act 2016, including: (i) Payment of a penalty (ii) Suspension or cancellation of the licence. (iii) Placement of the utility under Special Regulatory Regime. (iv) Prosecution. Appendix 1: Investments through internally generated funds by Murugi Mugumango Water Society FY 2026 2027 Specific Asset Descriptions Area Unit Unit Cost Quantity Project Cost (KSh.) a) Zonal meters Master Meter - Multi Jet DN 50mm Class C Wiru branch line No 22,000 3 66,000 Master Meter - Multi Jet DN 32mm Class C Mwema Munga branch line No 18,000 4 72,000 b) Motorcycles Motorcycles 150CC No 150,000 3 450,000 c) Replacement / New Connections Multi Jet DN 15mm Class C Whole Service Area No 4,500 3,000 13,500,000 Total 14,088,000 FY 2027 2028 Specific Asset Descriptions Area Unit Unit Cost Quantity Project Cost (KSh.) a) Pipeline OD 160mm PN 12.5 HDPE Mwiria M 2,310 2,500 5,775,000 3988 3988 Specific Asset Descriptions Area Unit Unit Cost Quantity Project Cost (KSh.) pipes to be laid from Baragu Tank to Mwiria Tank OD 110mm PN 12.5 HDPE Pipes to be laid from Igwanjau Tank to Kibura Tank Kibura M 1,067 3,000 3,201,000 OD 90mm PN 10 HDPE Pipes for Distribution Kibura to Ikumbo Market Ikumbo M 880 3,100 2,728,000 OD 32mm PN 8 HDPE pipes for Distribution - Ikumbo Market to Othaini Polytechnic Othaini M 94 3,200 300,800 OD 32mm PN 8 HDPE pipes for Distribution - Ikumbo Market and environs Ikumbo M 94 2,000 188,000 b) Production meter Master Meter - Multi Jet DN 300mm Class C Mutindwa main line No 380,000 1 380,000 Master Meter - Multi Jet DN 250mm Class C Kianjagi main line No 350,000 1 350,000 c) Transmission mainline Master Meter - Multi Jet DN 200mm Class C Karaa - baragu line No 320,000 2 640,000 Master Meter - Multi Jet DN 150mm Class C karaa - kiriani line No 300,000 2 600,000 d) Valves 80mm Sluice valve flanged Baragu No 12,000 2 24,000 TOTAL 14,186,800 FY 2028 2029 Specific Asset Descriptions Area Unit Unit Cost Quantity Project Cost (KSh.) a) Motor Vehicle Motor Vehicle 2800 cc No 5,000,000 1 5,000,000 b) Pipeline OD 160mm PN 12.5 HDPE pipes to be laid from Mwiria Tank to Igwanjau Tank Kanyambo M 2,310 3,900 9,009,000 TOTAL 14,009,000 Dated the 14th August, 2026. RICHARD CHERUIYOT, Ag. Chief Executive Officer, MR/8284338 Water Services Regulatory Board.