Kisumu Water and Sewerage Company Limited

"Improving the Quality of Life"

GAZETTE NOTICE - TARIFFS

Published:

THE WATER ACT
(No. 8 of 2002)
PUBLIC CONSULTATION ON REGULAR TARIFF REVIEW FOR KISUMU WATER AND SEWERAGE COMPANY LIMITED: CHANGE OF CLOSING DATE TO 29th AUGUST 2016

Reference is made to Gazette notice No. 5896 published on the 29th July 2016.

NOTICE is given to the general public in the area of Lake Victoria South Water Services Board, (LVSWSB), that LVSWSB which has a license to provide efficient and economical water services in the County of Kisumu, among other seven Counties, has applied to the Water Services Regulatory Board for a tariff review for its agent, Kisumu Water and Sewerage Company Ltd (KIWASCO) for the period 2016 to 2019. Kisumu Water and Sewerage Company serve the areas within Kisumu City.

Lake Victoria South Water Services Board proposes an upward tariff review to enable Kisumu Water and Sewerage Company to attain full cost recovery, undertake minor investments and meet conditions for improving service delivery.

Lake Victoria South Water Services Board proposes to adopt rising block tariffs for all consumer categories except water kiosks.

Details of the current tariff and the proposed tariff can be obtained from www.lvswaterboard.go.ke or at Kisumu Water and Sewerage Company Offices, Nafaka House along Oginga Odinga Street, Kisumu.

Written comments on improvements on service delivery and/or justified objections to the upward tariff review should be addressed to the Chief Executive Officer, Lake Victoria South Water Services Board P.O Box 3325, Kisumu or through email to info@lvswaterboard.go.ke.

The closing date for such comments has been extended from 22nd August 2016 to 29th August, 2016.
Dated the 8th August, 2016.

MR. CHRISPINE O. JUMA, HSC,
Ag.Chief Executive Officer,
Lake Victoria South Water Services Board.

ANNEX 2
DETAILS OF KISUMU WATER AND SEWERAGE COMPANY LIMITED REGULAR TARIFF APPLICATION (2016/17 to 2018/19)

  1. Expenditures

    Expenditure Item 2015/16 2016/17 2017/18 2018/19
    Operations & maintenance 431,606,574 449,354,443 480,292,105 510,685,874
    Regulatory Levy 5,032,519 7,083,033 7,624,221 9,055,986
    WSB Administration Cost 53,484,510.33 55,689,947.68 53,297,553.44 47,568,170.66
     Minor Investments 29,531,688 27,747,475 27,846,342 26,760,259
    Loan Repayment (OBA loans and AFD loan) 171,600,250.46 168,071,173.54 194,103,221.62 213,015,022.69
     Total Costs 691,255,542 707,946,072 763,163,443 807,085,312
    Projected Rev. (KShs) 601,355,926 739,803,615 799,423,142 851,262,675
    O&M Cost Coverage (%) 87% 104% 105% 105%
  2. Proposed increase in Water Tariff Structure for 2016/17 to 2018/19

    Type of customer Proposed Tariff increase Per (M3)
    Residential Minimum: KShs.10, Maximum KShs 20
    Commercial/ Industrial/ Government institutions Minimum: KShs.15, Maximum KShs 50
    Standpipes/Kiosks KShs. 0
    Public schools, Universities & colleges Minimum: KShs.10, Maximum KShs 50
    Bulk Sales KShs. 0
  3. Miscellaneous Charges

    These shall be charged as per the approved miscellaneous charges approved by WASREB.
  4. Service Delivery Conditions attached to the Tariff

    Target 2015/16 2016/17 2017/18 2018/19
    Water Coverage 70% 73% 76% 79%
    Non Revenue water 40.5% 37% 35.6% 33.83%
    Water quality standards 100%
    Hours of Supply 24 24 24 24
    Metering ratio 100% 100% 100% 100%
    Collection Efficiency 94% 94% 94% 94%
    Resale at Kiosk Ksh. 2 per 20 ltrs jerrycan
  5. Other Conditions

    • Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff.
    • Loan Repayment: KIWASCO shall remit on a monthly basis, equal instalments for the semi annual loan repayments for the AFD loan.The annual cumulative loan repayment shall be as hereunder:
      2015/16 2016/17 2017/18 2018/19
    Annual cumulative loan repayment (Million Ksh) 166.7 163.1 183.9 204.1