ANNEX 2

DETAILS OF HOMABAY COUNTY WATER & SEWERAGE COMPANY LTD

(HOMAWASCO)

REGULAR TARIFF APPLICATION (2021/2022 to 2023/2024)

 

  1. Cost and Revenue Structure for the Tariff Period

 

Expenditure Item 2020/2021 2021/2022 2022/2023 2023/2024  
Operations ((KSh.)         85,667,000         91,744,697         98,305,713       105,392,159
Maintenance (KSh.)           4,667,673           5,661,940           5,890,581           6,401,087
Regulatory Levy (KSh.)           2,264,369           2,793,866           3,685,008           4,973,467
Other Levies/Fees (KSh.)              564,358              575,645              819,282           1,129,715
Investments (KSh.)           3,413,257           1,636,413           3,194,223           3,403,000
Debt Repayment                       –                       –                       –                       –
Total Costs (Ksh.)         96,576,657       102,412,561       111,894,808       121,299,428
Total Billing (KSh.)         67,392,000         69,846,645         92,125,198       124,336,682
Collection Efficiency (%) 78% 81% 85% 88%
Projected Revenue (KSh.) 52,565,760 56,575,783 78,306,419 109,416,281
Cost coverage without Subsidy 54% 55% 70% 90%
Proposed Subsidy – County Government of Homabay (KSh.) 65,872,523 45,836,778 33,588,389 11,883,147
Cost coverage with Subsidy 82% 100% 100% 100%

 

 

  1. Recommended Water Tariff Structure for 2021/2022, 2022/2023 and 2023/2024
Customer Category Proposed Tariff
Domestic/Residential Consumption Block(m3)  Tariff

(Kshs.)
  1-6 45
  7-20 70
  21-50 90
  51-100 110
  101-300 130
Multi Dwelling Units (MDUs) /Gated Communities Flat Rate 70
     
Commercial/Industrial Consumption Block(m3)  Tariff

(Kshs.)
  1-50 85
  51-100 104
  101-300 130
  >300 169
     
Government Consumption Block(m3)  Tariff

(Kshs.)
  1-50 85
  51-100 104
  101-300 130
  >300 169
     
Schools/ Colleges/Universities Consumption Block(m3)  Tariff

(Kshs.)
  1-600 50
  601-1200 65
  >1200 90
Bulk supply to Water Kiosks Flat Rate 35

 

  1. Miscellaneous Charges

These shall be charged as per the approved miscellaneous charges approved by WASREB.

 

  1. Service Delivery Conditions attached to the Tariff

 

Target 2020/21 2021/22 2022/23 2023/24
Water Coverage 42% 45% 48% 51%
Sewerage Coverage 3% 4% 4% 5%
Water quality standards 79% 100% compliance
Non- Revenue Water 52% 51% 50% 48%
Hours of Supply (Hrs) 7 10 13 15
Maintenance/O&M 5% ≥6% ≥7% ≥8%
Personnel Expenditure as % of O&M Costs 34% 33% 32% 31%
Staff per 1000 connections              18              16              12              10
Metering ratio 100%
Collection Efficiency 78% 81% 85% 90%
Resale at Kiosk Regulate resale by kiosk vendors at Ksh. 2 per 20-litres. Tariffs at kiosks must be displayed at strategic points for public awareness

 

 

  1. Proposed Subsidy

The proposed subsidy for the tariff period will enable the utility meet its electricity costs.

  2021/2022 2022/2023 2023/2024
Proposed Subsidy (Ksh.) Proposed Subsidy (Ksh.) Proposed Subsidy (Ksh.)
Homabay County                     45,836,778                     33,588,389                     11,883,147

 

 

 

  1. Other Conditions
  2. Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff.
  3. Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided.
  • Investments: The utility shall undertake the following investments (listed below) within the tariff period and submit progress reports on a quarterly Basis.
  1. Subsidy from County Government of Homabay – The subsidy will be performance – based incentive which gradually reduces over the tariff period as the WSP increases efficiencies in operations.

 

 

 

Annex 1

 

HOMABAY COUNTY WATER AND SEWERAGE CO. LTD
PROPOSED INVESTMENTS USING INTERNALLY GENERATED FUNDS
2021/2022, 2022/2023 and 2023/2024
No. TARGETTED OUTCOMES PROJECT UNITS TOTAL

KSH.

 2021/22

(KSh.)

 2022/23

(KSh.)

 2023/24

(KSh.)
1 Increased access through extension of networks Rang’wena Pri. School to Lela Beach Sub Main (400m), Kodoyo Tank to Sofia Centre Sub Main (300m) and Kodoyo to Rabuor Masawa Sub Main (200m) Lot       551,963              –       551,963                –
Homa Bay Sewerage Lot       567,260              –       567,260                –
Ragama to Masogo Line (950) and Winimum Hotel to Oyugis Police Line (550) Lot       723,200      723,200                –                –
Mjini to Maguti Line (1.55km) Lot       663,213      663,213                –                –
Suba Suba South CDF to Sindo Town (1.65km) Lot       607,500              –                –       607,500
West Karachuonyo Scheme Lot       687,500              –                –       687,500
Mbita Bridge to Rusinga Line (700m) and Kombe to Kisui Line (800m) Lot       674,500              –                –       674,500
2 Non – Revenue Water Reduction New Bulk Meter (Production meters) 2       300,000      150,000       150,000                –
New Bulk Meter (Production meters) 3       300,000      100,000       100,000       100,000
3 Enhanced Operational Efficiency Office Equipment & Furniture Sum     1,658,500              –       325,000     1,333,500
4 Improved Billing Efficiency Upgrading of the M@jics Billing System Lot     1,500,000              –     1,500,000                –
    GRAND TOTALS      8,233,635   1,636,413    3,194,223    3,403,000