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 Item2020/20212021/20222022/20232023/2024 
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.)52,565,76056,575,78378,306,419109,416,281
Cost coverage without Subsidy54%55%70%90%
Proposed Subsidy – County Government of Homabay (KSh.)65,872,52345,836,77833,588,38911,883,147
Cost coverage with Subsidy82%100%100%100%
  • Recommended Water Tariff Structure for 2021/2022, 2022/2023 and 2023/2024
Customer CategoryProposed Tariff
Domestic/ResidentialConsumption Block(m3) Tariff (Kshs.)
 1-645
 7-2070
 21-5090
 51-100110
 101-300130
Multi Dwelling Units (MDUs) /Gated CommunitiesFlat Rate70
   
Commercial/IndustrialConsumption Block(m3) Tariff (Kshs.)
 1-5085
 51-100104
 101-300130
 >300169
   
Government Consumption Block(m3) Tariff (Kshs.)
 1-5085
 51-100104
 101-300130
 >300169
   
Schools/ Colleges/UniversitiesConsumption Block(m3) Tariff (Kshs.)
 1-60050
 601-120065
 >120090
Bulk supply to Water KiosksFlat Rate35
  • Miscellaneous Charges

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

  • Service Delivery Conditions attached to the Tariff
Target2020/212021/222022/232023/24
Water Coverage42%45%48%51%
Sewerage Coverage3%4%4%5%
Water quality standards 79%100% compliance
Non- Revenue Water 52%51%50%48%
Hours of Supply (Hrs)7101315
Maintenance/O&M5%≥6%≥7%≥8%
Personnel Expenditure as % of O&M Costs34%33%32%31%
Staff per 1000 connections             18              16              12              10 
Metering ratio 100%
Collection Efficiency 78%81%85%90%
Resale at KioskRegulate resale by kiosk vendors at Ksh. 2 per 20-litres. Tariffs at kiosks must be displayed at strategic points for public awareness
  • Proposed Subsidy

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

 2021/20222022/20232023/2024
Proposed Subsidy (Ksh.) Proposed Subsidy (Ksh.) Proposed Subsidy (Ksh.) 
Homabay County                    45,836,778                     33,588,389                     11,883,147 
  • Other Conditions
  • Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff.
  • 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.
  • 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 OUTCOMESPROJECTUNITSTOTAL KSH.2021/22(KSh.)2022/23(KSh.)2023/24(KSh.)
1Increased access through extension of networksRang’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 SewerageLot      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 SchemeLot      687,500              –                  –         687,500 
Mbita Bridge to Rusinga Line (700m) and Kombe to Kisui Line (800m)Lot      674,500              –                  –         674,500 
2Non – Revenue Water ReductionNew 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 
3Enhanced Operational EfficiencyOffice Equipment & FurnitureSum    1,658,500              –         325,000     1,333,500 
4Improved Billing EfficiencyUpgrading of the M@jics Billing SystemLot    1,500,000              –       1,500,000                –   
  GRAND TOTALS    8,233,635   1,636,413    3,194,223    3,403,000