Kenyans face higher water bills as tariffs are increased

Households in six counties are staring at an increase in water bills by up to 11 per cent after the government approved new tariffs in a move that will also hit private businesses, counties and institutions such as schools.

The Water Services Regulatory Board (Wasreb), in a gazette notice, issued new one-year water and sewerage tariffs for utility firms in Kisumu, Uasin Gishu, Kakamega, Nyeri, Laikipia and Kiambu counties that will run from July 1, 2023 to June 30, 2024.

Laikipia residents, who are served by the Nyahururu Water and Sanitation Company (Nyahuwasco), have been hit with the sharpest water prices increase of 10.9 per cent. This will see households who consume up to six cubic-metres of water pay Sh61 per cubic-metre up from Sh55.

In Kakamega, water prices will rise by 8.7 per cent for the same category of customers, which will see them pay Sh87/m³ up from Sh80/m³, while in Nyeri, households will pay Sh51/m³ up from Sh47/m³, an increase of 8.5 per cent.

The two counties are served by the Kakamega Water and Sanitation Company (Kacwasco) and Nyeri Water and Sanitation Company (Nyewasco) respectively.

In Uasin Gishu, the Eldoret Water and Sanitation Company (Eldowas) will charge Sh37/m³ up from Sh35/m³, a 5.7 per cent increase while in Kisumu, the Kisumu Water and Sanitation Company (Kiwasco) will charge Sh80/m³, a 6.6 per cent jump from Sh75/m³.

Lastly, Kiambu residents, who are served by the Thika Water and Sanitation Company (Thiwasco) and consume up to six cubic-metres of water monthly will incur a six per cent increase from Sh50/m³ to Sh53/m³.

The higher water prices come at a time Kenyans are braving high costs of food, fuel, electricity and loans. Inflation stood at 7.9 per cent last month, largely due to increase in prices of commodities under food and non-alcoholic beverages (10.3 per cent), housing, water, electricity, gas and other fuels (9.4 per cent) and transport (9.4 per cent).

The World Bank has been supporting the government’s water and sewerage price increase as part of its loan deals with Kenya, arguing that higher tariffs will enable water service providers raise enough money to expand and upgrade their ageing networks.

In a recent report, the lender disclosed that the government has identified a package of reforms that will help to mobilise part of the additional financing required to meet the country’s target for water and sanitation.

This includes increasing tariffs to cover 150 per cent of the operating costs of the State-backed water firms from the current 105 per cent to unlock an additional Sh45 billion that will be used to maintain and improve water and sewerage infrastructure.

Most of water service providers are operating at a loss, with the average water supply tariffs being 25 per cent lower than the average cost of their service, the multilateral lender said.

This also comes at a time when President William Ruto is seeking to privatise water supply as part of his plans to increase water access to households. In his inaugural address to members of parliament last year, the President said the government is broke and cannot afford the billions of shillings needed for water provision in the short term.

He said the government will adopt a public-private partnership (PPP) model to mobilise funds from the private sector for providing water to citizens.

The World Bank estimates that Kenya needs some $14 billion (Sh1.7 trillion) in investment in water supply to achieve universal water access by 2030.

“In order to achieve our target of raising access to water from the current 60 per cent to 80 per cent, Sh500 billion is required. The government can provide this gradually, but the private sector can mobilise it all at once,” Dr Ruto told Parliament.

“We will thus adopt a PPP framework by entering into water purchase agreements with investors. This way, we will achieve water for all in less than a decade,” he said.

The government has already moved ahead with the plan and last week tabled in Parliament the Water (Amendment) Bill, 2023, which seeks to amend several sections in the current law, setting up the country for the first ever water PPP projects.

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