Muranga Governor Irungu Kang’ata has rejected a proposed increment in water tariffs by three water companies in the county. Kang’ata rejected the tariff hikes proposal by Murang’a West, Gatanga and Gatamathi water companies, describing them as a ‘burden to the consumers’.
If approved by the Water Service Regulatory Board (Wasreb) the tariffs are to be implemented between July 1, 2024, to June 30th, 2029. In February, the respective companies convened public participation forums to approve the tariffs, where only Gatanga leaders led by MP Edward Muriu, MCAs Moses Gachui and Alex Wanyoike opposed the tariffs while the residents endorsed the proposals.
The water companies’ leadership during the public participation outlined the challenges they were facing in production based on the high cost of living, escalating electricity bills and water treatment chemicals.
Kang’ata in a circular to the regulator dated April 8, and copied to Water Cabinet Secretary Zachary Njeru, and Athi Water CEO Eng Joseph Kamau, listed several reasons for his rejection of tariffs.
The Governor’s concerns are failure to address non-water revenue losses.
Non-revenue water (NRW),is the difference between water produced by a utility company for utilisation and the actual water billed to its customers.
“The WSP lacks justification to increase tariffs based on water development projects,” read part of the circular. Kang’ata administration in the year 2024/22025 allocated Sh363 million for the Department of Water, Environment and Climate Change. And allocating Sh5 per ward to address last mile connections to homesteads.
The governor recommended the three water companies to benchmark with Nyeri Water (Nyewasco) on the management of non-water revenue which is at 20 per cent, and charging the commodity at Sh47 per cubic metre.
At Murang’a West WSP non-water revenue stands at 59 per cent, with the proposed tariffs of Sh90 cubic meters, Gatanga water NRW is 59 per cent with consumer bill proposed at Sh120 per cubic metre and Gatamathi has a NRW of 37 per cent with the cost at Sh60 per cubic metre.
He outlined that the proposed charges by the three firms are higher as compared to eight other firms operating under the 0-6 unit among them Nanyuki Water (Nawasco) charging at Sh50 per cubic metre of water.
Eldoret water charges the least at Sh37 per cubic metre and Ruiru-Juja and Kiambu companies the highest at Sh 68 per cubic metre.
The three firms last year transferred their ownership to the Murang’a County Government on directive by the regulator. In the county, only Murang’a South Water (Muswasco) defied to transit ownership to the county government, an issue that brought conflict among leaders.