The Nyeri Water and Sanitation Company Ltd introduced a new pro- poor tariff which took effect in the month of April. The tariff which takes into consideration the needs of customers in the low income areas who are the majority, charges Ksh 47 per cubic meter which is also referred to as a unit of water. The cost of production of one unit is Ksh 66.08. This translates to a Ksh 19.08 subsidy per unit. This will go a long way in reducing the burden of the low consumers in accessing clean and safe water for domestic use.
On the other hand, it costs Ksh 52.12 to clean one unit of waste water. However, the consumers who fall under the lower cluster of consumption will be charged Ksh 45 enjoying a subsidy of Ksh 7.12.
A survey conducted by the Water Services Regulatory Board (WASREB) on the company’s service area showed that 72% of the consumers are poor and consumed a maximum of 6 units per month. As such there was need to review the tariff and come up with a structure which subsidized the rates for this group of customers. The successful implementation of this tariff will help the company to dispense its mandate effectively while taking care of the people living in the low income areas.
