Water costs are expected to rise as a result of the World Bank’s push for additional conservation levies and higher regulatory fees for water providers.
According to the multilateral financier, World Bank, Kenyan water service providers should fund 70% of the Water Resource Authority’s (WRA) budget, up from 30% currently.
The introduction of freshwater conservation charges will see service providers pass on the higher expenses of piped water and sewerage to homeowners and businesses.
“The proposed changes affect companies that harvest raw water from rivers. The water companies will call for an increase from the regulator to reflect the higher cost of obtaining the water,” said a top executive at the Water Services Regulatory Board (WSRB).
The World Bank’s proposal for increased water charges was exposed in a government report after the bank authorized a new loan for Kenya for Sh80 billion to help the country respond to the Covid-19 outbreak while also addressing its debt risks.
A number of water companies, including Nairobi City Water and Sewerage Company (NCWSC), are scheduled for a tariff review, according to the board.
