Water bills expected to rise as World Bank pressure increase of regulatory fees for Water companies.

Water bills are expected to increase following pressure from the World Bank on new storage tariffs and increased regulatory fees for water companies.

The multinational donor estimates that Kenyan water service providers should cover 70% of the Water Resources Authority (WRA) budget out of the current 30 percent.

The introduction of a water conservation tariff will cause service providers to incur additional costs for housing and business for piped water and sewage.

“Improving access to water and sanitation services, and improving the management and conservation of water resources … implements new water and water conservation tariffs,” said the World Bank.

Withdrawal fees are the licensees who pay the WRA to obtain products from natural sources such as rivers.

“Current tariffs do not provide sufficient economic incentives for water conservation, nor do they generate sufficient financial resources to enable the WRA to fulfill its regulatory responsibilities,” the Bank said.

The World Bank’s pressure to increase water supply was revealed in the government’s advice after approving a new $ 80 billion loan to Kenya to help the government.

“ Companies that collect raw water from rivers are the ones affected by the proposed changes . Water companies will ask for an increase from the regulator to show the high cost of access to water, ”said a senior official from the Water Services Regulatory Board (WSRB), which approves the new tariff.

The Council believes that several water companies, including the Nairobi City Water and Sewerage Company (NCWSC), need to be taxed.

Providers undertook a tax reform campaign that was last modified more than five years ago to cover rising operating and maintenance costs.

Under the new pricing guidelines, each service provider is expected to recover its medium and long-term service costs and leave extra to enable it to upgrade its infrastructure.

Currently, Kenyans pay an average of Shs 93 per cubic meter or 1,000 liters for running water in homes.

Planned tariff adjustments will force water users to dig deeper into their pockets, a painful blow when the cost of living has reached unprecedented levels.

The combined effects of high water prices and high prices for gasoline and cooking gas are expected to increase inflationary pressures in the economy where households have cut back on a number of goods and services from their budgets to receive during the crisis.

Kenyans on social media recently expressed concern about declining cash flows, declining employment opportunities and increasing public debt, which led to a request by the International Monetary Fund (IMF) to stop lending more to the country.

The World Bank says additional costs are needed to cover the cost of conserving water sources.

Multilateral lenders, including the IMF, are expected to play a key role in formulating policies that would force governments to implement complex conditions in many sectors.

Advice from the IMF and the World Bank comes on the basis of their multi-billion dollar lending facilities in Kenya, where money flows directly into the budget to supplement public funds.

Under the leadership of former President Mwai Kibaki, Kenya has secured itself from this type of loan, with significant support from institutions such as the IMF and the World Bank to take a backlash. For projects.

Kenya has recently experienced a sharp decline in its monetary stance, set by declining revenues, increased debt service obligations and the impact of the Covid-19 disaster.

The Treasury has also been under pressure from the IMF to double the value added tax (VAT) on all petroleum products in an attempt to reduce the budget deficit and control government borrowing.

Recently, high water demand and bad weather have led to shortages in many cities.

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Clean Drinking Water
[photo/courtesy]

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