The Water Resource Management Authority (WRMA) hopes to raise at least KES 100 million (US$ 91,000 = EUR 58,000) annually by imposing a new fee for bulk water users. The new money will be used to improve water delivery services in areas suffering from severe water shortages.

In the past, companies and individuals have drawn water for free, but that will change now that the new water rules were launched by the (former) Minister for Water Resources and Irrigation, Mr John Munyes, at the beginning of April 2008.

Water service providers who handle at least 220 million cubic metres of water every year will be charged KES 0.50 (0.041 US$ cents = 0.026 Euro cents) per cubic metre. The WRMA clarified that the new charges will not apply to small-scale water users.

The new measure will affect not only water service providers but also hydropower producers like Kenya Electricity Generating Company (KenGen). Although the WRMA will not charge consumers directly, the new fees charged on KenGen and water services companies will ultimately be passed on to them in form of higher water and electricity tariffs.

Related web site: IRC – Financing and Cost Recovery

Contact: Ministry of Water & Irrigation, pro@water.go.ke, http://www.water.go.ke

Source: The Nation / allAfrica.com, 9 Apr 2008 ; Steve Mbogo, Business Daily / allAfrica.com, 9 Apr 2008

Tags: financing, water distribution, water resources management