Despite a surge in the cost of living, another round of price increment is facing Nairobi residents as a review of the prices of water looms, threatening to hit low-income earners and businesses the hardest.

The proposals will see the price of water for low-cost income regions increase by 20 per cent, and 40 per cent for heavy water users. They will also spike manufacturers’ costs, which will be passed to consumers.

The Water Service Regulatory Board (Wasreb) said, in a recent gazette notice, that Nairobi City Water and Sewerage Company (NCWSC) had sought a higher tariff review to recover costs, pay loans and upgrade infrastructure.

“NCWSC proposes an upward tariff review to enable it to operate at full cost recovery and meet conditions necessary for improving service delivery,” stated Peter Nyagah, the director of licensing, standards and advocacy at Wasreb, in the notice.

Already, the prices of maize, cooking oil, wheat, petrol, taxes and cooking gas have hit the roof. An increase in the cost of water could spark another round of price increases in sectors such as hotels, laundry, hospitals and other support services.

Besides domestic use, water is used in food-related businesses such as restaurants, manufacturing and many others which could see food prices rise, both in supermarkets and restaurants.

Nairobi’s population has nearly doubled in 20 years, from 2.2 million in 2000 to more than 5.1 million in 2022. However, the water infrastructure has not improved in line with the population.

But critics blame poor resource management as water continues to be wasted due to poor distribution systems and theft. Wasreb urged Nairobi residents to comment on the proposed price increases as water vendors in slum areas fear the move will run them out of town.

The NCWSC, a subsidiary of Nairobi County government, has sought the regulator’s approval to increase water tariffs by between 20.44 per cent and 39.57 per cent, depending on monthly consumption levels.

Three new dictum by the Organisation for Economic Co-operation and Development state that putting the right price on water will encourage people to waste less, pollute less, and invest more in water infrastructure. But balancing ‘financial, environmental and social objectives in water pricing policies’ continues to be a major challenge in most countries.

 Safety target

The cost of living in Kenya jumped to 7.9 per cent in June, from 7.1 per cent in May, raising the case for the higher cost of loans having gone past the 2.5 – 7.5 per cent safety target that Central Bank of Kenya (CBK) aims at for price stability.

City’s residents who use 15,000 litres of water per month will now be expected to pay over Sh500 more — about Sh1,740 — compared with Sh1,250.

Price increases will hit poor Kenyans who live in urban areas the most, especially those in informal settlements where the cost of water is far too high, with a 20-litre container going for Sh20.

“We will have no business to run if these people increase the cost of water,” says George Nyaora, a water vendor at Mukuru kwa Njenga slum.

In the past, the Kenya Association of Manufacturers (KAM) has called for a water policy that will monitor the supply chain to cut losses and foster recycling.

“An industrial water policy will therefore look at the provision, use, distribution, disposal and reuse of water, while  upholding and replenishing the ecosystem,” said KAM.

Big water consumers such as factories  — especially fruit juice processors and water packing companies — could see their bills rise. However, most of these factories are not located in Nairobi county.

Kenya is one of the countries termed by the UN as ‘chronically water scarce’. This is because it falls below the global standard benchmark for water adequacy set at 1,000 cubic metres, registering less than 647 cubic metres of water supply.

There have been local efforts toward water management in the industry, such as the formation of The Kenya Industrial Water Alliance (Kiwa).