The Water Services Regulatory Board (WASREB) has defended water tariff increases, saying providers need adequate revenue to maintain services, invest in infrastructure and expand access to water without placing an unfair burden on low-income households.
WASREB Chief Executive Officer Leparan Tiala made the case on Tuesday before the National Assembly Committee on Blue Economy, Water and Irrigation, where he explained how the regulator reviews and approves water charges.
Tiala said the process is guided by the Water Act, 2016, the Water (Services) Regulations, 2025, and the WASREB Tariff Guidelines, 2024, which seek to balance providers' financial needs with consumers' ability to pay.
“The tariff-setting framework seeks to ensure that tariffs are fair and affordable to consumers. enable Water Service Providers (WSPs) to recover the efficient costs of service provision, and promote the financial sustainability of service delivery while supporting expanded access to water and sanitation services,” Leparan said.
The regulator's explanation comes amid challenges in implementing tariffs for the 2025/26–2029/30 period, including public opposition to proposed increases, weak billing systems and delays in securing county government approvals.
WASREB said some water service providers had gone years without major tariff adjustments, leaving them struggling to match revenue with the cost of delivering services.
When the providers proposed higher charges to address the shortfall, some increases proved difficult for consumers to afford, forcing the regulator to moderate proposed rates in certain cases.
“Affordability and public resistance: In several WSPs, the magnitude of the tariff adjustment required to close the cost-recovery gap after years of tariff stagnation exceeded consumers’ Perceived ability to pay, generating resistance during public participation and, in some cases, requiring the proposed tariffs to be moderated before approval,” Leparan states.
The regulator also identified low metering rates and high levels of non-revenue water as major obstacles to effective billing and revenue collection. Some providers also lack the technical and financial management capacity to prepare reliable cost estimates, requiring additional support during tariff reviews.
Under the regulatory framework, tariffs are reviewed every three or five years, depending on the commercial viability of the provider. Water companies must submit applications at least six months before their existing tariffs expire, while WASREB is required to notify them at least nine months before expiry.
The review considers service delivery costs, affordability, consumers' willingness to pay, county government views and feedback from public consultations.
WASREB may approve proposed rates as submitted, amend them or attach conditions before determining when the new tariffs take effect. Approved tariffs are published in the Kenya Gazette, with 30 days' notice before implementation.
The regulator said its pricing model is based on cost recovery, requiring providers to cover operating and maintenance expenses before progressing towards full recovery of costs, including debt servicing, infrastructure investment and asset renewal.
To protect vulnerable consumers, WASREB has introduced increasing-block tariffs, regulated prices for water kiosks and lower tariff bands for public education institutions.
Public participation is also mandatory before new tariffs take effect, allowing consumers to raise concerns about affordability and service quality.
“Mandatory public participation: Section 139 of the Water Act, 2016 requires every WSP to conduct public consultation before a tariff takes effect, giving consumers and stakeholders a formal channel to raise affordability and service-quality concerns, which WASREB reviews before granting final approval.” Leparan told the lawmakers.
WASREB said approved tariffs are also tied to service delivery conditions covering water coverage, hours of supply, water quality, metering and targets for reducing non-revenue water.
The requirements are intended to ensure providers meet agreed service standards while maintaining financial stability.
The regulator maintained that tariff adjustments must support reliable water services and infrastructure investment while protecting consumers from unjustified costs.