strategic plan - kericho
TRANSCRIPT
Maji Safi Kila Wakati
KERICHO WATER AND SANITATION COMPANY LTD
STRATEGIC PLAN
2017 – 2022
AUGUST 2017
Kericho Water and Sanitation Company 2017– 2022 Strategic Plan i
Chairman’s Remarks In 2016, Kericho Water and Sanitation Company, for the very first time was awarded the winner in water
category during the annual Champions of Governance Award This award gave impetus to the Board of
directors and Management team of KEWASCO who sought to set their horizon further through
development of a number of policies. Board of Directors and senior management staff are bound by code
of ethics that assures suppliers of due diligence in keeping with the Company’s goal of strengthening its
corporate governance.
Apart from this Strategic Plan, the Board has approved development of a number of policies such as Anti-
corruption policy, service charter, Communication Plan, Pro Poor policy, Whistle blowing policy among
many others. In order for the company to provide quality services and create a niche within the country,
we are committed to ensuring that all stakeholders receive water regularly, efficiently and that the water
they receive is of good quality and quantity as per the provisions of Constitution of Kenya 2010. The
Company aspires to be a leading and self-sustaining water and sanitation service provider in Kenya.
The mandate of KEWASCO is to provide water and sanitation services in the Company’s areas of
jurisdiction. Since the Company is run on commercial principles, staff and management are integrated
into a competitive and pro-active team with a common goal.
We have kept on adopting and mastering use of GIS applications. In addition, we have embraced use of
ICT which has seen us integrate mobile money transfer, mobile meter reading, SMS services and cashless
transactions.
I am pleased to announce that KEWASCO and TILWASCO merger is the best thing that has happened to
the Company. The advantages include economies of scale, commercial viability, and waste minimization
and ease of resources mobilization.
In preparation of this Strategic Plan, the role and dedication of the management team will not go
unnoticed. Much thanks goes to the CMT from the merged water utility for supporting the Consultant to
ensure this Strategic Plan was professionally prepared.
I look forward with confidence that we are going to walk together to achieve our vision and objectives.
Eng. Kipsuge arap Soi Chairman, Board of Directors.
Kericho Water and Sanitation Company 2017– 2022 Strategic Plan ii
Foreword by the Managing Director Water is a common heritage, the value of which must be recognized by all. Everyone has the duty to use water carefully and economically. “European Water Charter”
It gives me great pleasure to write this foreword for Kericho Water and Sanitation Company Ltd
(KEWASCO) Strategic Plan 2017-2022. This Strategic Plan has been carefully prepared taking cognizance
of the merger between the former KEWASCO and TILWASCO Water and Sanitation Companies. The Plan
seeks to comply with the requirements of the Constitution of Kenya 2010, Water Act 2016, Vision 2030,
Sustainable Development Goals and associated regulations and prescribed Corporate Governance
guidelines issued by Water Services Regulatory Board.
Since its formation in 1997 and subsequent formal commencement of operations in 2003, KEWASCO has
strived to strategically position itself to provide quality water and sanitation services in conformity with
the provisions of Constitution of Kenya, 2010 section 43 (1) (d) -on economic and social rights which
provides every Kenyan with a right to clean and safe water in adequate quantities.
The Company strives to be a leading and self-sustaining water and sanitation service provider in Kenya. It
is with this vision in mind that the Strategic Plan has been prepared anchoring its successful
implementation to adherence to the five core values of team work, integrity, professionalism, innovation
and customer focus. We will put stakeholder satisfaction in mind by ensuring that the service we offer is
exemplary and meets their expectations through enhanced efficiency and effectiveness in resolving
customer complaints in conformity to the Customer Service Charter.
This Strategic Plan puts great emphasis on the organization’s future outlook which focusses on
infrastructure improvement, increased water coverage, increased collection efficiency, prompt repairs of
bursts and leakages, increased metering ratio, upgrade of raw water schemes into fully treated water
schemes and increased sanitation coverage so as to realize the five thematic areas namely (i) Water and
Sanitation Provision, (ii) Operational efficiency, (iii) Financial sustainability, (iv) Collaboration with Sector
players and lastly (v) Customer service.
Successful implementation of this strategic plan will imminently be faced with a major challenge of
continued purchase of bulk water from Bomet County which is purchased inclusive of Non-Revenue
Water losses now still at over 55%. The other challenge is the different tariff structure for borehole water,
pumped water and gravity fed water in the same supply area. However, the tariff review for the new
KEWASCO is expected to enable the merged company to remain financially viable provided it receives the
proposed subsidy per month required to support the rural based water schemes (Tililbei Cost Centre) to
meet electricity costs to improve on its infrastructure network such distribution, metering, treatment of
raw water and GIS mapping.
During this five year Plan, a new Kimugu Water Treatment plant and Kusumek Mini Hydro and water
treatment plant will be constructed through external financing. The two projects will augment the current
water production to ensure sustainable water supply to urban and rural areas.
Mindful of the impacts of climate change, and the accompanying reduction in water quality and quantity
during droughts, KEWASCO will invest in initiatives that conserve water and energy resources including
reforestation of watersheds, explore solar power and wind energy. The Company is also exploring
generation of electricity and production of briquettes using sludge at its Sewerage Treatment Plants.
On capacity building, the Company will endeavour to train, motivate and retain the staff with the best
requisite talent and provide the best working environment. Furthermore, KEWASCO will continue to
deepen implementation of the Human Resources Policy, notably through internship opportunities,
employee and leadership development plans and through partnerships with universities, technical and
vocational and educational training institutions (TVED). The Company also seeks to strengthen corporate
governance and risk management through adherence to good corporate governance principles and
Kericho Water and Sanitation Company 2017– 2022 Strategic Plan iii
enhanced systems of internal control. We aspire to remain relevant, sustainable and competitive through
embracing innovation, putting emphasis on corporate governance and ensuring that we put our
customers’ interest first.
The planned activities will not be successfully implemented without synergy and complimentarity by
stakeholders. In this regard, KEWASCO will continue to collaborate with Lake Victoria South Water
Services Board, herein referred to as Water Works Development Agency, the Department of Water,
Environment, Energy, Forestry and Natural Resources for adequate water resources to be developed
including, completion of the new Kimugu Water Treatment Plant and Kusumek project. The Company will
further continue to manage its existing water supplies with the utmost care, whilst exploring alternative
sources, including embarking on a feasibility study for a water storage reservoir.
The resource envelope required to implement this plan will be KShs 4.3 Billion. This will be financed
majorly by the Company’s internal revenues, loans, County Government subsidy and asset development
funds from Water Works Development Agency. This budget will be reviewed at Mid-term to factor in the
effects of inflation.
Last but not least, may I call upon political leadership, customers and other stakeholders to continue
giving us the support required to execute the planned activities so that we achieve the desired objectives.
Together we shall take water and sanitation provision to the next level.
Thank you and God Bless the Shareholder, God bless our customers, suppliers and Partners, God bless
KEWASCO.
Eng. Joseph K. Terer Managing Director
Kericho Water and Sanitation Company 2017– 2022 Strategic Plan iv
LIST OF ACRONYMS AND ABBREVIATIONS BoD – Board of Directors
CBD – Central Business District
NG_CDF _ National Government Constituency Development Fund
CSR – Corporate Social Responsibility
CGoK - County Government of Kericho
ERM _ Enterprise Risk Management
GIS – Geographic Information System
GoK – Government of Kenya
GPS _ Global Positioning System
HOD - Head of Department
HTS - Head of Technical Services
HF&CS - Head of Finance & Commercial Services
HR – Human Resource
HRM - Human Resource manager
ICT – Information Communication and Technology
KEWASCO – Kericho Water and Sanitation Company Ltd
KPI – Key Performance Indicator
MD - Managing Director
M & E – Monitoring and Evaluation
MoU _ Memorandum of Understanding
MWI _ Ministry of Water and Irrigation
NRW – Non Revenue Water
NWMP _ National Water Master Plan
O&M – Operation and Maintenance
PESTEL – Political, Economic, Socio-cultural, Technological, Ecological
and Legal
SDGs _ Sustainable Development Goals
SPA _ Service Provision Agreement
TILWASCO - Tililbei Water and Sanitation Company Ltd
TNA _ Training Needs Assessment
LVSWSB – Lake Victoria South Water Service Board
VAT _ Value Added Tax
WAB – Water Appeals Board
WT - Water Tribunal
WARREC _ Water Research and Resource Center
WASREB – Water Services Regulatory Board
WWDA - Water Works Development Authority
WHO – World Health Organization
WRA - Water Resource Authority
WRMA – Water Resources Management Authority
WSB – Water Services Board
WSP – Water Services Provider
WSTF – Water Services Trust Fund/Water Sector Trust Fund
Kericho Water and Sanitation Company 2017– 2022 Strategic Plan v
TABLE OF CONTENTS
CHAIRMAN’S REMARKS ................................................................................................................................ I
FOREWORD BY THE MANAGING DIRECTOR ....................................................................................... II
LIST OF ACRONYMS AND ABBREVIATIONS ........................................................................................ IV
EXECUTIVE SUMMARY .............................................................................................................................. VII
CHAPTER ONE ................................................................................................................................................. 1
INTRODUCTION ............................................................................................................................................... 1
1.1 BACKGROUND ........................................................................................................................................ 1 1.1.1 BACKGROUND OF FORMER KEWASCO .................................................................................................. 1 1.1.2 BACKGROUND of TILWASCO .................................................................................................................. 2 1.1.3 BACKGROUND OF THE COMPANY ......................................................................................................... 3
1.2 KEWASCO’S CONTRIBUTION TOWARDS VISION 2030 AND SUSTAINABLE
DEVELOPMENT GOALS ....................................................................................................................... 3 1.3 RATIONALE FOR THE STRATEGIC PLAN ........................................................................................ 4 1.4 EXPECTED OPERATING ENVIRONMENT/PLANNING ASSUMPTIONS ................................. 4 1.5 PROCESS OF DEVELOPING THE PLAN ........................................................................................... 5
CHAPTER TWO ................................................................................................................................................ 7
INSTITUTIONAL REVIEW ............................................................................................................................. 7
2.1 MANDATE AND CORE FUNCTIONS .................................................................................................. 7 2.2 VISION ........................................................................................................................................................ 7 2.3 MISSION .................................................................................................................................................... 7 2.4 CORE VALUES ......................................................................................................................................... 8
CHAPTER THREE ........................................................................................................................................... 9
SITUATIONAL ANALYSIS .............................................................................................................................. 9
3.1 WATER SECTOR ANALYSIS ................................................................................................................. 9 3.2 EVALUATION OF PAST PERFORMANCE ....................................................................................... 10
3.2.1 Implementation of 2013 – 2017 Strategic Plan ................................................................................... 10 3.2.2 Financial Performance ......................................................................................................................... 13 (a) Income Statement ....................................................................................................................................... 13 (b) Statement of Financial Position .................................................................................................................. 16 3.2.3 Non-Financial Performance ................................................................................................................. 19
3.3 ENVIRONMENTAL ANALYSIS ........................................................................................................... 20 3.4 STAKEHOLDER ANALYSIS ................................................................................................................ 23
CHAPTER FOUR ............................................................................................................................................ 27
STRATEGIC ANALYSIS ................................................................................................................................ 27
4.1 STRATEGIC THEMES .......................................................................................................................... 27 4.2 STRATEGIC OBJECTIVES AND STRATEGIES ............................................................................ 31
CHAPTER FIVE .............................................................................................................................................. 36
IMPLEMENTATION PLAN ........................................................................................................................... 36
5.1 IMPLEMENTATION THEMES AND OBJECTIVES ............................................................................. 36 5.2 STRATEGIC PLAN IMPLEMENTATION COORDINATOR ................................................................. 45
CHAPTER SIX................................................................................................................................................. 46
Kericho Water and Sanitation Company 2017– 2022 Strategic Plan vi
INSTITUTIONAL STRUCTURE................................................................................................................... 46
CHAPTER SEVEN .......................................................................................................................................... 47
STRATEGIC FINANCIAL PLAN .................................................................................................................. 47
7.1 FUNDING ALTERNATIVES .......................................................................................................................... 47 7.2 STRATEGIC FINANCIAL PLAN .................................................................................................................... 47 7.3 MEDIUM TERM FINANCING PLAN ............................................................................................................ 50 7.4 LONG-TERM FINANCING PLAN ................................................................................................................. 50
CHAPTER EIGHT........................................................................................................................................... 52
MONITORING AND EVALUATION ............................................................................................................ 52
8.1 OBJECTIVES OF MONITORING AND EVALUATION ................................................................. 52 8.2 MONITORING AND EVALUATION (M & E) FRAMEWORK ........................................................ 52 8.3 KEY PERFORMANCE INDICATORS ................................................................................................ 53 8.4 ACCOUNTABILITY AND RISK MANAGEMENT ............................................................................. 54
ANNEXES ......................................................................................................................................................... 57
ANNEX 1 ............................................................................................................................................................... 57
LIST OF TABLES Table 1: Implementation of previous KEWASCO Strategic Plan .............................................. 10 Table 2: Implementation of previous TILILBEI Strategic Plan ................................................. 12 Table 3: The Former KEWASCO Income Statement ............................................................... 14 Table 4: TILILBEI Income Statement ..................................................................................... 14 Table 5: The Former KEWASCO Statement of Financial Position ........................................... 16 Table 6: TILWASCO Statement of Financial Position ............................................................ 18 Table 7: KEWASCO Non-Financial Performance .................................................................... 19 Table 8: KEWASCO Stakeholders ......................................................................................... 23 Table 9: KEWASCO Strategic Objectives ............................................................................... 31 Table 10: Strategic Financial Plan ........................................................................................ 47 Table 11: Source of Funds for Strategic Plan ......................................................................... 50 List of Figures Figure 1: The Former KEWASCO income statement .............................................................. 14 Figure 2: TILILBEI income statements .................................................................................. 15 Figure 3: KEWASCO Statement of Financial Position ............................................................ 17 Figure 4: TILWASCO Statement of Financial Position extracts ............................................... 19
Kericho Water and Sanitation Company 2017– 2022 Strategic Plan vii
EXECUTIVE SUMMARY
Kericho Water and Sanitation Company Limited (KEWASCO) is a clustered
company consisting of the former Tililbei Water and Sanitation Company
Limited (TILWASCO), a rural based scheme that covered nine schemes namely
Kapkatet/Litein, Sosiot, Kipkelion, Chesinende, Londiani, Fort Ternan,
Kipsitet, Bargeiywet and Sigowet, and the former Kericho Water and Sanitation
Company Limited (KEWASCO), which formerly was mandated to provide water
and sanitation services within the urban and Peri urban areas of Kericho town.
The core mandate of merged KEWASCO is to provide Water and Sanitation
Services to the whole of Kericho County. KEWASCO’s joint mandated area of
coverage is over 2,454 km2 while the area currently supplied with water is
estimated to be 291 km2.
The Kenya Constitution 2010 provides water and sanitation as an economic
and social right as stipulated under Article 43 (1) (d) that every person has a
right to clean and safe water in adequate quantities. Further, the Vision 2030
aims at increasing accessibility to sustainable, quality and affordable water
and sanitation services. In line with this goal, and in order to meet the demand
for water by the rapidly growing population, KEWASCO sought to come up with
a road map for the next five years. This resulted in preparation of Strategic
Plan 2018 – 2023 which is tailored towards achieving its mandate and
objectives. The Corporate Strategic Plan was developed through a participatory
approach which ensured that views of the key stakeholders were incorporated.
A review of the Company’s vision, mission and core values was undertaken. A
situational analysis was also carried out to evaluate the past performance, and
the internal and the external environments in which the Company operated.
These analyses enabled the isolation of the key strategic issues that require
management intervention during the strategic planning period. The identified
strategic themes formed the basis for setting of objectives for the next five
years.
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The strategic themes identified are:
1. Non-Revenue Water (NRW) 2. Water and Sewerage infrastructure 3. Operational efficiency 4. Financial sustainability 5. Customer service 6. Institutional restructuring
To deliver on the identified strategic themes, the Company identified strategic
objectives that would enable it fulfil its mission. These are:
i. To reduce the Non-Revenue Water from 50% in 2018 to 30% by 2023
ii. To increase water production from 16,000 m3 per day to 32,000 m3 per
day by 2023
iii. To increase sanitation coverage from 40% to 60% by 2023.
iv. Improve on operation efficiency to meet all WASREB targets by 2023
v. To increase revenue from Kshs. 204 million in 2018 to Kshs. 400 million
by 2023.
vi. To improve collection efficiency from 92 % in 2018 to 98% by 2023
vii. To increase customer satisfaction by 10% annually
viii. Operationalize institutional restructuring of the merged KEWASCO and
TILWASCO to one highly performing water utility by 2023.
ix. To have a qualified, experienced, motivated workforce
Strategies to achieve these objectives were set and for each strategy, the
expected output, action areas, implementing actors, resource requirement,
time frame and output indicators were determined. These have been
documented in an implementation matrix presented in Chapter Five of this
Strategic Plan.
To help ensure successful implementation of the Strategic Plan a monitoring
and evaluation (M&E) framework has been provided in Chapter Seven. To guide
the operationalization of the M&E, annual key performance indicators that will
help to track progress towards the achievement of the set objectives were
identified and documented.
Kericho Water and Sanitation Company Ltd 2017 – 2022 Strategic Plan 1
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
The County Government of Kericho (CGoK), in its endeavour to effectively serve
its residents with water and sanitation services, spearheaded merger of the two
Water utilities within the County namely Kericho Water and Sanitation
Company Ltd, (KEWASCO), (a large and urban based water utility) and Tililbei
Water and Sanitation Company Ltd, (TILWASCO), (a medium and rural based
water utility). This is also in tandem with the CGoK vision of having a diverse
and dynamic community with a healthy economy and environment where
all people and businesses have the opportunity to thrive. The new
Company has jurisdiction over the entire Kericho County.
1.1.1 BACKGROUND OF FORMER KEWASCO
Kericho Water and Sanitation Company Ltd (KEWASCO) was a Private Limited
Company established under the Company’s Act Cap 486, Laws of Kenya, by
ordinary share capital by Kericho Municipal Council in October 1997. With
promulgation of the new Constitution 2010, the Company’s shareholding was
transferred to County Government of Kericho (CGoK), and thus wholly owned
by CGoK and operated under Lake Victoria South Services Board.
Formerly, KEWASCO was contracted by Lake Victoria South Water Service
Board (LVSWSB) to provide Water and Sanitation Services within the County
Government of Kericho and its environs. However, following the enactment of
Water Act 2016, this mandate has since been transferred to Water Works
Development Agency (WWDA).
The former KEWASCO’s mandated area of coverage was 144 Km2 while the
actual area supplied with water was estimated to be 126 Km2. The total
population living within the Company’s area of jurisdiction was estimated to be
175,626 out of which 98,780 people were being served by the Company
(WASREB Impact Report, No. Issue 9/2016).
Kericho Water and Sanitation Company Ltd 2017 – 2022 Strategic Plan 2
The former KEWASCO had three main water schemes namely: Kimugu
Treatment Works with a design capacity of 4,000m3 per day, Kapcheptoror
Water Treatment Works with a design capacity of 8,800 m3 and Ngecherok
Production Plant with a Design Capacity of 300m3 per day. The daily water
demand in the former KEWASCO’s coverage area was 14,000 m3 per day
against a then daily production of 11,000m3 per day.
The former KEWASCO had approximately 4,930 sewer connections and only a
small area of Kericho town of approximately 2.5km² has a pipe borne sewerage
system that was first commissioned in 1962 but had subsequently been
improved. The sewerage system comprised of piped collection system and a
centralized waste water treatment plant covering Central Business District
(CBD) and a few settlement areas around the built up areas. The sewerage
treatment plant which had both the conventional and biological systems of
treatment, had a design capacity of 990m³/day Dry weather Flow but on a day
to day basis, the average inflow was about 450m³/day i.e. 45% of the design
capacity, serving only 25% of the served population . The treated influent is
discharged into the natural waterway.
1.1.2 BACKGROUND of TILWASCO
Tililbei Water and Sanitation Company Ltd (TILWASCO) was a Private Limited
Company established under the Company’s Act Cap 486, Laws of Kenya, by
ordinary share capital, established on 5th August 2011. TILWASCO was
contracted by Lake Victoria South Water Services Board (LVSWSB) on 26th
June 2011 to provide Water and Sanitation Services within Kericho and Bomet
Districts which were formerly under the mandate of Chemosit Water and
Sanitation Company Limited. However, following devolution, Bomet Water and
Sanitation Company Limited was formed to serve Bomet County, while
TILWASCO remained to serve parts of Kericho County.
TILWASCO’s mandated area of coverage was 5,000 km2 but the actual area of
coverage was165 km2. The total population living within the Company’s area of
Kericho Water and Sanitation Company Ltd 2017 – 2022 Strategic Plan 3
jurisdiction was estimated to be 182,628 out of which 118,512 people were
being served by the company (WASREB Impact Report, No. Issue 9/2016).
TILWASCO used to receive bulk water from Bomet Water and Sanitation
Company which was supplied to Litein and Kapkatet towns. The Agreement
with Bomet Water and Sanitation Company was to supply 4000 m3 of water per
day, however, the water actually supplied was less than the agreed volume.
TILWASCO also operated eight other water schemes across its area of
jurisdiction as annexed.
1.1.3 BACKGROUND OF THE COMPANY
Kericho Water and Sanitation Company Limited (KEWASCO) is a clustered
company consisting of the former Tililbei Water and Sanitation Company
Limited (TILWASCO), a rural based scheme that covered nine schemes namely
Kapkatet/Litein, Sosiot, Kipkelion, Chesinende, Londiani, Fort Ternan,
Kipsitet, Bargeiywet and Sigowet, and the former Kericho Water and Sanitation
Company Limited (KEWASCO), which formerly was mandated to provide water
and sanitation services within the urban and Peri urban areas of Kericho town.
1.2 KEWASCO’S CONTRIBUTION TOWARDS VISION 2030 AND
SUSTAINABLE DEVELOPMENT GOALS
Kenya’s long-term development agenda is set out in the Kenya Vision 2030.
The aim of the Vision is to make Kenya a globally competitive and prosperous
country by transforming it into an industrialized middle-income Nation,
providing a high-quality life for all its citizens in a clean and secure
environment. KEWASCO has an important role to play in the realization of
Vision 2030 and Sustainable development Goals (SDGs) through provision of
water to residents, institutions, commercial entities and industries within
Kericho County. The most relevant SDG for KEWASCO is Goal Number 6 –
Ensure availability and sustainable management of water and sanitation
for all. The goal has eight targets that are expected to be achieved by 2030.
Kericho Water and Sanitation Company Ltd 2017 – 2022 Strategic Plan 4
To fulfil its mandate, there is need to develop and sustain linkages and
collaborations with National and County Government, other Government
institutions including the Ministry of Water and Irrigation (MWI), Water
Services Regulatory Authority (WASREB) and other institutions provided for in
the Water Act, 2016.
1.3 RATIONALE FOR THE STRATEGIC PLAN
The expiration of the current Strategic Plan (2013-2017) and the merger of the
former KEWASCO and TILWASCO necessitated development of a new Strategic
Plan that will enable the merged KEWASCO to adopt a proactive approach in
the discharge of its mandate. The Strategic Plan will also enable KEWASCO to
evaluate alternative strategies and select the best strategies for achieving its
objectives in the planning period. The Strategic Plan builds on the lessons
drawn from the implementation of the previous strategic plans.
With this Strategic Plan in place, the Company will be able to focus on the
most important aspects of its business and to determine the most efficient way
of utilizing its resources within competing budgetary requirements. Thus, this
Strategic Plan provides a framework for prioritization and allocation of
resources during the planning period. The strategic planning process is
participatory thus involving key stakeholders, which enhances stakeholders’
motivation and support during implementation. Further, the process facilitates
information and knowledge sharing among stakeholders hence better planning
and coordination of Company operations and activities. The Strategic Plan also
provides the basis for developing short term objectives and goals as well as
developing policies and regulations to govern or to control operations such as
operating Policy Manuals.
1.4 EXPECTED OPERATING ENVIRONMENT/PLANNING ASSUMPTIONS
In developing the Strategic Plan, the following assumptions were made:
Kericho Water and Sanitation Company Ltd 2017 – 2022 Strategic Plan 5
i. There will be sustained good working relationship between the Company
and Stakeholders.
ii. There will be continued cordial relationships with Development Partners
iii. There will be political, social and economic stability in the country/County.
iv. There will be no adverse changes in legislation and government policies.
v. The period after the merger will be cordial and harmonious.
1.5 PROCESS OF DEVELOPING THE PLAN
Participatory strategic planning process was used in developing the Strategic
Plan. This ensured incorporation of the views of the various stakeholders in the
resulting Plan. The process entailed consultations with Management and the
Board of Directors. Specifically, the methodology comprised of the following:
1.5.1 Document Review
Various documents were reviewed for the purpose of extracting relevant
information for use in the strategic plan. These documents included:
i. KEWASCO 2013 – 2017 Strategic Plan;
ii. TILWASCO 2007 – 2012 Strategic Plan;
iii. Financial and other performance reports;
iv. LVSWSB-KEWASCO Service Provision Agreement;
v. LVSWSB-TILWASCO Service Provision Agreement;
vi. Water Act, 2016;
vii. WASREB Circular on Commencement of the Water Act, 2016;
viii. WASREB Impact Reports;
ix. Kenya Vision 2030; and
x. Sustainable Development Goals (SDGs).
1.5.2 Pre-Workshop Discussions
Discussions were held with the management of the two water utilities. The
interviewees provided their input on the strategic direction to be taken by the
Company, which informed the Strategic Plan preparation.
1.5.3 Strategic Planning Workshops
Kericho Water and Sanitation Company Ltd 2017 – 2022 Strategic Plan 6
To incorporate views of stakeholders and in order to enhance ownership of the
Strategic Plan, the following workshops were held:
i. A two-day strategic planning workshop with staff which culminated in a
draft Strategic Plan; and
ii. Two days strategic planning workshop with the Board and Management
to refine the draft Strategic Plan.
Kericho Water and Sanitation Company Ltd 2017 – 2022 Strategic Plan 7
CHAPTER TWO
INSTITUTIONAL REVIEW
2.1 MANDATE AND CORE FUNCTIONS
2.1.1 Mandate
The Mandate of KEWASCO is to provide water and sanitation services in the
Company’s areas of jurisdiction.
2.1.2 Core Functions
The core functions of KEWASCO as stipulated in the Company Memorandum
of Association and Service Provision Agreement (SPA) are:
a. Water supply and Sewerage infrastructure development;
b. Abstraction, treatment, distribution of water and provision of sanitation
services
c. Commercial and Financial management (Meter reading, billing, revenue
collection and prudent management of financial resources).
d. Extension, Rehabilitation and Renewal of the infrastructure.
In addition, KEWASCO is also expected to participate in the conservation of
water resources in liaison with Water Resources Authority (WRA), Water
Resource Users Association (WRUA), Basin Water Resource Committees
(BWRC), the County Government of Kericho (CGoK), Development Partners,
Kenya Forest Services and other institutions and stakeholders.
2.2 VISION
To be a leading and self-sustaining Water and Sanitation Service Provider in Kenya.
2.3 MISSION
To effectively provide sustainable water and sanitation services to our customers in a safe, reliable, adequate and affordable manner.
Kericho Water and Sanitation Company Ltd 2017 – 2022 Strategic Plan 8
2.4 CORE VALUES
The Company has developed five core values namely; Team Work, Integrity, Professionalism, Innovation and Customer focus (TIPIC). These are highlighted below:
i). Team Work
KEWASCO staff will work as a committed team in realizing the
Company’s goals.
ii). Integrity
We uphold the highest ethical standards, demonstrating honesty and
fairness in all our operations. We are committed to efficient use of
resources and being accountable for our actions.
iii). Professionalism
We will take a professional and objective approach in all operations. We
will uphold competence, high standards, reliability and excellence in our
work.
iv). Innovation
KEWASCO recognizes that innovation is key in improving service
delivery. The Company is therefore committed to fostering creativity and
embracing innovation in the entire work force.
v). Customer Focus
We recognise that our customers are the reason why we exist. We
endeavour to provide high quality services in a timely manner which
exceed customer expectations and honour commitments that we have
made to them.
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 9
CHAPTER THREE
SITUATIONAL ANALYSIS
3.1 WATER SECTOR ANALYSIS
Kenya's population is estimated to be 46.1 million in 2017 and projected to
increase by 1 million per annum to approximately 51 million by the year 2022.
Out of the total population, only 20 million reside in areas currently served by
the 86 regulated utilities, with a total of 1.4 million connections. It is projected
that by year 2030, the population in these service areas will increase to 45
million. By 2014/15 Kenya’s water coverage stood at 55%. During the same
period Non-Revenue Water (NRW) in the country was at 43% an increase from
42% in 2013/14. Thus, effective NRW management is the bedrock of
operational sustainability which will translate to increased revenue.
(Sometimes it may only result to increased available water)
On the other hand, sewerage coverage dropped from 16% in 2013/14 to 15% in
2014/15. This is a low coverage considering that population has been
increasing rapidly. To attain the sector target of 100% sewer coverage for the
urban population, the sector requires an average growth in sewer connections
of approximately 350,000 which translates to 3.2 million people annually. It is
clearly evident that the resource requirements to attain the 2030 target are
enormous and the sector should explore different models of financing sewerage
infrastructure.
According to the Kenya Water Master Plan, 2030, the budget requirements to
make water and basic sanitation available to all by 2030 is Kshs 1.7 trillion
against the available government budget of Kshs 592.4 billion. This leaves a
shortfall of Kshs 1.2 trillion. To bridge this gap, there is need for increasing
sector efficiency, maximising consumer contributions through tariffs, and
encouraging private sector funding. In a bid to enhance access to commercial
financing, WASREB in conjunction with World Bank Water Global developed a
Creditworthiness Index for large utilities, as well as tool kits on commercial
lending to the water and sanitation sector for the three main stakeholders
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 10
(utilities, commercial banks and county governments). The purpose of the
Creditworthiness Index is to provide lenders with a snap-shot of the financial
and operational performance of utilities across the sector.
3.2 EVALUATION OF PAST PERFORMANCE
3.2.1 Implementation of 2013 – 2017 Strategic Plan
A summary of the achievements made in each of the key strategic areas of the
2013 – 2017 Strategic Plan for the Former KEWASCO is presented in Table 1.
Table 1: Implementation of previous KEWASCO Strategic Plan
OBJECTIVE STRATEGY ACHIEVEMENT
To achieve an Optimal, Motivated and Productive Workforce
Staff skills analysis No achievement has been made on this objective
Staff training and development
Training in GIS, NRW, Plumbing, ICT, preparation of Financial statements, customer care, and Audit carried out
Job valuation/organization review
A job evaluation was not conducted, and it is of paramount importance for it to be done now that KEWASCO and TILWASO have merged.
To ensure an efficient and effective water supply and sanitation
Fully equipped laboratories
Rehabilitate the treatment plants
Calibrate the bulk meters Fully equip the production
sector with electrochemical equipment
Introduce a software for monitoring water quality
Automate bulk meters Automate zonal bulk
meters Rehabilitate the old
distribution network in town
Sensitize customers on way leaves
Replace old meters Introduce double chamber
meter boxes
Timbilil Laboratory partially equipped
Timbilil, Kimugu and Ngecherok Treatment Plants have been rehabilitated
Bulk meters calibrated The Water Production section has
been equipped with electrochemical equipment
NRW team has been established to curb water losses
Waste Water Treatment plants are undergoing rehabilitation
Customer identification survey carried out
Old distribution network rehabilitated with HDPE and PPR pipes
Currently sensitization of customers on way leaves is ongoing
Old meters replaced Curb illegal water use and prevent
meter theft
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 11
OBJECTIVE STRATEGY ACHIEVEMENT
To enhance capacity of supplying
Fix mobile meter reading Use SMS for billing and
customer enquiries (complaint and balance)
KEWASCO will develop a customer service policy and procedures manual
KEWASCO will develop and implement a Cost-Reduction Strategy
Enhance new meters stock level to match demand
Develop and implement a Records Management Policy and ensure adequate infrastructure for proper records management
Develop and install a Quality Management System ISO 9001:2008
Mobile Meter Reading is operational SMS billing has been introduced Customer service policy and
procedures manual are not yet developed.
Cost Recovery Strategy not developed
Meter stocked appropriately Records Management Policy not
developed but the Company is operating under Corporate Policy.
KEWASCO is yet to be ISO 9001:2008 Certified
To embrace Information Technology in all areas of operation
Training and development of staff
Purchase of computers Add new modules to the
new billing system Network the offices Create user access rights
on each folder Modify website to allow
customers to log in, make inquiries, check balances, raise complaints
Purchase an ERP to integrate HR, Accounting, Payroll, Stores, Clock in system and Budget system
Install VPN to staff Purchase data loggers Conduct automation
survey
Staff training conducted in all sections
Laptops and Computers purchased New modules eg Mpesa, SMS,
Mobile Meter Reading and GIS added
Offices networked New access rights created in each
folder Website modified and customers
can check balances and raise complaints
ERP procured and integrates well with Accounts, Payroll and HR
Masts and radios installed instead of VPN
Mobile Meter Reading purchased instead of Data Loggers
Automation Survey conducted
To enhance financial sustainability and commercial viability
Increase meter connections
Reviewing tariffs to cover all operation and maintenance costs
Reduce UFW Adopt cost-cutting
measures
Increasing meter connections and reduction of NRW is currently on going
Tariff reviewed to 2015-2018 NRW is still high but the worst
areas have been identified and isolated as sub –DMA’s, plans to install pressure reducing valves
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 12
OBJECTIVE STRATEGY ACHIEVEMENT
Comply with the service charter on response time to new connections
and replacement of UPVC pipes is still ongoing
Compliance with service charter is currently halfway but response time to new connections is still not timely
Based on the information provided, the implementation of the Strategic Plan
2013-2017 is at least 65%. Effort in infrastructure improvement has been
made, with substantial effort in improving the welfare of employees and
customers. Acquisition of ISO 9001-2015 would improve business efficiency
and customer satisfaction. Whereas tariff review would enhance financial
sustainability. Similarly, staff analysis, job evaluation/organization review
would enhance staff productivity.
A summary of the achievements made in each of the key strategic areas of the
2007 – 2012 Strategic Plan for TILILBEI (formerly CHEMOSIT) is presented
below
Table 2: Implementation of previous TILILBEI Strategic Plan OBJECTIVE STRATEGY ACHIEVEMENT
Improve access to quality water
Undertake rehabilitative initiatives to eradicate wastage, misuse and UFW
Realized through acquisition of portable laboratory equipment,
Composite filtration units were constructed in Bomet town and Olbutyo.
Acquisition of pump sets and improved distribution network in Bomet town
To improve access to sanitation services
Dig pits and septic tanks in trading centers and acquire three exhausters.
One exhauster acquired for waste water collection
To optimize operations Increase storage facilities and pumping hours
Metering unmetered
customers Introduction of gravity
schemes Preventative maintenance
will be structured into operations
Constructed four storage tanks in Bomet, Londiani, Kipkelion and Litein schemes
Increased metering of customers from 20%-to 28%.
No gravity system was developed
Preventive maintenance schedule developed
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 13
To improve quality and reliability of service
Train staff on customer service
Customer satisfaction
mechanisms will be put in place
A number of training was carried out on customer care and meter reading
Customer satisfaction survey was not carried out
To establish a strong and well managed organization
Enhance leadership and governance at Board and Management levels
Human Resource Development
Boards of Directors were trained on governance issues.
Training of staff in performance management, meter reading.
To achieve operational financial sustainability
Mobilize adequate financial resources from user fees
The tariff was approved but was not gazetted, hence the company depended on subsidies from the National Government
To enhance stakeholder awareness on water sector reforms
Engage stakeholders Undertake sensitization
campaigns
Stakeholder fora were held in all schemes
Sensitization campaigns were conducted at the scheme level.
To integrate gender and HIV/AIDS concerns in operation
Put in place a policy that is gender sensitive and addresses previous imbalances
The company is in conformity to the 1/3rd gender rule.
Sensitization on HIV/AIDs undertaken at Kapkatet headquarter.
About 60% of the target of the Strategic Plan were achieved. Corporate
governance training for Board Members was conducted. However, the request
for tariff review was approved but not gazetted, therefore the Company went
into financial constraints. Performance measures in the previous Strategic Plan
are not clear to make an accurate assessment of implementation status of the
Strategic Plan.
3.2.2 Financial Performance
A review of the Former KEWASCO’s and TILWASCO’s financial performance was
undertaken through an analysis of the audited accounts for years 2012/2013
to 2015/2016 and the unaudited accounts for 2016/2017. The results are as
follows:
(a) Income Statement
I. The Former KEWASCO Income Statement
The results of the analysis of the income statements for the Former KEWASCO
for the period from year 2012/13 to 2016/17 captured in Table 3.
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 14
Table 3: The Former KEWASCO Income Statement
2012/13 2013/14 2014/15 2015/16 2016/17
Kshs Kshs Kshs Kshs Kshs
Total Income 133,286,078 147,815,928 151,224,058 159,108,784 160,320,500
Annual Income growth (percentage)
11% 2% 5% 1%
Expenses
Administration and establishment expenses
96,046,620 98,061,883 118,770,472 123,797,095 126,967,850
Cost of sales 49,878,647 49,878,647 46,975,414 56,557,700 34,695,230
Total Expenses 145,925,267 147,940,530 165,745,886 180,354,795 161,663,080
Administration and establishment expenses growth
1% 12% 9% (10%)
Figure 1 below shows extracts from the former KEWASCO’s financial
statements.
Figure 1: The Former KEWASCO income statement
Over the last five years, total income and administration and establishment
costs have generally been increasing steadily. Cost of sales have generally been
increasing with the exception of the 2016/17 financial year where it decreased
by 10%.
II. TILILBEI Income Statement The results of the analysis of the income statements for TILILBEI for the period
from year 2012/13 to 2016/17 captured in Table 4.
Table 4: TILILBEI Income Statement
2012/201
3
2013/14 2014/15 2015/16 2016/17
Kshs Kshs Kshs Kshs Kshs
0
50,000,000
100,000,000
150,000,000
200,000,000
2012/13 2013/14 2014/15 2015/16 2016/17
Total Income
Administration andestablishment expenses
Cost of sales
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 15
Revenue
Sales 56,355,677
34,641,848 30,821,144 28,379,29
8 33,087,91
5
Grants from National/ CGoK
27,875,685
9,322,035 5,117,134 52,480,17
3 28,391,41
7
Other income 7,993,913 (4,355,035) 2,919,142 1,360,579 2,652,688
Total revenue 92,225,275
39,608,379 38,857,419 82,220,05
0 64,132,02
0
Operating expenses
Administration costs 37,253,694-
34,278,342 29,734,518 27,385,43
1 29,031,31
3
Operation and maintenance costs
48,578,803-
32,365,764 30,279,125 29,711,12
9 32,958,46
6
Depreciation of property plant and equipment
115,523- 135,222 149,432 314,850 992,818
Cost of sales
Amortization of Intangible assets
175,200 37,740 150,960 - 68,135
Total operating expenses
86,122,920
66,817,068 60,314,035 57,411,41
0 63,050,73
2
Operating profit (loss) -
(27,208,689)
(21,456,616)
24,808,640
1,081,289
Finance income 31,794- 2,763 34,437 34,823 20,870
Finance costs 164,482 86,595 247,405 243,901 249,558
Profit/(Loss) before taxation
6,298,632 (27,292,52
1) (21,669,58
4) 24,599,56
2 852,601
Income tax expense (credit)
- - - - -
Profit/(Loss) after taxation
6,298,632 (27,292,521)
(21,669,584)
24,599,562
852,601
Figure 2 below shows extracts from the former TILILBEI income statements.
Figure 2: TILILBEI income statements
There was sharp decline in the total revenue in the 2013/14 financial year and
then increased. The administration and operation and maintenance costs have
throughout the years been decreasing from over the past five years.
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 16
(b) Statement of Financial Position
I. The Former KEWASCO Statement of Financial Position The analysis of the statement of the financial position for the period 2012/13
to 2016/17 is captured in Table 5.
Table 5: The Former KEWASCO Statement of Financial Position
2012/13 2013/14 2014/15 2015/16 2016/17
Kshs Kshs Kshs Kshs Kshs
Assets
Non-current Assets
Property, plant and equipment
24,823,908
20,409,842
17,910,298 14,882,121
25,294,058
Current Assets
Inventories 2,538,718 1,205,313 2,030,602 1,979,248 13,006,902
Trade and other receivables
60,581,290
73,703,461
98,400,387 36,674,204
93,304,879
Cash and Bank balances
3,670,301 1,916,441 1,224,452 3,395,353 4,340,189
Staff Receivables 4,316,652
66,790,309
76,825,215
101,655,442
42,048,805
114,968,621
Total Assets 91,614,217
97,235,057
119,565,740
56,930,926
140,262,679
Percentage growth 6% 23% -52% 146%
Shareholders’ Funds and Liabilities
Capital and Reserves
Share capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Capital reserves -2,429,375
-2,429,375
-2,429,375 -2,429,375
-2,429,375
Revenue reserves -19,340,020
-16,900,982
-31,422,810
-33,328,802
-37,373,615
-13,769,395
-11,330,357
-25,852,185
-27,758,177
-31,802,990
Non-Current Liabilities
Loan 5,763,947 2,849,202 1,440,232 753,459 3251605
Deferred liability 17,007,359
17,007,359
17,007,359 17,007,359
Customer deposits 7,122,475 7,982,325 8,944,825 9,015,523 12,515,250
Staff gratuity 5,155,150 1,296,694 4,160,722 4,160,722 4,160,722
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 17
35,048,931
29,135,580
31,553,138
13,929,704
36,934,936
Current Liabilities
Trade and other payables
6,712,005 15,898,481
18,263,232 16,142,602
71,483,465
Overdraft 3,152,869 3,504,335 25,660,466 355,261
-
Agency current account
53,928,466
60,027,016
66,136,989 45,637,236
50,172,068
Amount due to related party
6,541,340 0 3,804,100 8,615,300 13,475,200
70,334,680
79,429,832
113,864,787
70,750,399
135,130,733
Total shareholders’ funds and liabilities
91,614,216
97,235,055
119,565,740
56,921,926
140,262,679
Figure 3 below shows extracts from KEWASCO’s Statement of Financial
Position
Figure 3: KEWASCO Statement of Financial Position
The Non-current assets and current assets increased from 2012/13 to
2014/15 before declining in 2015/16 and steeply increasing in 2016/17/ The
Non-current and current assets have been experienced a slight dip in the
2015/16 financial year.
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
2012/13 2013/14 2014/15 2015/16 2016/17
Non-current Assets
Current Assets
Non Current Liabilities
Current Liabilities
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 18
II. TILILBEI Statement of Financial Position The analysis of the statement of the financial position for the period 2012/13
to 2016/17 is captured in Table 5.
Table 6: TILWASCO Statement of Financial Position
2012/13 2013/14 2014/15 2015/16 2016/17
Kshs Kshs Kshs Kshs Kshs
Non-current Assets
Property, plant and equipment
537,025 810,298 660,867 3,849,617 4,842,946
Intangible Assets 188,700 150,960 - - 278,305
WIP WSTF Projects 8,117,720 - - - -
8,843,445 961,258 660,867 3,849,617 5,121,251
Current Assets
Inventories 673,911 638,883 591,434 5,511,381 3,451,442
Trade and other receivables
75,247,354 75,567,283 77,915,935 79,212,173 81,835,786
Cash and bank balances
7,038,065 13,539,868 6,072,969 5,941,143 5,929,696
82,959,330 89,746,034 84,580,338 90,664,697 91,216,924
Total Assets 91,802,775 90,707,292 85,241,205 94,514,314 96,338,175
Percentage growth
Shareholders’ Funds and Liabilities Capital
(1.2%) (6.0%) 10.9% 1.9%
Ordinary share capital 100,000 100,000 100,000 100,000 100,000
Capital reserves 31,421,989 31,421,989 31,421,989 31,421,989 31,421,989
Retained earnings 7,150,170 (20,142,351) (41,811,935) (17,212,373) (16,359,772)
Total Capital Reserves 38,672,159 11,379,638 (10,289,946) 14,309,616 15,162,217
Current Liabilities
Trade and other payables
25,070,403 73,072,190 87,633,735 70,300,808 69,507,090
Retirement benefit obligations
- 6,255,464 7,897,416 9,903,890 11,668,868
Customer deposits 6,247,015 - - - -
Related party transaction
21,813,198 - - - -
Total current liabilities
53,130,616 79,327,654 95,531,151 80,204,698 81,175,958
Total equity and liabilities
91,802,775 90,707,292 85,241,205 94,514,314 96,338,175
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 19
Figure 4 below shows extracts from TILILBEI’s Statement of Financial Position
Figure 4: TILWASCO Statement of Financial Position extracts
The current assets experienced a slight declined in 2014/15 before increasing
in the 2015/16 and 2016/17 financial years. While the total current assets
rose from 2012/13 to 2014/15 before experiencing a decline in the 2015/16
and 2016/17 financial years.
There is therefore need for the company to enhance efficient utilization of
assets for maximum returns.
3.2.3 Non-Financial Performance
I. KEWASCO Non-Financial Performance An extract of KEWASCO’s past non-financial performance for the period 2014/15
to 2016/17 is as captured in Table 7.
Table 7: KEWASCO Non-Financial Performance
2014/15 2015/16 2016/17
Water production (m3) 3,425,038 3,606,465 3,429,045 Water available for sale (m3) 3,140,206 3,404,405 3,285,119 Water Sold (m3) 1,584,291 1,752,355 1,749,093 Water Unaccounted For (m3) 1,555,915 1,669,037 1,536,026 NRW (%) 50% 49% 47% Number of sewer connections 4,710 4,930 5,138 Number of active water connections ( billed)
10,757 11,577 11,857
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
2012/13 2013/14 2014/15 2015/16 2016/17
Non-current Assets
Current Assets
Total current liabilities
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 20
It is noted that the former KEWASCO had very high Non Revenue Water (NRW)
averaging 48% in the financial year 2016/2017 which exceeded the WASREB
NRW benchmark of 25%. In view of this, the merged Company has identified
NRW reduction as a key strategic theme in its 2018 -2023 Strategic Plan; with
the company aiming to reduce NRW from 50% in 2018 to 30% by 2023.
3.3 ENVIRONMENTAL ANALYSIS
In the process of preparing the Strategic Plan, KEWASCO undertook an
environmental analysis aimed at determining emerging issues that need to be
addressed or considered during the plan period. The analysis was undertaken
through Political, Economic, Socio-cultural, Technological, Ecological and Legal
(PESTEL) and Strengths, Weaknesses, Opportunities and Threats (SWOT)
models. The results are as follows:
3.3.1 PESTEL Analysis
Factor Issues Effect Mitigation Measures
Political Changes in government policies
Conflict in the trans boundary water sources
Competition of water resources
Collaboration with County Governments
Continuous and timely review of policies and procedures to align with prevailing changes
Political interference
Interference with the company’s operations
Adhere to company policies and procedures
Economic Inflation High interest
rates Unemployment
Low purchasing power among consumers
High cost of doing business
Declining inflow of development partners’ support
Pro poor initiatives Adopt cost saving
measures Tariff review
Inadequate government subsidy
Low infrastructure development
Strengthen collaboration and partnership with development partners and private sector players.
Explore innovative financing
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 21
Factor Issues Effect Mitigation Measures
Social-cultural environment
High population growth rate
Increased water demand
Serve the un-served population within KEWASCO’s jurisdiction
Water is a basic human right – hence attitude for free access
Non-payment for water supplied
Create awareness and adhere to company policies
Strengthen and equip NRW unit
Inefficient water usage by consumers
Loss of water/revenue
Customer education Improve on response
time
Technology Technological advances
Reduction of Non-Revenue Water
Cost reduction Improved quality
of service delivery
Promote the utilization of ICT in service delivery e.g. GIS, leak detection equipment, illegal connection, minimum night flow measurements, isolation of DMAs, Meter Reading, Billing, Accounting system, HR system, customer care system, Mpesa, Procurement, fleet management, Payroll
Ecological Natural disasters e.g. floods
Destruction of water infrastructure and disruption of operations
Construction of floods mitigation dams
Climate change
Diminishing water resources
Creating awareness on environment conservation
Waste management
Poor management of waste will lead to environment pollution
Use of modern waste management technologies
Legal Changes in legislations that affect WSP e.g. Water Act 2016
Legislation will change management of water resources and water services
Adhere to the new legislation
3.3.2 SWOT Analysis
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 22
Analysis of the internal environment was carried out in order to identify factors
within KEWASCO that may influence performance positively (strengths) or
negatively (weaknesses).
STRENGTHS 1. Good water quality. 2. Minimum competition – There is
little competition for water and sanitation services provision.
3. Uptake of technology. 4. Gravity fed system in the urban
service area– low electricity cost. 5. Professional and skilled
management. 6. Good customer base.
WEAKNESSESS 1. Dilapidated infrastructure – piping
system – causes loses and increases maintenance cost.
2. Due to financial constraints – the organisation has not been able to meet its obligations e.g. statutory payments and pension payments for staff.
3. Poor Operation and Maintenance affects service delivery to customers.
4. High NRW due to dilapidated infrastructure and illegal connection.
5. Communication lapses and weak dissemination of information.
6. Customer and staff malpractice. Collusion for illegal connections
7. Aging workforce. 8. High cost of production in the rural
areas that use pumping water system.
9. Demotivated workforce in the rural service area due to unpaid salaries and lack of finances to facilitate their work.
10. Poor transportation which hinders surveillance and maintenance work in the rural service area.
11. Inadequate succession planning. 12. Inadequate office space in
KEWASCO Head office.
OPPORTUNITIES 1. Open a subsidiary company for
bottling water for County Government functions. Kericho has good quality water supply from the Mau Forest Complex.
2. Explore reusable energy power
THREATS 1. Demand notice from KRA and other
suppliers can affect daily operations.
2. Political goodwill. Any interference during and after the merger can cripple operations.
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 23
sources such as solar power and hydro.
3. Upgrade the sewerage plant in the urban service area to meet current demand.
4. Set up a sewerage plant in the rural service area to serve customers. Value addition of sludge to make briquettes and manure for sale.
5. Increase water production by setting up new water treatment plants.
6. Explore gravity water systems in the rural service area.
7. Upgrade raw water schemes to full treatment water schemes.
8. Take advantage of economies of scale after merger which will lead to reduction on purchase costs.
9. The merger will help attract more development partners for financing and collaboration in projects
3. KEWASCO rural service area get bulk water from Bomet County, operations can be crippled if Bomet County stops this supply.
4. Inability to have an effective cost recovery in KEWASCO rural service area due to its low tariff.
5. LVSWSB and County conflicts can affect operations.
6. Kericho County Government may stop subsidising Tililbei (KEWASCO rural service area) operations putting a financial strain on KEWASCO urban service area.
7. Vandalism of water and sewer infrastructure.
8. Fluctuations in economic factors such as inflation, exchange and bank lending rates can increase cost of doing business.
9. Illegal connections leading to high NRW.
10. Defaulters of water bills which affects collectable revenue.
3.4 STAKEHOLDER ANALYSIS
A stakeholder is any person, group or institution that has an interest in the
activities of an organization. KEWASCO has many stakeholders in its core
functions some of whom are identified in Table 8.
Table 8: KEWASCO Stakeholders
Stakeholder Stakeholder Expectation KEWASCO Expectation
1. Ministry of Water and Irrigation (MWI)
Deliver on the mandate Compliance with the Water
Act 2016 and other relevant regulations
Existence of an enabling environment
Provide sector policy direction
2. Water Services Regulatory Board (WASREB)
Compliance with the regulatory rules and guidelines
Efficient utilisation of resources
Equity in regulation Prompt approval of tariff
3. Water Sector Trust Fund (WSTF)
Generation of feasible project proposals.
Proper use of funds Proper and timely
Fair distribution of resources
Timely release of funds
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 24
Stakeholder Stakeholder Expectation KEWASCO Expectation
implementation of projects
4. Water Tribunal Compliance to service standards and regulations
Timely resolution of conflicts.
5. Water Resource Authority (WRA)
Compliance with water permits rules
Support in conservation effort
Effective management of water resources
Conservation of water resources
6. National Environment Management Authority (NEMA)
Compliance with the EMCA Act 1999 and other relevant regulations
Conservation of the environment
7. Lake Victoria South Water Services Board/Water Works Development Agency)
Deliver on the mandate Compliance with the Water
Act 2016 and other relevant regulations
Efficient utilisation of resources
Fairness in the regulation of WSPs under its jurisdiction
Timely dissemination of information
Provision of resources for infrastructure development
8. County Government Delivery of quality water and sanitation services.
Collaborating in project planning and implementation.
Employment to residents The water service provider
should be self-sustainable Implement strategic
decision Involvement in decision
making on Water Sector Corporate Social
Responsibility (CSR)
Provide enabling environment
Funding for water and sanitation projects
Development of infrastructure and water master plan
Involvement in water policy development and planning
Effective participation during board meetings
Professional and expert representation in the BOD
Participate and mobilise residence in stakeholder forums
Prioritise water sector in terms of resource allocation
Financial subsidies for operations
9. Development Partners Accountability for funds provided
Provision of timely and accurate reports
Financial and technical support
Adherence to MoUs and contract terms
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 25
Stakeholder Stakeholder Expectation KEWASCO Expectation
Timely and accurate updates on the implementation status of projects
10. Financial Institutions
Timely settlement of financial obligations
Competitive credit terms and conditions
Prompt services provision
11. Water consumers/general public
Provision of adequate water and sanitation services
Affordable rates for water and sanitation services
Quick response to complaints and prompt repairs of bursts
Accurate bills produced on time
To be treated with courtesy by KEWASCO staff
Prior communication on service disruptions
Participate in stakeholder forums
Employment for the community
Reliable meters
Prompt payment of water and sanitation services
Report cases of vandalism of the water and sanitation infrastructure
Participate in public forums
Notify KEWASCO of pipe bursts
Provide labour for trench excavation
Lobby through leadership of MCAs and MPs with the county government. Good mobiliser
Honesty and avoid illegal connections.
12. The Media Provision of accurate and timely information
Fair and accurate reporting
Support in public awareness campaigns.
13. Service providers Fairness and equal opportunity
Prompt payment for goods and/or services rendered
Provision of adequate information
Quality products and services
Prompt delivery of goods and services
Adherence to the terms of contract
14. Learning and Research Institutions
Opportunity for student attachments and internships
Competent manpower Support for relevant
research/studies
15. Board of Directors
Implementation of developed policies
Achievement of the Company’s objectives
Policy direction Support in resource
mobilization Good corporate
governance
16. KEWASCO Staff Job security and sustainability of the Company
Provision of quality services to the company
Commitment to the
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 26
Stakeholder Stakeholder Expectation KEWASCO Expectation
Professional development and training
Competitive and equitable remuneration
Healthy, safe and secure working environment
Intrinsic motivation such as recognition and appreciation
Extrinsic motivation such as salary increment and bonuses
Prompt payment of monthly salary
Proper dissemination of information and communication by the company
Company’s mandate Innovation, creativity and
optimal productivity, team-spirit, integrity
Professionalism Public relations – respect
our stakeholders Accountability, respect
and discipline
17. Water Services Providers Association
Participating in WASPA events
Sharing KEWASCO’s experiences and best practices with other WSP’s
Provide benchmarking forums
Provide best practice cases
Capacity building
18. Kenya Bureau of Standards
Compliance with KEBS standards
Set standards for water and sewer services
Quality assurance of water and sanitation products e.g. water meters
19. National Water Harvesting and Storage Authority
Use water resources efficiently
Ensure quality of waste water discharged into the environment meets the required standards
Provides strategic water storage for Kericho County
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 27
CHAPTER FOUR
STRATEGIC ANALYSIS
4.1 STRATEGIC THEMES
Strategic themes are the key performance areas in which an organization must
excel in order to achieve its Vision and Mission, and deliver value to customers.
They are the organization's pillars of excellence. The strategic themes of
KEWASCO for the planning period are:
1. Non-Revenue Water (NRW) Management
2. Water and Sanitation infrastructure
3. Operational efficiency
4. Financial Sustainability
5. Customer Focus
6. Institutional Restructuring
4.1.1 Non-Revenue Water Management
Non-Revenue Water (NRW) is defined as the difference between the amount of
water a Water Utility supplies to the distribution system and the amount of
water billed. This is basically a reduction in water available for sale, and thus
results in loss of revenue. NRW is caused by both physical and commercial
losses. Huge volumes of clean water are lost through leaks and bursts and due
to metering inaccuracies at consumers and illegal water use.
KEWASCO has experienced high levels of NRW (48%) compared to sector
benchmark of less than 25%. The high level of NRW is attributable to water
loss due to aging pipe network, invisible leakages, frequent bursts, pipe
damage, meter tampering, illegal water use, meter inaccuracies, under read
and unread meters. To reduce NRW, there is need for the company to ensure
prompt maintenance of the water infrastructure, effective pressure
management and management of customer database for accurate and prompt
billing. There is also need for quick response to water bursts and illegal
connections.
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 28
4.1.2 Water and Sanitation Infrastructure
The current water and sewer coverage in KEWASCO’s area of jurisdiction is still
low, thus there is need to expand the scope of its water and sanitation services.
To achieve this, there is need to develop a water reservoir, new water treatment
plant, expand existing supply network to un-served and underserved areas and
rehabilitate the existing water distribution system by replacing uPVC and AC
pipes with more durable and pressure resistant pipe materials (HDPE and
PPR). Further, construct and rehabilitate water kiosks with overhead storage
tanks in the low-income areas. This will ensure sustainability of water supply
to customers. Further, the Company will expand the area under sewer through
development of a Sewerage Treatment Plant and Decentralised Treatment
Facilities (DTF) as well as expanding the Sewer Network.
4.1.3 Operational Efficiency
To achieve high levels of customer service and profitability, the company needs
to improve its operational efficiency. KEWASCO plans to streamline its
processes and also put in place appropriate operational policies and
procedures that will help in improving effectiveness and efficiency in service
delivery. This will aid the Company in ensuring reduction in operational costs
hence increasing the profitability. To achieve this, the company is committed to
mainstreaming ICT in its operations such as GIS mapping, isolation of District
Metering Areas (DMAs), meter reading, billing, Mpesa/bank integration system,
Tank level monitoring, reading of master meters, accounting, fleet
management, payroll management, and online payment of salaries among
others.
4.1.4 Financial Sustainability
In order for KEWASCO to achieve financial sustainability, there is need to
mobilize adequate resources to finance infrastructure development and
maintenance. In addition, the Company will explore other sources of revenue
such as bottling of water, hiring out of exhauster services, increase Water
Bowsers and briquette/manure making from sludge. Other conventional
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 29
sources of revenue include improvement of water and sewer services through
having an optimal tariff structure, improving collection efficiency. Further, the
company plans to pursue strategies aimed at increasing customer base
through more connection, reviving dormant accounts, metering unmetered
customers, regularise illegal consumers and reduce NRW.
4.1.5 Customer Service
To meet the needs of its customers and enhance customer satisfaction,
KEWASCO is committed to maintaining high standards of its service delivery.
To achieve this, the company will enhance adherence to the Customer Charter,
implement a Customer Relationship Management System as well as strive to
maintain a 24 hour service. Further, the Company intends to train all its staff
on effective customer relationship management. The Company will also carry
out Customer Satisfaction Surveys, hold customer weeks and introduce best
customer performance recognition and award.
4.1.6 Institutional Restructuring
To achieve its vision and mission, KEWASCO requires adequate human
resource capacity with the necessary skills and competences. The approved
Organization Structure and staff establishment should be operationalized in
order to drive the planned growth. In addition, enhancing staff capacity and
performance management will also be necessary in ensuring staff motivation
and productivity. The Company therefore plans to develop and implement
strategies that will enhance staff engagement and work performance. Further,
to ensure staff are adequately motivated, the company needs to provide
adequate office space, a conducive working environment, proper remuneration,
working tools and equipment.
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 30
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 31
4.2 STRATEGIC OBJECTIVES AND STRATEGIES
The strategic objectives and the respective strategies under each of the
thematic areas are captured in Table 9.
Table 9: KEWASCO Strategic Objectives
Theme Objective Strategy
1. Non-Revenue Water
To reduce the non-revenue water from 50% in 2018 to 30% by 2023
i. Develop policies and regulations to assist in NRW management
ii. Train staff on NRW management, tools and equipment
iii. Rehabilitation of water distribution network through replacement of uPVC pipeline distribution network with HDPE and PPR pipes
iv. Isolation of supply areas into DMAs and sub DMAs for measurement of NRW
v. Meter Replacement /Servicing. Ensure 100% metering ratio from 70%
vi. Reduce response time to bursts and leakages to 8 hours
vii. Minimize illegal use of water
2. Water and Sewerage Infrastructure
To increase water production from 16,000 m3 per day to 32,000 m3 per day by 2022
i. Construction of 3million m3 capacity dam along Kimugu River to enhance water supply sustainability. Others include Koru dam, Londiani (Masaita) and Bosto dams
ii. Construction of 13,000m3 Kimugu water treatment plant
iii. Construct Kusumek Mini Hydro for pumping water
iv. Upgrade raw water schemes to treated water schemes
v. Resource mobilization from financiers to assist in infrastructure development
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 32
Theme Objective Strategy
To expand sanitation coverage from 40% to 55% by 2022
i. Construction of a Sewerage Treatment Plant in Londiani, Kericho, Litein/Kapkatet and Kipkelion.
ii. Construction of Decentralised Treatment Facilities in the rural service area and satellite towns of Kapsoit, Brooke, Kapsuser and Chepseon, Sosiot, Fort Ternan, Roret and Kipsitet
iii. Construction of Sanitation Blocks at Ngoino Road and Londiani Junction
iv. Extension of existing sewer infrastructure in the urban service area
v. Construction of onsite sanitation treatment facilities and stabilization ponds in the urban areas
To increase water and Sanitation Coverage in low income areas annually by 10%
i. Establish a record system and Procedure for regular update for all information in low income areas
ii. Mapping of all LIAs and update as required
iii. Carry out baseline Survey to update population figures and service levels
iv. Carry out needs assessment and prioritization of intervention in low income areas
v. Continue finance mobilization for upscaling basic sanitation for the Urban Poor
vi. Create a budget line for pro poor department in the Master Budget
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 33
Theme Objective Strategy
3. Operational Efficiency
To ensure that there is continuous provision of water and sanitation services with minimal interruptions
i. Adherence to the preventive maintenance schedule
ii. Ensure availability of stand-by pump set and generators
iii. Maximising on working hours. Time management
iv. Timely payments of suppliers and other obligations
v. Provision of protective gear vi. Timely response to bursts and
leakages 4. Financial
Sustainability
To increase revenue from Kshs 204 million in 2018 to Kshs 400 million by 2023
i. Increase the metering ratio ii. Optimize billing efficiency iii. Enhance meter reading efficiency
to manage on commercial losses iv. Timely revision of tariff
To improve collection efficiency from 92 % in 2018 to 98% by 2023
i. Enhance the Integrity in revenue department by setting up control measures
ii. Ensure all bills are paid within the grace period
To implement Cost reduction measures
i. Reduce of non-core expenditures ii. Ensure 100% adherence to the
budget iii. Reduction in personnel and
operation and maintenance costs 5. Customer
Service To increase customer satisfaction by 10% annually
i. Revise and implement Customer Service Charter
ii. Timely response to customer complaints
iii. Continuous customer sensitization/education through newsletters and publications
iv. Hold stakeholder fora v. Hold Open days/ customer days
at KEWASCO to address customer issues
vi. Carry out a customer satisfaction survey every two years and implement corrective measures
vii. Develop a Communication Plan viii. Enhance involvement of
Water Action Groups
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 34
Theme Objective Strategy
6. Institutional Restructuring
To have a qualified, experienced, motivated workforce
i. Assess and carry out job evaluation of existing workforce
ii. Operationalise KEWASCO organogram and align staff in the departments within one year.
iii. Enhance performance management through performance appraisals and reward
iv. Provide a conducive working environment
v. Enhance organisational culture change
vi. Evaluate the scheme of service vii. Conduct a training needs
assessment in the next one year viii. Carry out Capacity building of
staff through continuous training.
ix. Develop a succession plan/policy Operationalize institutional restructuring of the merged KEWASCO and TILWASCO to one highly performing water utility by 2023
i. Dissolution of existing companies
ii. Amending MoU and Articles of Association
iii. Stakeholders engagement iv. Preparation of County Subsidy
proposal to TILWASCO Cost Centre
v. Preparation of Assets and Liabilities register
vi. Preparation of a harmonized tariff structure
vii. Application of Service Provision Agreement (SPA)
viii. Appointment of Board of Directors
ix. Operationalize the recommended organizational structure of the new water utility within one year
x. Enhance performance management through performance appraisals and reward
xi. Provide a conducive working environment
Kericho Water Supply and Sanitation Company Ltd 2017 – 2022 Strategic Plan 35
Theme Objective Strategy
xii. Harmonization of pay structure xiii. Enhance organizational culture
change xiv. Develop a succession plan/policy xv. Prepare a Scheme of Service
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 36
CHAPTER FIVE
IMPLEMENTATION PLAN
5.1 IMPLEMENTATION THEMES AND OBJECTIVES
THEME 1: NON-REVENUE WATER MANAGEMENT Objective 1: To reduce the non-revenue water to 30% by 2022 Strategy Expected Outcome
(s) Activities Output Indicator (s) Implementing
Actors Time Frame
Reduction of NRW
Reduction of NRW to 30% by 2022
i. Formulation of NRW Policy
ii. Train staff on NRW management, tools and equipment
iii. minimize illegal use of water
Approved and implemented NRW Policy
BOD & MD by 2019
iv. Increase the metering ratio from 70% to 100%
80% metering in 2yrs 90% in 3 yrs 100% in 5 years
CFM & TM June 2023
v. Replacement of UPVC pipes with HDPE and PPR
10% replacement of assorted HDPE and PRP pipes annually
CMT, CGoK, and Strategic Partners
by 2023
vi. Quick response to repairs from 12 hours to 8 hours
Reduced response time from 12 hrs to 8 hrs
TM by 2020
vii. Isolation of Sub DMA’s
Isolation of sub DMAs in areas A, B, D and E of Kericho Water within 2years
Litein and Kapkatet towns within 2 years
The others within 5 years plan period
TM & GIS June 2019 June 2023
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 37
THEME 2: WATER AND SEWERAGE INFRASTRUCTURE Objective 2.1: To increase water production from 16,000 cubic metres per day to 32,000 cubic metres per day in the next 5 years. Strategy Expected Outcome
(s) Activities Output Indicator (s) Implementing
Actors Time Frame
Construction of a 13,000 m3 capacity treatment plant in Kericho and 2,500 m3 capacity Kusumek treatment plant in Litein
Reliable and safe water supply.
i. Conduct feasibility, detailed design reports and tendering
ii. Mobilise for funds from development partners and CGoK.
iii. Undertake the construction of treatment plants
i. Feasibility study report on the identified locations
ii. Presentations to the County Government & development partners
iii. 13000m3 and 2500m3 per day capacities treatment plants
TSM M.D
December 2018 December 2018 By 2020
Construction of a 3 million m3 Kimugu dam
i. Conduct feasibility, detailed design reports and tendering
ii. Mobilise for funds from development partners and CGoK.
i. Feasibility study report on the identified locations
ii. Presentations to the County Government & development partners
TSM M.D County Government LVSWSB
By 2021
Upgrading of raw water to treated water schemes
i. Preparation of detailed design for water treatment works
ii. Construction of treatment works
i. Plant and raw water schemes upgrade
TSM & CFM By 2020
Objective 2.2: To expand sanitation coverage from 40% to 60% in the next five years. Strategy Expected Outcome
(s) Activities Output Indicator (s) Implementing
Actors Time Frame
Construction of on-site sanitation facilities at Kapsoit, Brooke, Kapsuser,
8No. Onsite sanitation facilities with total capacity 800 M3 per day
i. Mobilize financial resources from Development Partners and CGoK.
Reduce in Open Defecation
TSM June 2019
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 38
Strategy Expected Outcome (s)
Activities Output Indicator (s) Implementing Actors
Time Frame
Chepseon, Sosiot, Fort Ternan, Roret and Kipsitet
ii. Application for approvals from NEMA.
Increase in revenue from sewerage services
M.D October 2019
iii. Undertake the construction of Onsite sanitation facilities.
Improvement in environmental health.
TSM & CFM August 2020
Construction of a 790m3 capacity per day Sewerage Treatment Plant in Londiani Construction of sewerage treatment plants in Kericho, Litein/Kapkatet and Kipkelion.
Increase in sanitation coverage
i. Mobilize financial resources from Development Partners and CGoK.
ii. Application for approvals from NEMA.
iii. Undertake the construction of Onsite sanitation facilities.
i. Onsite sewerage project
ii. Increase in sewer Connection
MD and TM December 2019
Extension of existing sewer infrastructure in the urban service area
Increase in sanitation coverage
i. Mobilize funds for sewerage connection
ii. Construct and lay the infrastructure
Increase sewerage connections
CFM Continuous
Construction of Sanitation Blocks at Ngoino Road and Londiani Junction
i. Mobilize funds for sewerage connection
ii. Construct and lay the infrastructure
TM 2019
Increase water and Sanitation Coverage in low income areas by 10% each year
Improved Water and Sanitation coverage in LIAs
i. Establish a record system and Procedure for regular update for all information in low income areas
ii. Mapping of all LIAs and update as required
iii. Carry out baseline Survey to update population figures and service levels
iv. Carry out needs assessment and prioritization of intervention in low income areas
v. Regulate Kiosk operators vi. Finance Mobilization for
i. Data base for LIAs ii. Mapped LIAS and
updated in Maji data iii. Updated Population
figures
iv. Signed Contracts
CFM, Pro Poor Coordinator, TM
2019
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 39
Strategy Expected Outcome (s)
Activities Output Indicator (s) Implementing Actors
Time Frame
Upscaling Basic Sanitation for the Urban Poor
vii. Create a budget line for pro poor department in the Master Budget
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 40
THEME 3: OPERATIONAL EFFICIENCY Objective 3: To ensure that there is continuous provision of water and sanitation services with minimal interruptions Strategy Expected Outcome
(s) Activities Output Indicator (s) Implementing
Actors Time Frame
Time management Reduction in lateness, idleness
i. Setting well-defined roles. Proper Job Description for all.
HRAM July 2018
ii. Weekly time sheets and daily job cards for evaluation
iii. Monthly attendance register analysis
iv. Introduce departmental clocking register
v. Maximising on working hours.
vi. Timely response to bursts and leakages
Report on total tasks/duties accomplished per day/week versus the time used. Reduction in the number of complaints Improve on response time. Improved staff productivity Reduced NRW and customer complaints
HRAM/Dept Heads TM
December 2018
Adherence to the preventive maintenance schedule
Reduced down time i. Timely payments of suppliers and other obligations
ii. Ensure availability of stand-by pump set and generators
iii. Provision of protective gears
Maintained re-order levels Uninterrupted water production and supply Minimal work place injuries
PM, CFM TM, CFM, PM HRAM, TM
continuous
Embrace ICT in all Areas of Operation
Improved operational efficiency
i. Networking of branch offices
ii.Decentralization of operational software
iii. Continuous improvement of billing system
iv. Continuous addition of software
v. GIS mapping of water appurtenance and low income area
vi. Integration of billing system with the Website
Teleworking from all the branches Access to software from all the branches Efficient service delivery Reliable reports
ICTM, PM, CFM
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 41
vii. Procure and maintain ICT infrastructure
THEME 4: FINANCIAL SUSTAINABILITY
Objective 4: To increase revenue from Kshs.204 million in 2018 to Kshs.400 million by 2023 Strategy Expected Outcome (s) Activities Output Indicator (s) Implementing
Actors Time Frame
Financial Sustainability
1. Increase billing from:
17M – 19.5m by 2018 19 m by 2019 21 mil by 2020 32 mil by 2021 33.3 mil by 2022
i. Improve meter reading from 70% -100%
ii. Enhance meter reading efficiency to manage on commercial losses
iii. Optimize billing efficiency
iv. Timely revision of tariff
100% meter reading CFM 3 months
v. Re-evaluation of average assessment on unmetered customers annually
vi. Operate new water treatment plants
Re-evaluate 1500 customers
1 yrs
vii. Continuous supply of water
Customer satisfaction 5 yrs
2. Improve collection efficiency from 90% to 98%
i. Enhance the Integrity in revenue department by setting up control measures
ii. Strict adherence to 7day payment grace period
Increased collection efficiency
CFM
Immediately
iii. SMS alert notices on mass disconnection
iv. Mass disconnection
Quarterly
v. Entering to part payment agreement with
Immediately
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 42
customers with huge bills
vi. Appoint Debt Recovery Teams
vii. Enlist defaulters with Credit Reference Bureau (CRB)
Annually
3. Cost reduction i. Reduce of non-core expenditures
ii. Ensure 100% adherence to the budget
iii. Reduction in personnel and operation and maintenance costs
CFM, PM
HODs
MD, CFM, HRAM, PM
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 43
THEME 5: CUSTOMER SERVICE
Objective 5: To increase customer satisfaction by 10% annually Strategy Expected Outcome
(s) Activities Output Indicator (s) Implementing
Actors Time Frame
Customer Service Reduced customer complaints
i. Revise and implement Customer Service Charter
ii. Conducting 28 customer sensitization forums per year (two per scheme/Area)
iii. Hold Open days/ customer days at KEWASCO to address customer issues
Sensitised customers CFM annually
iv. Response to customer complaints as per service Charter
v. Carry out a customer satisfaction survey every two years and implement corrective measures
Satisfied customers within minimum service levels
THEME 6: INSTITUTIONAL RESTRUCTURING Objective 6.1: Operationalize institutional restructuring of the merged KEWASCO and TILWASCO to one highly performing water utility by 2023 Strategy Expected Outcome
(s) Activities Output Indicator (s) Implementi
ng Actors Time Frame
Operationalization of the new water utility – KEWASCO
A self-sustaining WSP for Kericho County
i. Dissolution of existing companies
ii. Amending MoU and Articles of Association
iii. Stakeholders engagement iv. Preparation of County
Subsidy proposal to TILWASCO Cost Centre
v. Preparation of Assets and Liabilities register
vi. Preparation of a harmonized tariff structure
New Company Amended Articles
and Memorandum of Association
Minutes of stakeholder engagement
Subsidy proposal document
Assets and Liabilities register
New Tariff
County government/BoD/CMT
June 2018
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 44
Strategy Expected Outcome (s)
Activities Output Indicator (s) Implementing Actors
Time Frame
vii. Application of Service Provision Agreement (SPA)
viii. Appointment of Board of Directors
ix. Operationalize the recommended organizational structure of the new water utility within one year
x. Enhance performance management through performance appraisals and reward
xi. Provide a conducive working environment
xii. Harmonization of pay structure
xiii. Enhance organizational culture change
xiv. Develop a succession plan/policy
xv. Prepare a Scheme of Service
New SPA Letters of
Appointment of BoD and Top management
Functional Organizational structure
Objective 6.2: To have a qualified, experienced, motivated workforce Strategy Expected
Outcome (s) Activities Output Indicator (s) Implementing
Actors Time Frame
Conduct departmental staff skills audit/ Training Needs Assessment
Areas for Capacity Building
i. Develop and administer questionnaires
ii. Data analysis.
Capacity Building manual.
HRAM, all departmental heads
July 2018
iii. Prioritize training needs areas and prepare a budget
iv. Source for trainers/institutions
Training work plan/budget
Trainings/workshops report
Assessment of the usefulness of training from the trainer/institution
Training Certificate
HRAM. Aug 2018 Sept
2018 Annually
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 45
5.2 STRATEGIC PLAN IMPLEMENTATION COORDINATOR
The previous Strategic Plan for former KEWASCO and TILWASCO were fairly implemented. In order to ensure that KEWASCO Strategic Plan is implemented successfully and realize its Vision and Mission aspirations, it is recommended that a Coordinator and an Assistant be appointed to track and coordinate implementation of the activities of the Strategic Plan. The work of the coordinator is to spearhead the implementation of the activities and ensure the timelines are adhered to.
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 46
CHAPTER SIX
INSTITUTIONAL STRUCTURE
KEWASCO Organizational structure consists of the Board of Directors, Managing Director, Six Departments and four Divisions. All except the Internal Audit department reports directly to the Managing Director, while the Internal Auditor reports to the Board but functionally operates under the Managing Director. Below is the organization structure for KEWASCO.
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 47
CHAPTER SEVEN
STRATEGIC FINANCIAL PLAN
This is the long-term Road Map for implementing the strategic objectives set out for
the next 5 years. This Plan will provide a perspective on how KEWASCO will commit to
undertake the activities set out under each objective and how success will be
measured. The Financial Plan will describe each activity, resource, equipment and
material needed to achieve the Strategic Objectives within the stipulated timeframe.
7.1 Funding Alternatives
In order for this Strategic Plan to be successfully implemented, resources mobilization
is key. In this regard, the National Government and County Government of Kericho
will devise ways and means of mobilizing finances from existing and new funding
sources. Such sources include but not limited to the County Government,
Development Partners and internally generated revenues.
7.2 Strategic Financial Plan
The total amount of financial resources required to effectively implement this strategic plan is Ksh 4.286 Billion as summarized in the table below: Table 10: Strategic Financial Plan Theme Expected Cost
(Kshs)
Sources of Funds
1 Non-Revenue Water 82,700,000 Internally Generated Funds, Water and Sewer sales, Public Private partnerships.
2 Water and Sanitation
Infrastructure
4,012,000,000 National Government Allocations Through WSBs, County Government Allocations, Public Private partnerships, Development partners.
3 Operational efficiency 123,350,000 Internally Generated Funds, Water and Sewer sales, Grants from County and National Government, Public Private partnerships.
4 Financial Sustainability 60,300,000 Internally Generated Funds, Water and Sewer sales, Grants from County and National Government
5 Customer focus 2,800,000 Internally Generated Funds, Water and Sewer sales
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 48
6 Institutional restructuring 5,000,000 Internally Generated Funds, Water and Sewer sales
Grand Total 4,286,150,000
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 49
The Strategic plan is further broken down and detailed as shown in the table below: Theme Objective Investment Costs
(Kshs) Non-Revenue Water To reduce the non-revenue
water to 30% by 2022 Formulation of NRW Policy
200,000 Kewasco-3,000 No meters
15,000,000 Tililbei -8,000 No meters
40,000,000 Prepaid meters for the LIA's-2,000 No
20,000,000
Quick response to repairs from 12 hours to 8 hours
7,500,000
Water and Sewerage Infrastructure
To increase water production from 16,000 cubic metres per day to 32,000cubic metres per day in the next 5 years.
Construction of a 13,000m3 capacity treatment plant in Kericho
1,400,000,000
Construction of a 2,500m3 capacity treatment plant in Litein
700,000,000
Upgrade raw water /partial treatment schemes to fully treatment schemes
Sosiot (1000 m3) 16,000,000 Londiani (1000 m3) 35,000,000 Chesinende (500 m3) 7,500,000 Fort Ternan (500 m3) 10,000,000 Bargeiywet (500 m3) 7,500,000 Kipsitet (1000 m3) 16,000,000 Feasibility Study and detailed design for a dam in Kimugu
7,000,000
Water bottling Plant 2,000,000 To expand sanitation coverage from 40% to 55% in the next five years. This will involve construction and rehabilitation of a Sewerage Treatment Plants
Londiani 790,000,000 Kericho 196,000,000 Litein/Kapkatet-Decentralised treatment facility
20,000,000
Kipkelion 700,000,000 Construction of Decentralised Treatment Facilities in the rural service area and satellite towns.
Kapsoit 20,000,000 Brooke 20,000,000 Kapsuser 20,000,000 Chepseon 20,000,000 Construction of Sanitation Blocks Ngoino Road 6,500,000 Londiani Junction 6,500,000 Implementation of 3rd phase of UBSUP (Nyagacho, Majengo)
12,000,000
Operational efficiency Replacement of assorted UPVC pipes with HDPE and PPR
Sosiot(2Km) 300,000 Londiani(5 Km) 750,000 Chesinende(4Km) 600,000 Fort Ternan(3 Km) 450,000 Bargeiywet(4Km) 600,000 Kipsitet(6 Km) 900,000 Litein(6 Km) 12,000,000 Kapkatet(4 Km) 600,000 Kericho(50Km) 100,000,000 Kapsoit(3Km) 450,000
Creation of DMA’s and Sub DMA’s
Area A 2,000,000 Area B 1,500,000 Area D 2,000,000 Area E 500,000 Area F 700,000
Financial Sustainability To increase revenue from Acquisition of motor cycles(20 4,000,000
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 50
Kshs.200 million in 2018 to Kshs.400 million by 2023.
No) Acquisition of vehicles (2no) 11,000,000 Acquisition of vehicles (2no) 15,000,000 Acquisition of water bowser (3no)
25,000,000
Improve metering from 70% -100%
Re-evaluation of average assessment on unmetered customers annually
300,000
Improve collection efficiency from 90% to 98%
SMS alert notices on mass disconnection
5,000,000
Mass disconnection
Entering to part payment agreement with customers with huge bills
Appoint Debt Recovery Teams
Enlist defaulters with Credit Reference Bureau (CRB)
Customer focus To reduce customer complaints Conducting 28 customer sensitization forums per year (two per scheme/Area
2,800,000
Institutional restructuring
Merging of the two water utilities
Operationalization of the new water utility - KEWASCO
5,000,000
7.3 Medium Term Financing Plan
KEWASCO will endeavor to mobilize adequate resources to successfully implement this strategic plan and achieve its vision. The current sources of finance comprise of User Fees (Water and Sewer Billings), grants from the Government of Kenya and concessionary loans from the development partners. In the transition period (medium term) KEWASCO operations will be funded from User Fees (Water and Sewer Billings), the Government, development partners and private investors.
7.4 Long-Term Financing Plan
For the long term KEWASCO plans to achieve financial sustainability by progressively innovating new financing models for mobilizing funds for infrastructure rehabilitation and expansion. The identified sources of financing available to finance capital expenditure are indicated in the table below:
Table 11: Source of Funds for Strategic Plan
No Source of Funding
Summary of how it will be realized
1 User fees from Customers
This is the main source of Revenue for KEWASCO. This comprises of Billings for Water and Sewerage services to consumers operating within its area of jurisdiction.
2 Asset development levy
The Tariff provides for establishment of a sewerage levy. KEWASCO will include in its tariff application a sewerage levy fund to support investment in sewerage infrastructure and connections.
3 Partnerships with KEWASCO will establish formal relationship with the county governments
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 51
No Source of Funding
Summary of how it will be realized
county governments
and Water Works Development Boards (Formerly WSBs) in order to access finances for development of Water and Sewerage Infrastructure.
4 Development Partners
Investment requirements for water supply and sewerage infrastructure is normally very high but with low rate of return. There are a few Private organizations that are willing to invest in large WSS projects because of lack of awareness of investment opportunities in this field. KEWASCO will seek donor support, especially for development of Water and Sewerage infrastructures in areas with no adequate water services through grants and concessional loans.
5 Water Services Trust Fund
The Government of Kenya has established a water trust fund whose core duty is to finance the provision of quality water and sanitation services in underprivileged areas of Kenya. KEWASCO will play an active role in helping such communities’ within its area of Jurisdiction access funds from the Trust Fund. This will involve identification of communities without adequate water services and helping such communities to develop proposals and apply for grants from the Water Trust Fund.
6 Public Private Partnerships (PPP)
KEWASCO will source funds from the market through Public private partnership , Issuance of infrastructure bonds , Private equity placements
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 52
CHAPTER EIGHT
MONITORING AND EVALUATION
8.1 OBJECTIVES OF MONITORING AND EVALUATION
To be able to attain the desired outcome from the identified strategies, the Strategic
Plan must be carefully implemented. Successful implementation of the plan requires
clarity in decision making, consistent information flow, provision of incentives and
structuring the organization to suit the strategies put in place. Further, there is need
to have a coordinator to oversee the implementation process.
8.2 MONITORING AND EVALUATION (M & E) FRAMEWORK
Monitoring and evaluation of the Strategic Plan will be undertaken a coordinator and
an assistant. The following M & E framework will be put in place in order to ensure
implementation of the strategic plan:
i. The departmental head will be responsible for implementation of activities at
the departmental level.
ii. The coordinator will hold monthly meetings to review on the implementation
plan progress
iii. The departmental heads will develop quarterly reports to the Board on the
progress of the strategic plan implementation.
iv. A midterm review of the strategic plan will be undertaken to ensure that
necessary re-alignment in the objectives, strategies, activities among others
are effected as informed by new information regarding the Company or the
environment.
Note: The key performance indicators in section 8.3 will provide guidance on more
objective review of the progress of the strategic plan implementation.
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 53
8.3 KEY PERFORMANCE INDICATORS
Table 10 shows the projected key performance indicators (KPIs) for financial and non-financial targets set for the
year 2018 to 2023.
KPI CURRENT 2018/19 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024
Number of water connections 26,415 27,945 29,404 31,078 32,754 37,950 Number of sewerage connections 5,550 5,981 6,913 7,404 7,876 8,457
Revenue (monthly) 18,326,046 19,398,337 20,424,459 21,660,494 22,962,349 24,108,579 Water supply (m3)/day Water billed (m3) 153,802 160,842 167,883 174,924 181,965 189,006 Non-revenue water (m3) 76,901 73,987 70,511 69,970 69,147 66,152
NRW (total %) 50 46 42 40 38 35
Billing efficiency (%) 58 62 65 68 71 74
Water coverage (%) 70 73 76 78 80 82
Collection efficiency (%) 76 83 90 96 96 96 Operating expenses/Total revenue 60 55 50 45 40 35
Customer satisfaction 8 8 9 9 10 10
Employee satisfaction 6 7 7 7 8 8
Number of staff 183 59 195 197 207 207
Number of active staff 183 59 195 197 207 207 Number of staff per 1000 active connections 10 10 10 10 10 10
WASREB ranking 20 15 12 10 9 5
No. of supply hours 24 24 24 24 24 24 Water quality (compliance with KEBS/WHO) (%) 100 100 100 100 100 100
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 54
8.4 ACCOUNTABILITY AND RISK MANAGEMENT
8.4.1 Accountability
Timely deployment of resources as well as effective monitoring, evaluation and
reporting of the implementation status is key for the Company to have the intended
impact in provision of water and sanitation services. To enhance implementation, the
Company shall:
i. Effectively communicate the plan to all staff and other key stakeholders to ensure
clarity of vision ,mission and also to seek their support;
ii. Assign and communicate roles and responsibilities to the various implementing
actors;
iii. Mobilize and allocate resources as per prioritized activities identified in the
Strategic Plan;
iv. Develop and communicate quarterly work plans for departments, sections and
individuals in line with the Strategic Plan;
v. Ensure work plans and performance contracting parameters are derived from the
Strategic Plan implementation matrix; and
vi. Carry out Capacity Building of staff on implementation of the Strategies as
necessary.
8.4.2 Risk Analysis
Risk analysis is very critical in order to have a successful implementation plan. Risks
impact potential should be treated in terms of its severity to affect the business.
Implementation of this Plan is likely to face prone to various risks among them,
operational, financial, strategic and technological. The specific risks under each of
these categories are outlined below:
8.4.2.1 Strategic Risks
i. Some stakeholders may oppose some of the proposed programmes/activities.
ii. Weak monitoring, evaluation and reporting may interfere or delay implementation
of the Plan.
iii. Political influences may interfere with implementation of the Plan.
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 55
8.4.2.2 Operational Risks
i. Lack of support from key stakeholders.
ii. Inability to synchronize budgeting with procurement plans.
iii. Lack of clear policies and procedures may hinder successful implementation.
iv. Poor integrity of the staff.
v. Aging workforce
vi. Senior staff turnover
8.4.2.3 Financial Risks
i. Inadequate funding may affect the implementation of projects
ii. Delay and default in payments by customers.
iii. Delay in paying suppliers and creditors
iv. Low water tariff
8.4.2.4 Technological Risks
i. Lack of funds to acquire the requisite equipment.
ii. Inability to keep pace with the rapid technological changes.
iii. Resistance to adoption of new technological changes by staff
8.4.3 Mitigation, Monitoring and Reporting of Risks
To mitigate the effects of the above risks, the Company will implement the following
measures:
i. Strategic
Seek consensus among the County leadership and politicians particularly
Members of County Assembly (MCA’s)
Seek effective collaboration and sharing of successes and challenges with
WASREB and other WSP’s
County Government to develop a communication plan detailing the
advantages of one utility as opposed to several utilities in the County; the
communication plan should be disseminated up to the ward level.
ii. Financial- Adopt project/activity-based budgeting and prudent management of
funds.
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 56
iii. Operational- Put in place strategies to attract and retain qualified staff, provision of
conducive work environment and development of requisite policies and procedures
for growth.
iv. Technological-keep abreast with changes in technology, undertake upgrading of
equipment and regular training of staff.
v. Enhancing Monitoring, Evaluation and Reporting for early detection and
management of any risk.
Kericho Water Supply and Sanitation Company Ltd 2018 – 2023 Strategic Plan 57
ANNEXES ANNEX 1: Other water schemes operated by TILWASCO
Water Scheme
Design Capacity Actual
Production
1. Chesinende Water Supply System 1200 m3 per day 100 m3 per day
2. Londiani Water Supply System 780 m3 per day 400 m3 per day
3. Sosiot Water Supply System 720 m3 per day 300 m3 per day
4. Bargeiywet Water Supply System 80 m3 per day 30 m3 per day
5. Kipkelion Water Supply System 1000 m3 per day 360 m3 per day
6. Sigowet Water Supply System 34 m3 per day Nil
7. Forternan Water Supply System 600 m3 per day 120 m3 per day
8. Kipsitet Water Supply System 480 m3 per day 80 m3 per day
TILWASCO currently does not have a sewer network, however it provides exhauster
services in Litein, Kapkatet and other areas within and outside Kericho County.