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Water Services Trust Fund
UPC Mission Report,Kisumu
June 2008
Water supply in Obunga area, Kisumu
John Orwa
Sheillah Karimi
Han Seur
Water Services Trust Fund
UPC Mission Report,Kisumu
June 2008
Table of Contents
1Introduction
2The Nyelenda Delegated Management Model (DMM)
2.1Water Supply in Nyelenda
2.2Description of the DMM
2.2.1Hardware
2.2.2Software
2.2.3Water Supply in Katuoro (part of Nyelenda)
2.3Revenue and Population Served
2.4Main Advantages of the DMM
2.5Main Disadvantages of the DMM
2.6Value for Money
2.7Involvement of the Community
List of Abbreviations
1Introduction
The objectives of the WSTF/GTZ mission to Kisumu can be summed up as follows:
- Assessment of the Delegated Management Model (DMM) operated by KIWASCO.
- Evaluation of a number of sites identified by the GTZ Ecosan Team.
The mission, which took place from Tuesday the 27th until Friday the 30th of May 2008 was carried out by:
- Eng. John Orwa (Head of the WSTF Urban Team).
- Sheillah Karimi (Socio-economist of the WSTF Urban team).
- Han Seur (Advisor,GTZ).[1]
2The Nyelenda Delegated Management Model(DMM)
2.1Water Supply in Nyelenda
Nyelenda has an estimated population of 60,000 persons. The area is served through the old KIWASCO distribution network as well as through the extension which was made within the framework of the Nyelenda DMM project.
The old network is still supplying a majority of all residents (966connections/customers, many of them not metered).
The DMM scheme has 325 connections, but its technical condition is poor. The network has many leakages which to some extend are caused by the large number of illegal connections and mobile meters[2]. According to KIWASCO unaccounted for water (UfW) is approximately 65%.
2.2Description of the DMM
The DMM, which is in operation for more than 2 years, consists of a hardware and a software (management) component.
2.2.1Hardware
The Nyelenda project, which was financed by the French Embassy and received support from the Water and Sanitation Programme (WSP), extended the KIWASCO distribution network with approximately 600 metres (50 mm PVC) in order to reach additional residents. There are 5 master meters which are read by the Company. The KIWASCO network (beyond the master meter) ends in a number of meter chambers (see picture 2.1). Thirteen (13) chambers were constructed on each of the 5 lines.
Currently the DMM scheme has 325 connections.
Although the DMM scheme boasts a number of water kiosks, these were not constructed by the project. Most kiosks are not much more than a yard tap and were constructed by the owner of the (kiosk) connection (see picture 2.2).
Picture 2.1: Meter chamber in Nyelenda
2.2.2Software
The network between the master meter and the meter chambers is managed, on behalf of the Company, by 5 Master Operators (3 groups and 2 individuals). The Company and the Master Operator (MO) sign a renewable one-year contract. The DMM assigns the following responsibilities to the Master Operator and KIWASCO:
KIWASCO:
- Monitoring of water quality (including point of use quality testing).
- Tariff setting (the tariff the MO has to pay, the tariffs for domestic and commercial connections and kiosks as well as the tariff kiosk customers have to pay).
- Monitoring the performance of the MO and replacing non-performing groups (the master meter connection is never disconnected).
- Customer care (customers can call the KIWASCO Hotline).
- Major maintenance and repair work.
- Setting technical standards and supervision of network extensions.
The Master Operator:
- Reading private connections.
- Issuing water bills.
- Minor maintenance and repair works.
- Paying KIWASCO on the basis of the readings of the master meter.
- Processing requests for new connections.
- Realising new connections.
- Disconnections.
KIWASCO sells water at KSh 25/m3, which is only slightly above the production cost of water (being KSh 18/m3).
The MO charges kiosk operators a tariff of KSh 37/m3. Kiosk customers pay KSh 2 for a full 20-litre container 9which contains approximately 22 litres).
All MOs are represented in the Nyelenda Water and Sanitation Committee. This committee meets every 2 months.
One KIWASCO officer is assigned to the project.[3]
Picture 2.2:Water kiosk in Nyelenda, Kisumu
2.2.3 Water Supply in Katuoro (part of Nyelenda)
Katuoro has an estimated population of 8,000 persons.
The Katuoro Self Help Groupis a registered group which, after having won the tender and after having signed a contract with KIWASCO[4], acts as the MO in Katuoro area. The group has 34 members, but only 20 members are considered to be active members.
The group manages 12 meter chambers and has 89 customers (including 5 water kiosks and 5 commercial customers).
New domestic customers have to pay a refundable deposit of KSh 1,000, whereas commercial customers pay a deposit of KSh 5,000. [5]
The kiosks are operated by individuals and groups (one of the kiosks is operated by a women’s group consisting of 14 women).
The collection efficiency of the Katuoro Self Help Group ranges between 80 and 90%.
Currently 10 customers are disconnected due to the non-payment of bills.
The Katuoro MO has realised the extension of the network (354 meters) and has constructed 3 meter chambers (the costs incurred were added to the deposit with KIWASCO).
Some of the proceeds of the group were used to upgrade the local road. [6]
2.3Revenue and Population Served
Table 2.1 shows the average revenue as well as the estimated monthly consumption. The table also shows the maximum number of people served if we assume that each resident requires a minimum of 20 litres of safe water per day.
Table 2.1:Average monthly collections, consumption maximum number of people served
Customer: / Average collection / % / M3 / Max. number of people served (*)MO1 / 80,000 / 9 / 3,200
MO2 / 35,000 / 4 / 1,400
MO3 / 16,000 / 2 / 640
MO4 / 18,000 / 2 / 720
MO5 / 35,000 / 4 / 1,400
All MOs / 184,000 / 21 / 7,360 / 12,266
KIWASCO / 690,000 / 79 / 12,545 / 20,908
Total: / 874,000 / 100 / 19,905 / 33,174
Source: KIWASCO (verbal assessment by responsible staff member)
*): Assuming a minimum consumption of 20 litres/person/day
2.4Main Advantages of the DMM
The main advantages of the delegated management Model can be summed up as follows:
- The Company is in full control of the scheme (tariffs, service levels, technical standards, water quality and customer care) and a senior staff member has been assigned to the scheme.
- Residents of the project area are involved in the operation of the water supply scheme.
- Collection efficiency is high.
- Groups (MOs) are investing in community projects (such as the upgrading of roads).
- The scheme provides job opportunities for residents of the area.
- Non performing groups can be replaced without this having a negative impact upon supply (no disconnections).
According to a staff member of the Company, the DMM has enabled the Company (WSP) to establish a sustainable water supply scheme which involves the participation of residents. Collection efficiency is likely to remain high. According to a staff members of KIWASCO:
“You see, the groups have invested a lot in their system. Risking losing this investment by not paying our water bill? I do see that happening.”
2.5Main Disadvantages of the DMM
The disadvantages of the DMM can be summarised as follows:
- MOs find it difficult to manage the distribution network between the master meter and the meter chambers.
- MOs have been unable to prevent vandalism. [7]
- Some MOs are unable (or unwilling?) to pay their monthly bill.
- The creation of an additional management layer (the MO) forces the Company to sell water to the MO at a very low tariff (fixed per m3). In other words, the WSP cannot benefit from a rising block tariff scheme.
- The MO may lack the capacity to develop required extensions on the other hand the group is at liberty to look for funding from other sources.
- There is no clear reason why the Company, using staff recruited from within the area, could not achieve the same, or even better, results.
The Katuoro group owes the Company KSh 22,000 and the Company intends to terminate the contract with another group which owes KIWASCO KSh 174,000.[8]According to the Katuoro MO, the discrepancies between the readings of the master meter and the added readings of the metered connections explain the shortfall.
According to a male member of the Katuoro MO:
“The problem we have is that it is the MO who suffers when there is a pipe burst on the main line, between the master meter and the meter chambers. Also when there is a case of vandalism, like the theft of a meter, we have to pay for the damage and the water. We believe that we have a business partnership with the Company, they should assist us. ”
The staff member of KIWASCO, who accompanied the team during the field visit, replied as follows:
“But the tariff we charge is very low, we just charge the groups the production cost of water.”
2.6Value for Money
The cost of the project was KSh 7.9 million. If only considering the infrastructural investments that were made, one has to conclude that the project is relatively expensive.
2.7Involvement of the Community
It would be wrong to label the DMM scheme as being managed by the community. Although the MOs consist of residents, the groups and individuals cannot be said to represent the entire community. Outside the MOs no residents are involved in the management of the scheme. Moreover, it is KIWASCO and not the “community”, which is setting the rules.
List of Abbreviations
DMM:Delegated Management Model
GTZ:German Technical Cooperation
KfW:German Development Bank
KIWASCO:Kisumu Water and Sewerage Company
KSh:Kenyan Shilling
MO:Master Operator
PVC:Poly-vinyl chloride
UfW:Unaccounted for water
UPC:Urban Projects Concept
WSB:Water Services Board
WSP:Water Service Provider
WSTF:Water Services Trust Fund
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WSTF Kisumu – Kericho Mission Report May 2008
[1] The WSTF team wishes to thank the staff of KIWASCO as well as the staff of the Lake Victoria South Water Services Board for their hospitality and support.
[2] Water meters which are temporarily removed/by-passed by the owners of the connection.
[3]The same staff member is also responsible for other low income areas.
[4] The MO has to pay the Company a deposit of KSh 30,000.
[5] KIWASCO charges its domestic customers a deposit of KSh 1,800 and commercial customers KSh 10,000.
[6] Nyelenda is prone to flooding and most local roads and drains are in poor condition.
[7] According to KIWASCO most acts of vandalism are committed by residents with illegal or un-metered connections who are selling water to other residents at a price which is higher than the official one charged at the kiosks.
[8] The Company has also received a large number of complaints from customers.