NANYUKI WATER & SEWERAGE COMPANY

BUSINESS PLAN
July 2019 to June 2024

supported by
 NAWASCO: Business Plan 2019-2023

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NAWASCO: Business Plan 2019-2023

TABLE OF CONTENTS

ACKNOWLEDGMENTS v
ABBREVIATIONS AND ACRONYMS vi
EXECUTIVE SUMMARY vii
1. INTRODUCTION 1
1.1 Background 1
1.2 Mandate 1
1.3 Ownership 1
1.4 Vision and Mission 1
1.5 Core Values 1
1.6 Governance Structure 2
1.7 Policy and Regulatory Framework 3
1.8 Management Structure 6
1.9 Achievements 8
1.10 Challenges 8
1.11 Business Environment 8
2. CURRENT STATUS 10
2.1 Current Status of Water Services Provider Capacity 10
2.2 Current Status of Water Services Area 12
2.3 Current Status of Water Services Infrastructure 13
2.4 PESTEL AND SWOT ANALYSIS 14
3.0 STRATEGIC PLAN 19
3.1 Strategic Objectives 19
3.2 Performance Improvement 20
3.3 Revenue Improvement Strategy 22
3.4 Pro Poor Strategies 22
3.5 Risks and Mitigating Measures 23
4. FINANCIAL PLAN 25
4.1 Future Capital Requirements 25
4.2 Grants 25
4.3 Principal Financial Assumptions 25
4.4 Balance Sheet 26
4.5 Ratios 28
4.6 Sensitivity Analysis 29
5. MONITORING AND EVALUATION 30
ANNEXES
Annex 1: Documents for Review 32
Annex 2: List of Board and Managers in Business Planning Meeting 33
Annex 3: Staffing Projections 34
Annex 4: Implementation Plan 2019-2023 38

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 NAWASCO: Business Plan 2019-2023

TABLE OF CHARTS

Table 1: NAWASCO Shareholding Status 1

Table 2: Board of management composition 2
Table 3: The Water Institutions and Their New Names under Water Act 2016 4
Chart 1: Organizational Structure 7
Table 4: Achievements Made by the Company to Date 8
Table 5: Number of Customers by Type 10
Table 6: Number of Connections 10
Table 7: NAWASCO Income Statements in 2016-2018 (KShs) 11
Table 8: Existing Distribution Network 11
Table 9: Existing Sewerage System 12
Table 10: Current Service Levels 12
Table 11: Water demand projection analysis 14
Table 12: The PESTEL Analysis 15
Table 13: The SWOT Analysis 18
Table 14: Strategic Objectives and Follow Up Action 19
Table 15: Performance Indicators and Benchmarks 20
Table 16: Risks and Mitigating Measures for the Strategic Objectives 23
Table 17: Implementation plan CAPEX Budget 25
Table 18: Grants 25
Table 19: Assumptions 26
Table 20: Income Statement 27
Table 21: Cash Flow Statement 27
Table 22: Balance Sheet 28
Table 23: Ratios 28
Table 24. Sensitivity Analysis Scenario: Charge deprecation of the
immovable asset 29

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ACKNOWLEDGMENTS

The Nanyuki Water and Sewerage Company (NAWASCO) Business Plan for the year 2019 – 2023 has been generously
supported by funds from the Kenya Market Trust (KMT). We would like to recognize the invaluable support and
contribution of: the KMT team led by Mr. Abdi Wario and the NAWASCO management team led by Mr. Kennedy Gitonga.
We also wish to thank all respondents including, but not limited to the NAWASCO Board of Directors, NAWASCO staff;
and ADREC Limited led by Mr. Michael Kamotho and Mr. Boniface Makau.

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 NAWASCO: Business Plan 2019-2023

Abbreviations and Acronyms

ASAL: Arid and Semi-Arid Lands

CBA: Collective Bargaining Agreement
CEC: County Executive Committee
CI: Continuous Improvement
BoD: Board of Directors
EMCA: Environmental Management and Conservation Act
ESIA: Environmental and Social Impact Analysis
HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome
HR: Human Resources
ICT: Information and Information Technology
IRR: Internal Rate of Return
ISO: International Standards Organization
JD: Job Description
KEBS: Kenya Bureau of Standards
M&E Monitoring and Evaluation
MDG: Millennium Development Goals
MTEF: Medium Term Expenditure Framework
MTP: Medium Term Plan
NAWASCO: Nanyuki Water and Sewerage Company
NEMA: National Environment Management Authority
NGOs: Non-Governmental Organizations
NHIF: National Hospital Insurance Fund
NPV: Net Present Value
NRW: Non-Revenue Water
NSSF: National Social Security Fund
NWWDA: Northern Water Works Development Agency
O&M: Operation and Maintenance
PAYE: Pay As You Earn
PBBs: Programme Based Budgets
PESTEL: Political, Economic, Socio-Cultural, Technological, Environmental and Legal
R&D: Research and Development
RTA: Review of Tariffs
SDG: Sustainable Development Goals
SMS: Short Message Service
SPA: Service Provision Agreement
SWOT: Strengths, Weaknesses, Opportunities and Threats
WASREB: Water Services Regulation Board
WRA: Water Resources Authority
WRUAs: Water Resource Users Associations
WSP: Water Services Provider
WSS: Water Services Strategy
WSTF: Water Sector Trust Fund
WWDA: Water Works Development Agency

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NAWASCO: Business Plan 2019-2023
Executive Summary
Rationale
The national policies including Constitution 2010, Vision
2030 and Water Act 2016, among others, have affirmed
access to clean adequate water as a basic human
right. In positioning itself to meet this mandate for the
Nanyuki people, Nanyuki Water and Sewerage Company
(NAWASCO) has been preparing Strategic Plans as well as
Business Plans as tools to assist in moving forward with
this agenda. This is the third Business Plan for Nanyuki
Water and Sewerage Company (NAWASCO). The first
and second plans were done for 2008-2013 and 2013-
2018. As the second plan comes to an end, NAWASCO
has prepared a new 5 year Strategic Plan for 2019-2023.
Consequently, to the extent that the Business Plan spells
the implementation mode for the Strategic Plan, it has
become imperative to prepare the Business Plan for
2019-2023.
The Company and Its Mandate
The company was formed in December 2005 and
became operational in January 2007 under the reforms
of the Water Act 2002. NAWASCO is wholly owned by the
Laikipia County Government. It is mandated to provide
water and sanitation services within Nanyuki Town and its
environs which include parts of Nyeri and Meru Counties
which constitute 18% and 12% of the area covered
respectively. It covers a total of 286 square kilometers.
It has been estimated that the company was serving
a population of 161,438 in 2018, projected to rise to
191,739 by 2023. This mandate is conferred to NAWASCO
within the License Agreement. As the administrative
and commercial centre of Laikipia, the town of Nanyuki
places a major responsibility on NAWASCO to rise up to
the expectations of the County Government in serving
the company’s customers. The existing number of
customers in 2018/19 totals to 136,286 and is estimated
to rise to 173,939 in 2023/24. The company currently
has 14,026 active water connections and 8,605 sewer
connections, all totalling 22,631. The water monthly
cumulative demand (m3/month) is currently 494,214 m3
and this is projected to increase to 736,361 m3 by year
2023. The company is unable to meet the water demand
requirements in the area.
vii
Guiding Vision and Mission
The company’s performance is anchored on a vision of
being a “premiere utility in excellent service delivery”. Its
core mission is “to sustainably provide excellent water and
sanitation services through professional and competitive
practices to the satisfaction of all its stakeholders”.
Governance Structure
The Board of Management has 8 members, of which four
are women, thus exceeding the minimum requirement
of a third gender representation of any of the genders as
required by the Constitution of Kenya. Three committees
assist the Board in its work, namely the Finance and
Administration Committee, the Technical and Strategic
Planning Committee and the Audit, Risk and Governance
Committee. An up to date Customer Service Charter has
been prepared reflecting the minimum expectations on
the company’s level of service and what is to be done if the
level falls below certain expectations. Other important
policy documents include Board Policy Manual, Financial
Manual, Human Resources Manual, Audit Manual and a
Collective Bargaining Agreement (CBA) for unionisable
workers.
Staff Establishment
The Company has a total 74 members of staff, out of
whom 62 are permanent and pensionable (p&p) and 12
are on contractual terms. 8 of the currently contracted
staff are in management cadres. The company intends
to replace all staff on permanent and pensionable to
contract in future. A training plan exists for upgrading
skills of the staff but a fully-fledged policy on skills
development for the company needs to be developed.
Challenges
The main challenges faced by the company include
rampant theft of manhole and water chamber covers;
unreliable water source during the dry period of
January to March and also attributed to climate change;
dilapidated water pipeline; vandalism of pipeline and
associated appurtenance and illegal connections. Some

of the mitigation measures to meet these challenges
include construction of dams; continued replacement of
old pipelines, including replacement of asbestos cement
pipes: 60% of the piping is deemed as old while there
are some 50 km of asbestos piping; expansion of the
water distribution and sewer networks to various areas;
and raising funds for these proposed infrastructure
developments.
Resources
In order to address the above challenges and their stated
resolution, the company has estimated that it requires
resources to the tune of Ksh 2,366,270,539over the next
five year period from 2019 to 2023 to finance its recurrent
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NAWASCO: Business Plan 2019-2023
and capital expenditure. The raising of these resources
will require a multipronged approach including tariffs,
taxes, transfers and repayable finances.
Monitoring and Evaluation
In order to realize the above strategic objectives and the
financial projections, close monitoring and evaluation
will need to be instituted to ensure that the strategic
objectives targets are met and the financial projections
are adhered to as much as possible. The Implementation
Matrix presented in the report will be the basis of a
biannual review of the performance of the company in
procedures, practices and results.
NAWASCO: Business Plan 2019-2023
1 INTRODUCTION
1.1 Background
Nanyuki Water and Sanitation Company (NAWASCO)
is one among the publicly owned water companies
that were formed throughout Kenya under the water
sector reforms introduced in the Water Act 2002, and
subsequently the Water Act 2016. Today there are 88
such companies registered with the Water Services
Regulatory Board (WASREB) providing water, sewerage
and sanitation throughout the country1. These
companies, although publicly owned, are required to
operate within the business principles of private sector
enterprises, hence the need for development of Strategic
Plans as well as Business Plans, the latter being the
implementation blueprints of the Strategic Plans. Apart
from their budget plan projections, the Business Plans
would also state clearly plans for resource mobilization
as well as involvement of stakeholders in policy and
decision making. Further, the management and
governance practices as well as risk mitigation policies to
secure those resources and put them to the best/optimal
use is of key interest in those Business Plans. More
specifically, NAWASCO was formed in December 2005
and became operational in January 2007. NAWASCO
recently prepared a new Strategic Plan to cover the
Table 1: NAWASCO Shareholding Status
Shareholder Position
Governor of Laikipia
CECM for Finance
CECM for Water Environment & Natural Re-
sources
County Secretary
Total
1.4 Vision and Mission
The company’s stated vision and mission are as follows:
Vision: To be a “premiere utility in excellent service
delivery”.
Mission: “To sustainably provide excellent water and
1
WASREB. 2018. Impact, Issue No. 10.
1
next five years, 2019 to 2023 and this business plan
endeavours to articulate how the Strategic Plan for 2019-
2023 will be implemented.
1.2 Mandate
NAWASCO is mandated to provide water and sanitation
services within Nanyuki Town and its environs which
include parts of Nyeri and Meru Counties which constitute
18% and 12% of the area covered respectively. It covers a
total of 286 square kilometers and serves a population of
about 161,438. This mandate is conferred to NAWASCO
within the License Agreement made between NAWASCO
and the Water Services Regulatory Board.
1.3 Ownership
NAWASCO was incorporated under the Company’s
Act, Cap 486, of the Laws of Kenya in December 2005
under the full ownership of the defunct Municipal
Council of Nanyuki. This ownership has passed on to
the successor of the Municipal Council which is now the
County Government of Laikipia under the provisions of
Constitution 2010 of Kenya and subsequent attendant
devolution legislations. The company is limited by shares.
The shareholding is described in table 1 shown below.
No. of Shares
97
1
1
1
100
sanitation services through professional and competitive
practices to the satisfaction of all its stakeholders”.
1.5 Core Values
NAWASCO has established core values which will guide
the company in its provision of services. The track record

of the company will be monitored and evaluated regularly
to ensure that these values are actualised continuously.
NAWASCO core values abbreviated as ‘IREST’ are:
I-Integrity and Professionalism – Believe in carrying out
our duties diligently and we will work towards realization
of this core value. Our employees are qualified to serve
the customers and provide reliable response to their
needs;
R- Respect for Diversity – Always ready and willing to
accommodate new and diverse skills from different
cultural backgrounds in their areas of expertise and have
respect for varying opinion and composition.
E- Environmental Sustainability – work towards
conserving the environment and protecting our
catchment areas which is the source of our raw material.
Table 2: Board of Directors Composition
Representing
1 Laikipia Government
2 Nanyuki resident organization
3 Nanyuki professionals
4 Women Representative
5 Youth Organizations
6 Faith based organizations.
7 People with disability
8 Business Community
The following are the Board of Directors characteristics:
a. Four women sit in the Board thus meeting the
minimum of one third gender representation of
any of the genders as required by the Constitution
of Kenya.
b. oard of management have established three
Board Committees as follows: Finance and
Administration Committee, Technical and
Strategic Planning Committee and Audit and Risk
Coverage Committee.
c. A plan for meetings on quarterly basis for the
Board and each Committee.
d. Board members have been trained on corporate
governance.
e. Regular Board internal self-evaluation. However,
external evaluation practice not yet b e e n
introduced and needs to be instituted.
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NAWASCO: Business Plan 2019-2023
S- Stakeholder Participation – Involve all our stakeholders
in the decision making process at different capacities
and keep them informed though prudent feedback
mechanism.
T- Teamwork and Results Oriented - Work in cohesion
to deliver the best outcome and we aim at achieving all
stakeholders’ satisfaction and at the same time observe
timeliness.
1.6 Governance Structure
NAWASCO has established key governance structure
which includes a Board of Directors comprising of 9
members drawn from the County Government of Laikipia
and other stakeholders. Table 2 shown below describes
the Board of Directors composition.
Number of membership
2
1
1
1
1
1
1
1
The following manual and tools exist in the organisation
and are used to guide the company’s management and
operations:
a. An up to date Customer Service Charter for
minimum service level. The charter is revised from
time to time depending on changing realities and
resources.
b. Board Policy Manual.
c. Financial Manual to guide financial operations.
d. Human Resources (HR) Manual.
e. Collective Bargaining Agreement (CBA) for
unionisable workers.
f. Customer satisfaction survey done every 2 years
as required by WASREB guidelines.
g. ICT Policy
h. Audit Manual
NAWASCO: Business Plan 2019-2023
1.7 Policy and Regulatory Framework
1.7.1 National Policies
A number of policies affecting the water sector are
to be found in various documents. These include the
Constitution of Kenya 2010, Vision 2030, the Water Act
2016, the National Water Management and Services
Policies, Pro-Poor Implementation Plans, Various Ministry
of Water and sector services and water management
strategic plans, the County Integrated Development
Plans, amongst others.
1.7.2 The Constitution of Kenya 2010
Since independence, Kenya has had three constitutions.
These constitutions were enacted in 1963, 1969 and
2010 with many amendments in-between, mainly of a
political nature. None of the first two addressed issues
of water or natural resources or let alone rights to these
resources. Following many years of political activism
in the country and international declarations to which
Kenya has been part of, key changes were made in the
Kenyan constitution in 2010 which recognized the rights
to water by the citizens of the country. The international
declarations include, for example, the Millennium
Development Goals (MDGs) and the Sustainable
Development Goals (SDGs) among others, to which
Kenya is signatory and endeavours to implement.
1.7.3 Vision 2030
Vision 2030 was published in 2007 after extensive
nationwide consultations as well as international inputs.
It was hailed as Kenya’s new development blueprint for
development covering the period 2008-2030 aiming
to transform Kenya into a newly industrialising middle
income country providing a high quality of life by the year
2030. The vision is based on three pillars: the economic,
social and political pillars. Water and sanitation services
are included in the social pillar/strategy. The Vision was
expected to be implemented through 5 year Medium
Term Rolling Plans (MTPs) with matching 5 year Medium
Term Expenditure Frameworks (recently renamed
Programme Based Budgets, PBBs). The challenges of
implementing Vision 2030 are reflected in the fact that
annual growth of the economy was expected to increase
at a rate of 10% and poverty was expected to be reduced
from 46% to 28% during the first MTP of 2008 to 2012.
Today, growth has been at best about 5% and the poverty
level is still at 45%.
3
1.7.4 The Medium Term Plans
To date, there has been formulated two MTPs, namely
MTP 2008 to 2012 and MTP 2013 to 2017. The first MTP
indicated a number of emerging challenges in the area
of water resources and services. These were:
yy Water scarcity which indicated that renewable
fresh water per capita stood at 647 cubic meters
and was projected to fall to 235 cubic meters by
2025 if supply does not keep up w i t h
population increase. This, measured against a
world standard minimum of 1,000 cubic meters
per head, is quite low.
yy Regional imbalances in water availability and
utilisation in that, the highland areas, the coast
and the lake region were said to have better water
access than the ASAL regions.
yy High levels of unaccounted for water estimated at
50 per cent.
yy Distances to the nearest water points posed a
challenge particularly to women and girls who
bear the responsibility of fetching water. Most
time is spent on this activity hence compromising
the girls’ education and time for other productive
activities for the women.
yy Deforestation has caused severe degradation of
the country’s main water towers which has
led to reduced flows in a number of rivers thereby
disrupting water and electricity supply.
yy Water quality deterioration which has gone
on overtime due to a number of factors
such as increased commercial farming
activities, rapid industrialisation and laxity in
law enforcement. In most cases effluents
and chemical waste from various sources are
discharged directly into water bodies.
yy Poor physical planning in urban areas, coupled
with the proliferation of unplanned settlements
which pauses a challenge to the provision of safe
drinking water.
yy Low levels of water resources monitoring covering
only 30 per cent of the total estimated
available supply. This constrains effective water
resource planning and management.
yy Climate change resulting in the rapid and drastic
disappearing of glaciers on Mt. Kenya with forecasts
that the ice cap on the mountain could disappear
by the year 2020. This has serious implications as
Mt. Kenya is one of the leading water towers in the

country. It is also said that the incidences of hot
days and nights have been observed to be on the
increase. Water levels in Lake Victoria and other
lakes such as Nakuru, Turkana, Baringo, Naivasha
and Elementaita are also said to have experienced
serious declines. Further, similar drastic changes
have been observed in volumes of river flows.
The above challenges cut across and affect many water
sector institutions in the country and are a summary of
the challenges highlighted in most of the policy papers
from the various institutions mentioned above and
need not be repeated for each institution. Today, these
challenges remain a major concern of many water service
providers in the country, including NAWASCO.
1.7.5 The Water Act
To address the critical challenges in the water sector,
Table 3: The Water Institutions and Their New Names under Water Act 2016
Name Under Act 2002
Water Resources Management Authority
Catchment Area Advisory Committees
Water Resource Users Associations
National Water Conservation and Pipeline Corporation
Water Services Regulatory Board
Water Services Boards
Water Services Trust Fund
Water Appeal Board
The initial Water Bill 2014 (the precursor to Water Act
2016) had quite substantial proposals for change of
functions of the above institutions and had provision for
creation of new additional institutions. However, going
through the final Act which is now Water Act 2016, it is
apparent that nothing much has been changed in the
functions of these institutions. It appears that those
who resisted change for whatever reason finally carried
the day! The new Act 2016 has stated that all property,
assets, rights, liabilities, obligations, agreements, any
other arrangements, legal proceedings pending in court
and all personnel of the institutions of the Water Act 2002
shall vest in the respective newly named institutions
upon commencement of the Water Act 2016 which is
now already in operation.
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NAWASCO: Business Plan 2019-2023
the government undertook comprehensive institutional
reforms in the sector. The main water sector reforms
were contained in the Water Act 2002 that aimed at
harmonizing the management of water resources as
well as water supply and sanitation. The Water Act 2002
provided for the separation of key roles in the water
sector all of which had hitherto been undertaken by
the Ministry of Water both in policy formulation and
implementation. Through the reforms brought under
the Water Act 2002, the Ministry is now responsible for
policy, legal framework and development co-ordination
while new institutions were created to undertake
implementation of programmes and projects. The
institutions created under the Water Act 2002 are now in
full operation. However, the re-naming and, to a certain
extent, the re-organization of these institutions has
been configured under a new legislation i.e. the Water
Act 2016. Table 3 shows the institutions and their new
names.
Name Under Act 2016
Water Resources Authority
Basin Water Resources Committees
Water Resource Users Associations
Water Harvesting and Storage Authority
Water Services Regulatory Board
Water Works Development Agencies
Water Sector Trust Fund
Water Tribunal
1.7.6 Other Relevant Legal Reforms
Other laws relevant to the water sector under the
Constitutional reforms and which in one way or the other
affect the water service providers are:
yy County Government Act (No. 17 of 2012)
yy County Governments Public Finance Management
Transition Act (No. 8 of 2013)
yy Division of Revenue Act (No. 31 of 2013)
yy Intergovernmental Relations Act (No. 2 of 2012)
yy National Government Co-ordination Act (No.1 of
2013)
yy Public Finance Management Act (No. 18 of 2012)
yy Transition County Allocation of Revenue Act (No.
6 of 2013)
yy Transition to Devolved Government Act (No. 1 of
NAWASCO: Business Plan 2019-2023
2012)
yy Transition County Appropriation Act (No. 7 of
2013)
yy Urban Areas and Cities Act (No. 13 of 2011)
1.7.7 The Regulatory Framework
Regulation of water resources is a major function of the
Water Resources Authority (WRA). The main tool that
WRA uses to regulate management of water resources
are the water resources rules. The rules provide specifics
and guidelines with regard to the following:
yy Terms and conditions for water allocation to
ensure that water is allocated equitably administrative procedures for the license.
with stakeholder involvement.
yy Requirements for water abstraction to ensure that
downstream users are not disadvantaged.
yy Conditions for maintaining the reserve water for
social needs and environmental sustainability.
yy Guidelines for water use charges and fees as a
way of recognizing economic value for water and
sustaining regulatory activities.
yy Standards for pollution control to ensure that
water resources are not adversely affected.
yy Guidelines for participatory control of pollution
for progressively improving quality of effluent
discharged into water bodies.
yy Thresholds for water allocation depending on
catchment area and river basin.
yy Guidelines for infrastructure development to
increase availability of water resources.
On Groundwater Exploration and Exploitation, Codes of
Practice have been developed by the Ministry of Water
on the following areas:-
yy Code of Practice for Borehole Siting.
yy Code of Practice for Borehole Construction.
yy Code of Practice for Test Pumping of Boreholes.
yy Code of Practice for Supervision of Borehole
Construction.
On water quality and pollution control, WRA has been
working with the various stakeholder groups including
Water Resource Users Associations (WRUAs), Water
Service Providers/Companies, Private Sector, County
Governments, NGOs, Academia and the like to control
pollution. However, pollution control is said to be
expensive and complex.
On water services, the main regulator is the Water
5
Services Regulatory Board (WASREB). WASREB who are
responsible for developing, issuing and enforcing the
following regulations:
yy Water Services License: WASREB issues a license
to a Water Works Development Agency (WWDA),
formerly Water Services Board which is valid for
10 years subject to meeting all conditions and is
renewable. Some of the highlights of the license
are the arrangement between WWDA and WSPs on
delivery of water services; customer management
and tariffs; monitoring, reporting and record
keeping; dispute resolution procedures and
yy License Agreement: WASREB has developed
model license agreements with WSPs. Some of
the highlights of the license are the obligations
and rights for various parties; performance
targets; arrangement on delivery of Water
services; customer management and tariffs;
monitoring, reporting and record k e e p i n g ;
dispute resolution procedures and administrative
procedures for the license.
yy Drinking water quality: The standards of quality of
water supplied for domestic use as well a s
the quality of effluent discharges to receiving water
bodies are set by the Kenya Bureau of Standards
(KEBS). Following these standards, WASREB has
prepared guidelines for drinking water
quality and effluent monitoring procedures. In
addition, the guidelines create awareness among
those charged with responsibilities in water
services (and sanitation/sewerage) on
water quality monitoring requirements to ensure
standards are not compromised; also guidelines
to communicate a process not only to inform
consumers about water quality information but
also to access the information from the Water
Services Providers/Companies.
yy Tariff guidelines. These specify the approach
to setting out tariffs for water services and
the methodologies for reviews, approvals and
adjustments over time. The guidelines also s e t
out the requirements and procedures that WWDAs
WSBs and WSPs must follow for tariff adjustments.
The process of tariff adjustments is undertaken by
WASREB itself.
yy Governance guidelines for cost effective, efficient
and transparent management and operation of
water services. Through the guidelines, WASREB

communicates clearly on the need for good
corporate governance which also satisfies the
requirements of the standards set in the
Companies Act Cap 486 for the WSPs formed
under that Act. Some of the highlights of these
guidelines are roles and functions of the Board
and Sub-Committees of the board, composition
and appointment of the board, compliance
and accountabilities as well as guidelines for
evaluation on performance and impact of the
board.
It should, however, be noted that there have been a
conflict of interest especially between WRA and the
National Environment Management Authority (NEMA)
on who charges and obtains fees against discharging
effluent into river waters. To date, the accepted practice
now is that NEMA charges and prosecutes those who
pollute water and other resources.
1.8 Management Structure
1.8.1 Organizational Structure
The organizational structure of the company is shown in
Chart No. 1.
1.8.2 Staffing levels
The corporate management team is composed of
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NAWASCO: Business Plan 2019-2023
the Managing Director, the Commercial and Finance
Manager (proposed to be split into Commercial and
Finance Managers), the Technical Services Manager, the
Human Resource Manager, the Management Accountant
and the Internal Auditor. Currently, the company has a
total staff of 62 permanent and pensionable and 12 on
3 year performance contracts. Members of the corporate
management team are all on contract terms. Majority
of the permanent staff are inherited from the defunct
Nanyuki Municipal Council. These are unionisable and
their terms are also covered by a Collective Bargaining
Agreement (CBA). Annex 3 exhibits the expected
projections for staffing over the next five years from 2019
to 2023. Annex 2 indicates the list of board members and
management team who were involved in the business
planning process.
1.8.3 Skills Acquisition, Development and Training
In line with modern balanced scorecard practices, the
company is developing a skills acquisition, development
and training policy.
1.8.4 Office/working Space
The company has its fully owned office premises
adequate for its staff at the moment. As the company
grows the premises will be expanded.
 TECHNICAL STRATEGIC COMMITTEE
FINANCE & ADMINISTRATION COMMITTEE BOARD OF DIRECTORS
AUDIT, RISK GOVERNANCE COMMITTEE

MANAGING DIRECTOR

TECHNICAL
MONITORING PUBLIC COMMERCIAL
INTERNAL ICT PROCURE- EXECUTIVE SERVICE HR AND
AND RELATIONS & FINANCIAL
AUDITOR MANAGER MENT SECRETARY MANAGER ADMIN
EVALUATION CUSTOMER MANAGER
NAWASCO: Business Plan 2019-2023

DEPUTY CUSTOMER
ICT
INTERNAL CARE
ASSISTANT
AUDITOR ASSISTANT

QUALITY COMMERCIAL
DISTRIBU- WATER SEWERAGE
PROJECT ASSUR- NRW GIS PRO FINANCE HEAD HR ADMINISTRA- SECURITY

7
TION PRODUC- SUPERIN- DRIVERS
OFFICER ANCE OFFICER OFFICER POOR HEAD OFFICER TION OFFICER GUARDS
HEAD TION HEAD TENDANT
OFFICER ACCOUNTANT

NRW ACCOUNTS ACCOUNTS

TEAM STORES
PAYABLE RECEIVABLE

BILLING METER OFFICE

LINE WATER CHEMICAL
ARTISAN SUPERVISOR READING ATTENDANTS
PATROLLERS OPERATORS ATTENDANTS

PUMP SEWERAGE BILLING METER

DISCONNECTION
ATTENDANTS FOREMAN CLERKS READERS

SEWERAGE
UNBLOCKING EXHAUSTING
OPERATOR

1.9 Achievements
The company has demonstrated some key improvements
to its credit. These are exhibited in Table 4.
Table 4: Achievements Made by the Company to Date
Issue
1 Reduction of Non-Revenue Water (NRW)
2 Collection efficiency
3 Expansion of water network
4 Expansion of sewer network
5 Water treatment and sewerage plants
6 Metering
7 Nanyuki dam
8 Offices
9 Water bottling
10 Geo referencing
11 Water boreholes
12 Overall WASREB Ranking
13 Relationship with the County Government
1.10 Challenges
The company faces a number of challenges which
negatively impact on the company’s business. The
challenges include:
yy Rampant theft of manhole and water chamber
covers.
yy Unreliable water source during the dry period of
January to March and also attributed to climate
change resulting to inadequate water supply
which turns out to be lower than the water
demand in the company’s area of coverage.
yy Dilapidated water pipeline, vandalism of pipes
and illegal connections.
yy Establishment of private boreholes.
NAWASCO plans to mitigate these challenges through
various actions, including:
yy Construction of dam to meet future demand.
Feasibility and design has been carried out. The
company is in the process of sourcing funds for
establishment of the dam.
yy Continued replacement of old pipelines, including
NAWASCO: Business Plan 2019-2023
Progress Made
From 38 % (2018) and plan to reduce it to 25% by year
2023
From 60% to 96%
To new areas i.e. to Likii, Nturukuma, Katheri and Ruai
To Temu, Likii and Batuk
Rehabilitated
Smart meter reading introduced
Done feasibility study and design.
Constructed new offices.
Established water bottling plant.
Done for all water and sanitation infrastructure.
Drilled 2 high yield boreholes to mitigate against
drought conditions.
Improved progressively over the years from N0. 36 in
2008 to No. 6 in 2017.
Goodwill from the Laikipia County Government
replacement of asbestos cement pipes: 60% of
the piping is deemed as old while there are some
50 km of asbestos piping.
yy Expansion of the water distribution network to
areas such as Mukima, Naibor, Umande, Nyariginu
and Matanya.
yy Expansion of sewer network to areas such as Likii,
Shika Adabu, Ruai, and Baraka.
yy Raising funds for the above proposed
infrastructure developments.
1.11 Business Environment
Nanyuki is currently the commercial centre of Laikipia
County. It stands at the foot of the leeward side of Mt
Kenya. It has a unique characteristic of virtually sitting
on the Equator located just six kilometers south of the
town. However, its altitude of 1,947.5 meters gives it a
cooler climate. The town is located 200 km from the
capital city of Nairobi and is well connected to the rest
of the country through an elaborate road network and
an airstrip. Nanyuki town is the last stop of the Indian
constructed and British-colonial rule commissioned
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NAWASCO: Business Plan 2019-2023
railway line which is currently not in operation but there
are plans to rehabilitate and activate it. The county
governments of Muranga, Nyeri and Laikipia are in the
process of planning on how to revive the railway line to
serve the towns of Muranga, Nyeri and Nanyuki and the
surrounding areas.
Nanyuki is the base from which most international
development organization that have projects in
Northern Kenya operate. It is also a transit point for
trucks to and from Northern Kenya. It houses numerous
Government Departments, Parastatal Organizations,
Financial Institutions, and Development Agencies. The
town has about 6,000 businesses most of which are small
scale enterprises. The town serves large scale agricultural
farmers from Nanyuki, Meru, Timau and Isiolo. The
larger area around Nanyuki, remains under farm for
large agricultural production with huge tracts of private
ranches growing major crops such as wheat, potatoes,
flowers and livestock. The town is cosmopolitan and is
the market centre for the farms, ranches, game parks
and wildlife conservancies in the region. Subsistence
farming in subdivided estates is the main occupation
of the surrounding local inhabitants which has resulted
in reduction of ground cover as well as increased
siltation of rivers through poor agricultural practices.
The destruction of the Mount Kenya forest through
9
uncontrolled deforestation has led to the reduction of
water flow in the main rivers that the company sources
water.
The area also serves as a tourist hub. It hosts a number
of reputable hotels and lodges and game reserves
including Mount Kenya Safari Club, Sportsman’s Arms
Hotel and Kongoni Camp Lodge, Sweet Waters Tented
Camp, the Lewa Conservancy, the Sweetwaters Game
Reserve, Samburu National Reserve, Shaba National
Reserve and the Mount Kenya Game Reserve.
Nanyuki also plays host to a number of military bases.
The Kenya Defence Forces, Kenya Airforce Laikipia
Airbase and the British Army Training Unit Kenya (Batuk).
The three military bases have had major influences on
the social scene of the town. This, as well as Kenyans
seeking to develop vacation homes away from Nairobi,
has had the effect of triggering a development boom
in the town. The described economic activities place
a big challenge and responsibility for NAWASCO to
provide enough clean water for domestic, commercial
and livestock consumption. The population served by
the company was estimated at 161,438 as at 2018 and
the population is projected to increase to 191,739 by the
year 2023.
 NAWASCO: Business Plan 2019-2023

2 CURRENT STATUS

2.1 Current Status of Water Services Provider who are expected to rise from 136,286 in 2018/19 to
Capacity 173,939 in 2023/24.
2.1.1 Number of Customers by Type
Table 5 shown below indicates the number of customers

Table 5: Number of Customers by Type

Type Existing Projected
2016/2017 2017/2018 2018/19 2019/20 2020/21 2021/2022 2022/23 2023/24
Residential/
101,979 106,100 110,841 116,383 122,202 128,312 134,728 141,464
Domestic
Commercial 5,511 5,914 6,165 6,473 6,797 7,137 7,494 7,868
Public Board-
12,400 15,600 18,800 19,740 20,727 21,763 22,852 23,994
ing Schools
Standpipes/
450 450 480 504 529 556 583 613
Kiosks
Total
120,340 128,064 136,286 143,100 150,255 157,768 165,656 173,939
customers

2.1.2 Number of Connections 22,631 as at 2018/19 and are projected to increase to

Correspondingly, Table 6 shown below indicates the 35,017 by 2023/24.
number of water and sewer connections which total

Table 6: Number of Connections

Year 2019 2020 2021 2022 2023
Total Water Connections 16,944 18,386 19,828 21,270 22,712
Total Sewer Connections 9,217 9,989 10,761 11,533 12,305
Total connections 26,161 28,375 30,589 32,803 35,017

2.1.3 Financial Performance
Review of 2016, 2017 and 2018 financial statements
indicates that NAWASCO turnover has been on the
upward trend in 2018 compared to 2017. In 2017,
turnover went down by 9% compared to 2016 while
expenditure decreased by 13% the same financial year.
In 2018, turnover increased by 3% compared to 2017.
In 2017, profit increased by 123% compared to a loss in
2016 while in 2018, profit went down by 4% compared
to 2017. The company has been financing its operations
from internally generated funds with some grants
received from WSTF. The company is able to meet it
financial commitments and obligations. Table 7 shows
the Company’s income statement over the last three
years.

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NAWASCO: Business Plan 2019-2023

Table 7: NAWASCO Income Statements in 2016-2018 (KShs)

2016 2017 2018 2022 2023
Turnover 284,568,559 258,060,858 266,723,988 21,270 22,712
Expenses 294,072,222 255,855,294 265,632,800 11,533 12,305
Profit (Deficit) (9,503,463) 2,205,564 1,091,188 32,803 35,017

2.1.4 Creditworthy Rating Assessments Table 8: Existing Distribution Network

Financial and creditworthy indicators are a reflection of Size (mm) Network Distance (Km)
the capacity of an organization to meet its operation DN 400 Water Distribution 4.007
and maintenance expenses and ability to service any
DN 250 Water Distribution 6.682
debt obligations. At the same time, the indicators give
a reflection of efficiencies of revenue collections and DN 225 Water Distribution 7.223
payments. In addition it gives indicative measures of DN 200 Water Distribution 5.837
management quality and capacity as well as maintenance DN 160 Water Distribution 19.363
quality and efficiency. NAWASCO has a credit worthiness DN 150 Water Distribution 4.578
ranking of BBB and aims to improve credit worthiness
DN 110 Water Distribution 26.613
ranking to AA status by 2023.
DN 90 Water Distribution 30.529
2.1.5 Technical DN 63 Water Distribution 44.270
i) Water Facilities DN 50 Water Distribution 43.205
NAWASCO has a full treatment water supply infrastructure DN 40 Water Distribution 50.863
with a capacity of 14,650 m3/day but operating at DN 32 Water Distribution 57.147
12,000m3/day. Apart from pumping to a handful of
DN 25 Water Distribution 99.087
customers upstream of the water treatment works,
the facility is in general a gravity system. Water storage DN 20 Water Distribution 34.619
capacity is approximately 8,500m3 which is about 70% Total 434.023
of daily water demand. The facility has approximately
14,026 active connections. The water supply facilities are iii) Future Expansion of the Water Network
outlined here below: The envisaged future distribution of the water network
is that the company plans to expand the water works by
yy Intake- consisting of two weirs i.e. for the old and an additional 40 km and establish 5,957 connections. The
new system company has plans to establish 4 additional boreholes
yy Old system- complete treatment facility with a during the planned period.
capacity of 10,000 gallons (37.9m3) per hour.
yy New system- complete treatment facility with a iv) Existing Sewerage Facilities
capacity of 110 L/S The town is served by a conventional biological waste
yy Storage- a total of 7 tanks with a total capacity of water treatment ponds (lagoons) facility, capable of
approximately 8,500m3 treating approximately 2,650 m3/day. The waste water
facility has approx. 56.3 km of sewer lines network. There
ii) Existing Water Distribution Network are approx. 8,605 sewerage connections serving an
The existing water distribution network is shown in approximated 40% of the population while the rest of
Table 8. the population is served through on-site sanitation (pit
latrines and septic tanks.). The detail of the sewerage
system is shown in Table 9.

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 NAWASCO: Business Plan 2019-2023

Table 9: Existing Sewerage System 2.1.6 Customer Satisfaction

Size (mm) Network Distance (m) The company conducts a customer satisfaction survey
DN 160 Sewer 401.0346 every two years. The Customer satisfaction survey
conducted in October 2018 revealed that 71% of the
DN 100 Sewer 200.7537
customers were satisfied with the company’s services.
DN 1000 Sewer 40.28198
DN 150 Sewer 98.28451 2.1.7 Legal
DN 160 Sewer 18.489 NAWASCO strives to meet its legal and tax compliance
DN 200 Sewer 17.513 requirements. The Company is compliant in respect to
the Companies Act, tax returns, labour laws, contributory
DN 225 Sewer 5.233
schemes such as NHIF cover, NSSF and environmental
DN 250 Sewer 945.46 laws. It has also been meeting its levy obligations
DN 300 Sewer 2.988 with regard to WASREB, WRA and the Northern Water
DN 375 Sewer 748.818 Development Agency.
DN 40 Sewer 115.62
DN 400 Sewer 4,356 2.2 Current Status of Water Services Area
2.2.1 Number of Connections
DN 600 Sewer 4,519
There are currently 14,026 active water connections,
Total 56.3 Km a population of 2,100 households use 14 kiosks and
732 are non-domestic connections and 8,605 sewer
v) Future Expansion of the Sewer System connections.
The sewer system is expected to expand during the
planned period by 10 km of assorted sizes of sewer 2.2.2 Level of Service
pipelines. NAWASCO is categorized as a large WSP (10,000-34,999
connections). According to WASREB Impact Report
vi) Operations & Maintenance Issue No.10, the utility was ranked position 2 under this
The company plans to develop new polices and surveys category and position 6 overall out of 88 WSPs. Table 10
and capacity building for the staff as shown in the below highlights service levels, key achievements and
implementation plan in this report. performance.

Table 10: Current Service Levels

Indicator WASREB score Impact Remarks
Report 2016/2017
1 Drinking Water Quality (DWQ) 93% Acceptable
2 Non-Revenue Water (%) 38% Non-acceptable
3 Water Coverage (%) 87% Acceptable
4 Hours of Supply (hrs./d) 23 Good
5 Staff Productivity (no. staff/1000 6 Acceptable
connections.)
6 Personnel expenditures as % of total 47% Non-acceptable
O+M costs
7 Revenue Collection Efficiency (%) 108% Good
8 O+M Cost Coverage (%) 125% Acceptable
9 Metering Ratio (%) 94% Non-acceptable
10 Geo referencing Done for all water and
sanitation infrastructure.

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NAWASCO: Business Plan 2019-2023
2.2.3 Access to Water Supply and Sanitation
On average, access to safe water within NAWASCO’s
area of jurisdiction is estimated at 83% which is a good
achievement compared with a NWSS (2015) target
of 80%. However, the target for Vision 2030 is 100%
coverage. On the other hand, the average safe sanitation
coverage within NAWASCO’s region is estimated at
100%. Out of this, sewerage coverage is estimated at
20% within the urban area, which is much lower than
a NWSS (2015) target of 77.5%. However the target for
Vision 2030 is 100% coverage.
2.2.4 Water Resources (Abstraction and Discharges)
The main source of water for Nanyuki town is Likii B River
which emanates from Mt. Kenya forest. In general, the
area experiences “long rains” between March to May and
the “short rains” between October to November. Average
annual amounts of rainfall are about 600-900 mm. The
annual mean temperature is 210C while mean monthly
temperature is 200C. Currently; water abstraction from
Likii B River is approx. 12,000 m3/day while the water
treatment capacity is approx. 14,000 m3/day. There are
challenges with water resources within the supply areas,
which arise from climate change and human activity
impacts. These include:
i. Catchment degradation resulting in soil erosions
and flush floods;
ii. Decline on base river flows of Likii B River, other
13
rivers and streams flowing from Mt. Kenya forest;
iii. Prolonged droughts;
iv. Increased water use and abstraction from rivers
for different socio and economic use and in
particular agricultural productivity;
v. Water use conflicts.
2.2.5 Identified Priorities
The company’s priorities are aligned with the strategic
objectives presented in Section 3.1.
2.3 Current Status of Water Services
Infrastructure
2.3.1 Existing Capacity versus Water Demand
The amount of water designed to be abstracted by
NAWASCO from Likii B river is approximately14,000 m3/
day. However, due to frequent drought and change
in weather patterns that have reduced the amount of
rainfall in the area which in turn has affected the flow
of water into river Likii, the treatment works is only able
to produce 13,053 m3/day which is not enough to meet
the daily demand of 16,474 m3/day. It is envisaged that,
this gap will be addressed by proposed construction of
a new dam along the river. The Water demand for the
supply area to meet Vision 2030 development objectives
is presented in Table 11.
 NAWASCO: Business Plan 2019-2023

Table 11: Water demand projection analysis

Demand Project in m3/year
Demand 2018 2019 2020 2021 2022 2023
Categories
Domestic 4,673,825 4,837,418 5,006,742 5,181,978 5,363,347 5,551,066
Kiosks 3,360 3,696 4,065.6 4,472.16 4,919.376 5,411.3136
Commercial/
1,193,900.4 1,235,598 1,278,828.6 1,323,592.2 1,,369,888.8 1418,025
public entities
Schools 57,459 63,204.9 69,525.39 76,477.929 84,125.7219 92,538.29409
Total 5,930,562 6,141,936 6,361,181 6,588,541 6,824,302 7,069,064
monthly
cumulative
494,214 511,828 530,098 549,045 568,692 589,089
demand (m3/
month)
daily demand
16,474 17,061 17,670 18,302 18,956 19,636
m3/d
Adjusting
upward by 38%,
35%, 32%,29%,
22,734 23,032 23,324 23,609 24,075 24,545
27% 25%) ( for
firefighting,
losses) (m3/day)
Source: Atkins Feasibility study for the proposed water sector PPP projects in Muranga and Laikipia Counties. - Projection
has been revised since the report captured current supply conditions

2.4 Management Information system 2.4 PESTEL AND SWOT ANALYSIS

The WSP is in the process of acquiring an Integrated
Management Information System which will help to
strengthen the business processes.
2.5 Tariffs
The WSP has applied for approval of their proposed tariff
structure. This is likely to impact on the future financial
projections.
2.4.1 PESTEL Analysis
A PESTEL (Political, Economic, Socio-Cultural,
Technological, Environmental and Legal) analysis is
a framework or tool used to analyse and monitor the
macro-environmental factors that have an impact on
an organisation, the result of which is used to identify
threats and weaknesses which is used in a SWOT analysis.
A PESTEL analysis for NAWASCO is shown in Table 12.

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NAWASCO: Business Plan 2019-2023

Table 12: The PESTEL Analysis

Category Issues Implications Opportunity Threat
Political Good political County government • The company may
goodwill with the have the desire to make adopt influential
county government infrastructure investment tactics for resource
and operates at arm’s allocation
length from the utility
Prolonged consensus Time taken to make • It results to delayed
among stakeholders decision at National decision making
on development of and county level affect thus delaying
large infrastructure. services delivery development
Budget appropriation May result in under- • The company is • One government
and resource funding, however, the able to receive may give minimal
allocation at the county govt has the resources from funds to the
county level/ national primary responsibility for different sources company with
government. investment thus increasing to the assumption
its pool of funds that the other
government has
contributed more.
Advanced awareness Declaration of “free water • It can make the • The right can
on water rights and for all”might affect the company more be abused by
political agitation commercial viability of aware hence politicians to
for better service the utility develop a strategy advance their
delivery. to meet the needs. political mileage
Clustering of water This has the potential to • Easy in monitoring • None-commercially
service providers in streamline the operation of services delivery viable utility
the county of water utility • Ease in accessing might pull-down
commercial commercial viable
financing by utility
utilities economies
of scale
Economic • New country’s Reduced chances for • Ability for • Limited sources of
economic status grants but preference of customers to pay funds in respect to
– Middle income commercial lending for water and donor grants
economy sanitation services
Poverty Increase in the Urban • Effect on
poverty leads to the willingness and
demand for the company ability to pay
to develop pro-poor
initiatives.
• Major consumers Overreliance on few • Revenue collection • In case they
major consumers is easy withdraw from
• High efficiency the service
supply it would
impact company
operations
• Demand for the Increased demand • Increased revenue • Resources strain
services for portable water, • Improved quality
sanitation and sewerage of services
services.

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 NAWASCO: Business Plan 2019-2023

Category Issues Implications Opportunity Threat

• Tariff Approval and successful • Increased revenue
implementation implementation
(Inflation)
• Government levies Imposed government • High compliance
levies/taxes costs

Social • Urbanization • The urbanization • Increased market • Creates a lot of

• Town Planning- trend -high opportunity pressure on the
Land use disposable income existing water
• Increase in urban- and sewerage
poor population infrastructure
leading to informal
settlements thereby
causing great
sanitation challenges
– pollution of the
water intake by the
slums upstream.
• Vandalism • Increased incidences • High cost of
of vandalism of maintenance
the company’s
infrastructural
assets(manhole
covers),illegal
connections,
destructions
• Poverty • Effect on willingness • Unwilling to pay
and ability to pay for water.
• Increased water
theft

• Ethnic diversity • The Nanyuki is a • Diversification of

cosmopolitan town human resources
• High literacy level • The level of • Understand
education of the company
populace operations and
support it easily
• Enhanced loyalty

Technological • Technological • The quick • Improved service • Increased costs of

advancement technological delivery replacement and
advancement • Improved decision maintenance
demands that the making
company keeps up • Improved revenue
with the pace collection

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NAWASCO: Business Plan 2019-2023

Category Issues Implications Opportunity Threat

Environment • Environmental • Kenya is rated as Adaptation of smart/ • Depleted fresh
degradation a water scarce green technology water resources;
• Ground Water country and • Deforestation and
harvesting this is further desertification;
• Solar panels exacerbated by • Water pollution
the fact that the
water resource is
dwindling while
on the other hand
the population is
growing.
Natural disasters and • These may include; • Infrastructure
topography floods, drought, degradation/
landslides, damage
Prolonged rains • Due to water • Low water sales
harvesting. low • High pressure
consumption hence high
leakages
Legal • Many legislations • Constitutional • Company legal • Legal battles/
function being interpretation in safety disputes
devolved to the line with statutes
counties and bills
• Sector laws and • Evolving sector • Enhanced • Contradictions
regulations guidelines/laws company
and regulations governance
• Legal disputes • Unsatisfied • Affect company
stakeholders may image and
choose to take the operations
company to court

2.4.2 SWOT Analysis success of the work of the company. Failure to consider
The purpose of a Strengths, Weaknesses, Opportunities, a key strength, weakness, threat or opportunity could
and Threats framework is to get managers thinking lead to poor business decisions. The SWOT analysis for
about everything that could potentially impact the NAWASCO is shown in Table 13.

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 NAWASCO: Business Plan 2019-2023

Table 13: The SWOT Analysis

STRENGTH
˜˜ Qualified, experienced and adaptive staff;
˜˜ Team cohesiveness;
˜˜ Good working environment;
˜˜ Well established water delivery systems;
˜˜ Credible and reliable data information provider on
water services;
˜˜ Customer loyalty
˜˜ All-inclusive stakeholder’s representation, and;
˜˜ Provision of good quality water.
WEAKNESS
˜˜ Good ground and surface water quality;
˜˜ Good geographical position (location &
topography);
˜˜ Cross-county water services delivery;
˜˜ Burgeoning urban population hence increased
water services demand;
˜˜ Presence of large consumers;
˜˜ Political goodwill from county government;
˜˜ Existing legal framework and development path;
˜˜ Availability of different funding objectives;
˜˜ High level of stakeholder awareness;
˜˜ Retention and acquisition of development partners;
˜˜ Monopoly in service delivery, and;
˜˜ Availability of raw quality water.

OPPORTUNITIES THREATS
˜˜ Inadequate documentation of processes and ˜˜ Development of alternative water sources by large
policies; consumers;
˜˜ Limited internal resources for expansion; ˜˜ Climate change;
˜˜ Aging infrastructure; ˜˜ Conflicting legislation and policy framework;
˜˜ Operational inefficiency; ˜˜ Degradation and encroachment of water catchment
˜˜ Complacency. areas;
˜˜ Damage of infrastructure/water storage areas;
˜˜ Poor urban planning;
˜˜ High default rate;
˜˜ Reliance on few large consumers;
˜˜ Change in priorities of county/national government;
˜˜ Under-investment of county/national .

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NAWASCO: Business Plan 2019-2023

3 STRATEGIC PLAN

3.1 Strategic Objectives
As observed earlier, this Business Plan will align with the
new Strategic Plan which NAWASCO has prepared for
2019-2023. The Strategic Plan has identified, through
the use of the balanced scorecard framework, key
strategic objectives that will drive the implementation
of the Strategic Plan over the five year period in the four
perspective areas under the balanced scorecard, namely,
financial perspective, customer satisfaction, internal
operations or processes and learning, growth and skills
development. The strategic objectives are revealed in
Table 14.

Area of Concern Objective Results by 2023

1. Financial Perspective Increase access to clean and safe
drinking water and sanitation
services
Grow financial and commercial
position and viability
˜˜ Increase water coverage from 92% to 97%
coverage
˜˜ Increase sewerage coverage in underserved
areas to 45% coverage by 2023.
˜˜ Reduce NRW from 33%to 25%
˜˜ Increase O&M cost recovery from 125% to
150%
˜˜ Improve utility creditworthiness ranking to
AA
˜˜ Improve operation efficiency
˜˜ Widen revenue streams

2. Customer Satisfaction Provide timely, quality and
reliable services. Also comply with
WASREB requirement for customer
satisfaction survey every 2 years
˜˜ Compliance with residual chlorine
˜˜ Maintain drinking water quality at 100%
˜˜ Constantly measure consumer satisfaction
index
˜˜ Increase hours of supply to 24hrs

3. Strengthening Internal Strengthen organizational structures ˜˜ Develop workplace policies and standard
Processes and operational processes. operations manuals.
˜˜ Asset development
˜˜ pursue ISO certification and accreditations
˜˜ Improve work environment safety and
health
˜˜ Digitization of Human Resource processes
˜˜ Improve on regulatory compliance
˜˜ Adopt continuous improvement practices
4. Company Growth and Strengthen people and communica- ˜˜ Embark on continuous training and skills
Skills Development tion systems development
˜˜ Establish performance management
systems.
˜˜ Develop and implement a communication
policy.
˜˜ Foster innovation
˜˜ Attract and retain talent
˜˜ Increase employee satisfaction level

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 NAWASCO: Business Plan 2019-2023

3.2 Performance Improvement with sector requirement, NAWASCO will use the sector
The improvement standards have been set out in the benchmark indicators used for performance assessment.
service provision agreement. NAWASCO will endeavour Table 15 presents performance indicators and benchmark
to continuously improve its performance. To be in line that NAWASCO will use to assess its performance.

Table 15: Performance Indicators and Benchmarks

Measures Baseline Target
(2018)
2019 2020 2021 2022 2023
% increase in water 92% 93% 94% 95% 96% 97%
access
% increase in sewerage 35% 36% 39% 42% 44% 45%
access
% increase in net profit/ 25% 30% 35% 40% 45% 50%
surplus
Billing on actual 74% 83% 92% 100% 100% 100%
% increase in collection 91% 93% 95% 97% 99% 100%
efficiency
O&M cost recovery 125% 130% 135% 140% 145% 150%
% increase in metering 94% 95% 96% 97% 100% 100%
ratio
Staff per 1000 6 5 4 4 4 4
connections
Improve credit BBB BBB A A AA AA
worthiness ranking
% reduction in NRW 38% 35% 33% 30% 27% 25%
Increase in hours of 23 23 23 24 24 24
supply
% customer satisfaction 60% 70% 80% 85% 90% 95%
index
Drinking water quality 95% 96% 97% 98% 100% 100%
Compliance with residual 97% 97% 99% 98% 99% 100%
chlorine
ISO certification 0 Establish Establish Conduct ISO Apply ISO Attain ISO
ISO procedures readiness certification certification
committee and policies test
and conduct for ISO
pre-ISO test
and develop
staff
capacity
Number of accreditation 0 0 0 1 1 2
Number of policies 3 5 7 9 12 15
developed

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NAWASCO: Business Plan 2019-2023

Measures Baseline Target

(2018)
2019 2020 2021 2022 2023
Continuous improvement Establish Measure Continuous Implement Evaluate the Ongoing
committee success of CI monitoring CI on all effectiveness
on CI of CI departments of CI

Regulatory compliance 90% 95% 99% 100% 100% 100%

Employee development Employee 10 Staff 20 Staff All staff All staff
plan development trained trained trained trained
plan
developed
Performance Performance 2 appraisal 2 appraisal 2 appraisal Impact of 2 appraisal
Management plan appraisal (Mid and (Mid and (Mid and appraisal (Mid and
system end of year) end of year) end of year) system end of year)
instituted and evaluated
Attract and retain talent On- going 1 Policy Reward Continuously Continuous Conduct
on staff system improve the impact
retention implemented retention assessment
developed policy on staff
retention
policy
Automation of key Plan for HRIS HR dash Fully Access the
processes board automate all impact
finalized operations of the
and develop process of
capacity of automation
staff
Foster innovation On-going Establish 2 Integrate On-going Assess the
R&D and Innovations R&D in all impact
innovation developed departments of R&D &
hub by the hub innovation
hub

21

3.3 Revenue Improvement Strategy
Financial sustainability for any business is dependent
upon among other measures the business ability
to generate sufficient revenues to meet its financial
obligations. NAWASCO is no exceptional and therefore
for the company to realize its goal of attaining financial
sustainability the company will employ the strategies
outlined below.
3.3.1Public Education Programme
Public education and awareness programmes will be put
in place to sensitize the public on the following:
yy Obligation to pay bills
yy Need to report or legalize illegal connections.
yy Need to avoid water wastage- repair leaking taps,
using right taps etc.
yy Need to report burst pipes
3.3.2 Improvement in Customer Service
Customer service means providing quality product or
service that satisfies the needs/wants of a customer and
keeps them coming back. Good customer service means
much more – it means continued success, increased
profits, higher job satisfaction, improved company or
organization morale, better teamwork, and market
expansion of services/products. In order for NAWASCO
to improve its customer service delivery, it should take
care of customer needs by:
yy Providing quality service
yy Providing adequate service
yy Providing timely relevant information e.g.
increased tariffs
yy Timely disconnections and reconnections
yy Introduction of newsletters
3.3.3 Customer Service Training Programme
NAWASCO customer service goal should be to exceed
clients’ expectations and provide value-added service.
This can only be achieved through focused training of
staff who directly relate with customers on a day to day
basis. The customer service training will focus on the
following areas:
yy Customer complaint handling mechanisms
yy Communication techniques
yy Customer feedback mechanism
yy Customer complaints solving
22
NAWASCO: Business Plan 2019-2023
3.3.4 Revenue Management
Revenue management will be one of the strategies
that NAWASCO will employ in order to attain financial
sustainability. The revenue management strategies that
will be employed by the Company are outlined here
below:
i) Technical
The technical strategies to be used include:
˜˜ Quick response to bursts and leaks
˜˜ Servicing and replacing faulty meters
˜˜ Increase zonal/district meters
˜˜ Increase line patrols
˜˜ Introduce leak detectors
ii) Commercial
The commercial strategies to be used include:
˜˜ Publicize MPESA and SMS services for bill enquiry
˜˜ Improve accuracy in meter reading and billing
˜˜ Improve debt collection by engaging top consumers
and generally develop debt policy
˜˜ Constantly monitoring meters of large consumers
˜˜ Develop additional revenue streams
3.3.5 Meter Reading
NAWASCO will put in place measures and procedures
necessary for the improvement of meter reading. These
procedures will ensure timely and accurate meter
reading. Other measures that will be taken include:
yy Fully migrating to mobile meter reading and AMR
and AMI
yy 100% working meters.
yy Proper supervision of meter reading.
yy Rotation of meter readers.
3.4 Pro Poor Strategies
The Kenya Pro Poor Water Policy for Water Services
Strategy (WSS) is oriented towards the achievement of
the SDG and the fulfillment of the criteria outlined by the
human rights to water approach. It focuses not only on
the establishment of infrastructure (e.g. networks, onsite
sanitation etc.) but also on the concepts of managing
such infrastructure and on its anchorage into the sector
institution framework (e.g. formal service providers,
WWDAs ) in order to ensure that all Kenyans have access
to services fulfilling minimum standards and in a suitable
way. Each statutory body has a role to play towards
achievement of this agenda. In particular the Water
Service Providers are mandated to take the following
NAWASCO: Business Plan 2019-2023

actions: sales to one client to 200lt/day for instance).

yy Establish under/unserved areas within the
services areas and its surroundings.
yy Nominate a focal person or establish a structure
to be responsible for enlarging and maintaining
service provision to the poor in under/unserved
areas.
yy Establish proposal projects to be financed by the
WSTF in the urban areas.
yy Collect complains from the under/unserved areas
(integration in the compliant system)
yy Identify public areas for sanitation installation
such as market places, bus terminals, etc. and
prepare project proposals for the WSTF.
yy Carry out water testing according to water testing
guidelines and make result public.
yy Implement a pro poor tariff system which also
ensures that water sales (subsidized tariffs for
the poor) at the kiosks are not used by informal
providers to make profit (limit subsidized water
yy Ensure gender balance in management of water
kiosks and use of technologies.
yy Use water points (kiosks) as a focal point for
sensitization on cross cutting issues.
yy Ensure rationing of water supply does not
discriminate the poor
yy Implement a metering program to ensure in 100%
metering.
3.5 Risks and Mitigating Measures
NAWASCO faces risks which are both internal and
external. While there is nothing the Company can do to
prevent the external risks, it can avoid or reduce internal
risks. However, in both cases, NAWASCO should identify
both risks and develop mitigating measures to minimize
the impact of these risks. This has been done and Table
16 provides details of risks facing NAWASCO and the
mitigating measures that will be put in place to reduce
the impact of these risks.

Table 16: Risks and Mitigating Measures for the Strategic Objectives
Strategic objective
Increase access to clean and
safe drinking water and
sanitation services
Grow financial and commercial
position and viability
Risk description
Intended water and sewerage
coverage may not be achieved due to
limited infrastructure development
Access to water may be hampered by
the changing weather pattern in the
area.
Access to sewerage coverage may be
slowed due to capital intensive nature
of developing conventional sewer
system
Operational inefficiencies may derail
company’s ambition of attain financial
viability
Reliance on single source of revenue
may inhibit service delivery
Mitigation strategy
Closely engage WWDB and County
government to undertake their
mandated role.
Explore all funding mechanism i.e.
commercial financing to undertake
minimal infrastructure development.
Engage in catchment protection
exercise with conversation entities
Innovate on alternative mechanism
for increasing access to sewer
services.
Incorporate technologies in the
management of company’s operation
and build the competencies of the
staff
Strive to reduce water losses by
making appropriate investment in
NRW and adopt best practice and
procedure of managing NRW

Explore mixed-financing approach

for the operations of the company i.e.
commercial, blended-financing and
bond-financing

23

Strategic objective
Provide timely, quality and
reliable services.
Strengthen organizational
structures and operational
processes
Strengthen people and
communication systems
Risk description
Customers might opt not to pay for
water services either as directed
by County government or due to
financial difficulties
Our Product and services might not
satisfy our customer leading to non-
payment for water bills
Resistance to change process at BOD,
management and lower level may
hamper effective transformation of
the company
Employee dissatisfaction may
hamper effective services delivery to
consumers.
Loss of talented staff may derail
development and roll-out of
innovation in service delivery.
Limited skills on the use of new
technologies, application and
equipment may delay adoption of the
same
24
NAWASCO: Business Plan 2019-2023
Mitigation strategy
Proactively engage with customers
through open day clinics.
Educate the county leadership on
water services provision
Conduct annual customer satisfaction
surveys
Undertake periodic monitoring
of services and product and
ensure it adhere to regulatory and
international standards
Undertake change management
training for all staffs and BoD
Develop workplace policies that are
flexible and friendly to the staff
Institute the culture of continuous
improvement in all departments and
promote healthy competition
Develop robust performance
management systems that reward
and celebrate good performance
Conduct period staff satisfaction
survey and undertake remedial
measure as informed by the survey
Develop framework for staff
development and retention. This
is closely linked with performance
management system
NAWASCO: Business Plan 2019-2023

4 FINANCIAL PLAN

4.1 Future Capital Requirements implementation plan. The CAPEX will be financed
NAWASCO will require KSh 1,495,490,000 to implement through a mix of different sources: Transfers, Tariff, Taxes
its capital expenditure over the five year business and Repayable Finance.
plan period as shown in table 17 below in CAPEX

Table 17: Implementation plan CAPEX Budget

Asset type 2019/20 2020/21 2021/22 2022/23 2023/24 Total Source of Funds
Ksh Ksh Ksh Ksh
ICT 15,200,000 6,800,000 12,800,000 2,800,000 2,800,000 40,400,000 Tariff, Taxes,
Transfers,
Property, Plant & 119,658,000 405,858,000 343,358,000 364,558,000 131,858,000 1,365,290,000 Tariff, Taxes,
Equipment Transfers,
Repayable Finance

Motor Vehicles 200,000 13,400,000 8,200,000 200,000 200,000 22,200,000 Tariff

Policy Development 17,250,000 13,150,000 13,500,000 10,700,000 13,000,000 67,600,000 Tariff
Total 152,308,000 439,208,000 377,858,000 378,258,000 147,858,000 1,495,490,000

4.2 Grants
A detailed implementation plan is included in annex 4 of
this business plan.

Table 18: Grants

Details 2019/20 2020/21 2021/22 2022/23 2023/24 Totals
Ksh Ksh Ksh Ksh Ksh Ksh
Grants receivable 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 50,000,000
from WSTF
Grants receivable 91,200,000 91,200,000 91,200,000 273,600,000
from World Bank
Total 10,000,000 10,000,000 101,200,000 101,200,000 101,200,000 323,600,000

4.3 Principal Financial Assumptions

The financial projections have been prepared covering
the years 2019-2023. The principal financial assumptions
on which the financial projections have been made are
set out in table 19 described in the next page.

25
 NAWASCO: Business Plan 2019-2023

4.4 Balance Sheet

Table 19: Assumptions

Assumptions 2019/20 2020/21 2021/22 2022/23 2023/24
Item Description
Population growth 3.50% 3.50% 3.50% 3.50% 3.50%
Kenya inflation 6.50% 6.50% 6.50% 6.50% 6.50%
Number of bore holes drilled 1 1 1 1 1
Total water produced per annum 4,197,200.55 4,229,189.01 4,273,444.09 4,398,600.66 4,433,789.47
NRW 35.00% 32.00% 30.00% 27% 25%
Available water for sale (m3/p.a) 2,728,180 2,875,849 2,991,411 3,166,992 3,325,342
Available water for sale (m3/day) 7,474 7,879 8,196 8,677 9,111
Water demand (m3/day) 17,952 18,580 19,231 19,904 20,600
Water demand (m3/ p.a) 6,552,280 6,81,817 7,019,180 7,264,852 7,519,122
Average Tariff Ksh. Per (m/3) 92 85 87 86 86
Collection Efficiency (%) 92% 93% 95% 97% 97%
O&M coverage 142% 132% 133% 131% 132%
Employee Costs/Total OPEX 58.15% 60% 60% 60% 61%
Total Connections 16,944 18,386 19,828 21,270 22,712
No. of water connections 9,217 9,989 10,761 11,533 12,305
No. of sewer connections 26,161 28,375 30,589 32,803 35,017
Staff establishment 79 79 79 79 79
STaff per 1000 connection 5 4 4 4 3
Provision of bad debts p.a 16.50% 16.50% 16.50% 16.50% 16.50%
Depreciation rates p.a
Land 2.00% 2.00% 2.00% 2.00% 2.00%
Building and Civil works 2.00% 2.00% 2.00% 2.00% 2.00%
Plant and machinery 12.50% 12.50% 12.50% 12.50% 12.50%
Electrical Equipment and Installation 10.00% 10.00% 10.00% 10.00% 10.00%
Water meters 20.00% 20.00% 20.00% 20.00% 20.00%
Erection and Installation 10.00% 10.00% 10.00% 10.00% 10.00%
Consultancy fees 20.00% 20.00% 20.00% 20.00% 20.00%
Computer equipment 33.33% 33.33% 33.33% 33.33% 33.33%
Furniture Fixture and office equipment 12.50% 12.50% 12.50% 12.50% 12.50%
Vehicles and trucks 25.00% 25.00% 25.00% 25.00% 25.00%
All assets fully depreciated are assumed
to be written off at nil residual value
WRMA Abstraction Ksh 0.5 m3 Ksh 0.5 m3 Ksh 0.5 m3 Ksh 0.5 m3 Ksh 0.5 m3
WASREB Levy 4.00% 4.00% 4.00% 4.00% 4.00%
Increase in sewer access 20.00% 20.00% 20.00% 20.00% 20.00%

26
NAWASCO: Business Plan 2019-2023

Table 20: Income Statement

2019/20 2020/21 2021/22 2022/23 2023/24
Ksh Ksh Ksh Ksh Ksh
REVENUE
Total Revenue 392,059,254 379,952,094 411,375,944 430,451,469 451,974,043
EXPENDITURE
Personnel 153,827,004 164,845,664 176,719,806 189,516,528 199,803,681
Operations 59,727,162 60,336,023 63,196,181 65,879,613 68,585,754
Supplies & services 23,025,467 23,713,113 25,142,750 26,477,033 27,360,410
Premises maintenance 13,171,373 12,397,591 14,161,249 14,919,246 15,224,470
Motor vehicle running expenses 9,556,335 9,338,358 10,277,705 10,929,048 11,475,501
Board expenses 5,241,823 5,582,542 5,945,407 6,331,858 6,743,429
TOTAL OPERATING G & OTHER COSTS 264,549,164 276,213,291 295,443,097 314,053,327 329,193,245
EARNINGS BEFORE INTEREST & TAX DEP 127,510,100 103,738,803 115,932,847 116,98,142 122,780,798
& AMORTIZATION
Depreciation 50,654,468 57,100,803 58,628,535 50,301,042 42,497,233
EARNINGS BEFORE INTEREST & TAX 76,855,632 46,638,000 57,304,312 66,097,101 80,283,565
Finance costs 0 40,982,500 40,982,500 38,577,692 36,357,870
EARNINGS AFTER INTERESTS BEFORE 76,855,632 5,655,500 16,321,812 27,519,408 43,925,695
TAX
Tax @30% 23,056,690 1,696,650 4,896,544 8,255,822 13,177,709
EARNINGS AFTER INTERESTS & TAX 53,798,942 3,958,850 11,425,268 19,263,586 30,747,987

Table 21: Cash Flow Statement

2019/20 2020/21 2021/22 2022/23 2023/24
Ksh Ksh Ksh Ksh Ksh
Net cash from operating activities 41,181,775 72,947,964 84,856,937 85,808,443 80,142,257
Net cash used in investing activities (32,650,000) (33,350,000) (34,500,000) (13,7000,000) (16,000,000)
Net cash flow from operating 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
activities
Ne increase in cash and cash 18,531,775 49,597,964 60,356,937 82,108,443 74,142,257
equivalents
Movement in cash and cash
equivalents
At start of year 15,882,210 34,413,985 84,011,949 144,368,886 226,477,328
Increase/(Decrease) in the year 18,531,775 49,597,964 60,356,937 82,108,443 74,142,257
At end of year 34,4133,985 84,011,949 144,368,886 226,477,28 300,619,586

27
 NAWASCO: Business Plan 2019-2023

4.5 Ratios

Table 22: Balance Sheet

2019/20 2020/21 2021/22 2022/23 2023/24
Ksh Ksh Ksh Ksh Ksh
Shareholders’ funds 411,512,645 425,471,496 446,896,764 476,160,350 516,908,336
Long term borrowings 3,842,619 3,842,619 3,842,619 3,842,619 3,842,619
Total equity and non-current 415,355,264 429,314,115 450,739,383 480,002,969 520,50,955
liabilities

Represented by:

Total non-current assets 242,997,007 259,607,007 268,393,007 258,281,007 252,639,007

Total current assets 286,292,861 291,081,493 313,022,889 361,496,907 415,844,400
total current liabilities (113,934,604) (121,374,385) (130,676,513) (139,774,945) (147,732,452)
Net assets/(liabilities) 415,355,264 429,314,115 450,739,383 480,002,969 520,750,955

Table 23: Ratios

2019/20 2020/21 2021/22 2022/23 2023/24
Liquidity
Current Ratio 2.5 2.4 2.4 2.6 2.8
Quick Ratio 0.3 0.7 1.1 1.6 2.0
Safety
Debt to Equity Ratio 0.0 0.0 0.0 0.0 0.0
Debt to Coverage Ratio - 10.67 10.67 10.04 9.46
Profitability
Sales Growth 47.0% -3.1% 8.3% 4.6% 5.0%
Gross Profit Margin 32.5% 27.3% 28.2% 27.0% 527.2%
Net Profit (loss) Margin 19.6% 1.5% 4.0% 6.4% 9.7%
Efficiency
Days in Receivables 227.7 191.6 142.4 107.2 85.8
Accounts Receivable Turnover 1.6 1.9 2.6 3.4 4.3
Days in inventory 6.7 7.3 7.2 7.3 7.3
Sales to Total Assets 0.6 0.5 0.5 0.5 0.5
Collection Efficiency 92% 93% 95% 97% 97%
O&M coverage 142% 132% 133% 131% 132%
Staff costs as % of revenue 0% 39% 43% 43% 44%
Board costs as a % of O&M 0% 2% 2% 2% 2%
Staff costs as a % of O&M 50% 58% 60% 60% 60%

28
NAWASCO: Business Plan 2019-2023

4.6 Sensitivity Analysis

The sensitivity scenario assumes that the company will be asset holders of the plant, property and equipment’s and
will therefore charge deprecation of the immovable assets in its income and loss statement. The earnings after interest
before taxation turns into a loss position throughout the four year business planning period.

Table 24. Sensitivity Analysis Scenario: Charge deprecation of the immovable asset
Income Statement 2019/20 2020/21 2021/22 2022/23 2023/24
Ksh Ksh Ksh Ksh Ksh
REVENUE
Total Revenue 392,059,264 379,952,094 411,375,944 430,451,469 451,974,043
EXPENDITURE
Personnel 153,827,004 164,845,664 176,719,806 189,516,528 199,803,681
Operations 62,210,667 63,324,112 66,764,953 70,074,481 63,461,412
Supplies & services 23,198,262 27,632,695 31,815,698 35,538,732 37,278,742
Premises maintenance 13,171,373 13,094,073 15,567,883 16,772,482 16,960,259
Motor vehicle running expenses 9,556,335 9,338,358 10,277,705 10,929,048 11,475,501
Board expenses 5,241,823 5,582,542 5,945,407 6,331,858 6,743,429
TOTAL OPERATING G & OTHER COSTS 267,205,465 283,817,443 307,091,450 329,163,130 345,723,023
EARNINGS BEFORE INTEREST & TAX 124,853,799 96,134,651 104,284,494 101,288,340 106,251,020
DEP & AMORTIZATION
Depreciation 121,719,594 178,898,179 223,345,661 231,837,917 240,516,359
EARNINGS BEFORE INTEREST & TAX 3,134,206 (82,763,528) (119,061,167) (130,549,58) (134,265,39)
Finance costs 0 40,982,500 40,982,500 38,577,692 36,357,870
EARNINGS AFTER INTERESTS BEFORE 3,134,206 (123,746,028) (160,043,667) (169,127,20) (170,623,209)
TAX
Tax @30% 940,262
EARNINGS AFTER INTERESTS & TAX 2,193,944 (123,746,028) (160,043,667) (169,127,20) (170,623,209)

29

5 MONITORING AND EVALUATION
In order to realize the above strategic objectives and the
financial projections, close monitoring and evaluation
will need to be instituted to ensure that the strategic
objectives targets are met and the financial projections
are adhered to as much as possible. Overall, the Business
30
NAWASCO: Business Plan 2019-2023
Plan will need to be implemented closely with the
Strategic Plan and the County Integrated Development
Plan as M&E will be undertaken through the provisions
made in the balanced scorecard benchmarks in the
Strategic Plan.
NAWASCO: Business Plan 2019-2023

ANNEXES

31
 NAWASCO: Business Plan 2019-2023

ANNEX 1: DOCUMENTS FOR REVIEW

Approved & Actual Staff Establishment 2018

Final Nawasco Service Charter
List Of Employees On Short Term Contract
Nanyuki Water-CBA- Sept 2018-August 2021
Nanyuki Water-CBA- Sept 2018-August 2021
Nawasco Customer Satisfaction Report-Print (3)
Nawasco Human Resources Policy
Water Supply Area Map
Budget 2019 Adjusted
Feasibility-Study-For-The-Proposed-Muranga-Town-
Mukuyu-Water-Supply
Final Nawasco Business Plan 2013
Final Nawasco Draft Strategic Plan(2)
Loan Agreement Spv Trust To Water Company Draft (V5)
Nanyuki Proposed water tariff
Table of Contents Boniface
Wasreb_Impact_Issue 10

32
NAWASCO: Business Plan 2019-2023

ANNEX 2: LIST OF BOARD AND MANAGERS IN BUSINESS PLANNING

MEETING

NAWASCO BUSINESS PLAN MEETING

J. M. Muthurania Member of the Board
Winrose Nyaguthi Member of the Board
Nancy Githu Member of the Board
Eng. Kennedy Gitonga Managing Director
Eng. Simon Njoroge Deputy Technical Manager
Eng. Willy Kamau Technical Manager
Mr. Jacob Kikumu IT Manager
Mr. Odongo Hosborn NRW Officer
Mr. Paul Mwangi Management Accountant
Mr. Wachira Gakuru Commercial Manager
Mr. Frank Waudo Water Quality Officer
Mr. James Njenga GIS Officer
Ms. Phoebe Karimi Internal Auditor
Caroline Kihonge Human Resources Manager
Mr. Abdi Wario Bonaya Kenya Markets Trust
Mr. Michael Kamotho Managing Director, ADREC
Mr. Boniface F. Makau Consultant, ADREC

33
 NAWASCO: Business Plan 2019-2023

ANNEX 3: STAFFING PROJECTIONS

Designation 2019 2020 2021 2022 2023

Category
Managing In place 1 1 1 1 1
Director To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Financial In place 1 1 1 1 1
Manager To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Commercial/ In place 1 1 1 1 1
Marketing To be declared redundant 0 0 0 0 0
Manager
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
M&E Manager In place 1 1 1 1 1
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
HR&Admin In place 1 1 1 1 1
Manager To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Billing 2 In place 1 1 1 1 1
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Accountant 5 In place 5 5 5 5 5
To be declared redundant 0 0 0 0 1
To be recruited under
0 0 0 0 0
contract
Sub-Total 5 5 5 5 4

34
NAWASCO: Business Plan 2019-2023

Designation 2019 2020 2021 2022 2023

Category
Disconnec- In place 2 2 2 2 2
tions To be declared redundant 0 0 0 0 1
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 2 2 2 1
NRW Manager In place 1 1 1 1 1
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Meter Readers In place 7 6 6 5 5
To be declared redundant 1 0 1 0 2
To be recruited under
1 0 1 0 2
contract
Sub-Total 6 7 5 5 3
Auditor In place 1 1 1 1 1
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
ICT In place 1 1 1 1 1
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Procurement In place 1 1 1 1 1
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Maintenance In place 0 0 0 0 0
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 0 0 0 0 0

35
 NAWASCO: Business Plan 2019-2023

Designation 2019 2020 2021 2022 2023

Category
GIS In place 1 1 1 1 1
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Sewerage Su- In place 2 2 2 2 2
perintendent , To be declared redundant 0 0 0 0 1
Water 2
To be recruited under
0 0 0 0 0
contract
Sub-Total 2 2 2 2 1
Assistance In place 1 1 1 1 1
Auditor To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Registry clerk In place 1 1 1 1 1
2 To be declared redundant 1 1 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
HR&Admin In place 1 1 1 1 1
Manager To be declared redundant 1 1 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
I CT assistant In place 1 1 1 1 1
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1
Sewerage In place 5 5 5 5 5
Foreman To be declared redundant 0 0 0 0 1
To be recruited under
0 0 0 0 0
contract
Sub-Total 5 5 5 5 4

36
NAWASCO: Business Plan 2019-2023

Designation 2019 2020 2021 2022 2023

Category
Drivers In place 3 3 3 3 3
To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 3 3 3 3 3
Management In place 1 1 1 1 1
Accountant To be declared redundant 0 0 0 0 0
To be recruited under
0 0 0 0 0
contract
Sub-Total 1 1 1 1 1

37
 NAWASCO: Business Plan 2019-2023

ANNEX 4: IMPLEMENTATION PLAN 2019-2023

Proposed Indicators 2,019 2,020 2,021 2,022 2,023 Total

Activities Estimated
cost
Conduct detailed Detailed technical
design for water designs; ESIA; and
10,000,000 - - - - 10,000,000
distribution tender documents
network
increase water 4 Number of
source by boreholes drilled - 10,000,000 10,500,000 10,000,000 10,500,000 41,000,000
3000CM/day
3 no. elevated
storage tanks
- 10,628,816 5,314,408 - - 15,943,224
KWS, Baraka &
Majengo)
256KMs of various
sizes/dia. Water 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 200,000,000
Upgrade and pipelines (Air strip,
Rehabilitation 500m3 Recycling
of water water basin/tank - 10,000,000 10,000,000 - - 20,000,000
distribution
network 6957 additional
5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000
water connections
5 waters kiosks, 500,809 500,809 505,000 505,000 505,000 2,516,618
3 no. of 1000cm
of balance tanks
(silver Beck & st. - 15,000,000 15,000,000 15,000,000 45,000,000
Moses)
Construction of No.
260,000 260,000 260,000 260,000 260,000 1,300,000
15 yard taps
Development Low Income areas
of low-Income policy developed
500,000 500,000 500,000 500,000 500,000 2,500,000
areas policy and and implemented
strategy
Sub Total 56,260,809 91,889,625 87,079,408 71,265,000 56,765,000 363,259,842
Conduct detailed Detailed technical
design for sewer designs
- - 10,000,000 - - 10,000,000
network ; ESIA; and tender
documents
Extension of 10 kms of assorted
Sewer network sizes of sewer
28,141,994 18,264,788 23,815,807 16,390,089 25,813,514 112,426,192
and service pipelines (likii
B,Temu & Engen)

38
NAWASCO: Business Plan 2019-2023

Proposed Indicators 2,019 2,020 2,021 2,022 2,023 Total

Activities Estimated
cost
2 Sewer pumping
station (Teachers & - 28,000,000 28,000,000 - - 56,000,000
Likii A)
3660 new sewer
2,448,000 2,448,000 2,448,000 2,448,000 2,448,000 12,240,000
connections
Fencing of
sewerage - - 1,500,000 1,500,000 - 3,000,000
dumping site
Upgrade and Rehabilitation of
rehabilitation - 2,000,000 2,000,000 - - 4,000,000
2 no. old ponds
of sewerage
Desludging of
treatment 5,000,000 5,000,000 - - - 10,000,000
primary ponds
plant and
equipment’s Purchase of 1
exhauster truck - 8,000,000 3,000,000 - - 11,000,000
& tractor
Equipping of
the waste water 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 8,000,000
laboratory
Sub Total 37,189,994 65,312,788 72,363,807 21,938,089 29,861,514 226,666,192
Undertake Detailed report
detailed NRW on current NRW 3,500,000 3,500,000 - - - 7,000,000
assessment status
Develop NRW NRW policy
300,000 - - - - 300,000
Policy document in place
Carry out 12 PRV installed
Hydraulic and Hydraulic 600,000 600,000 600,000 600,000 600,000 3,000,000
Analysis profiles
Isolation of Establish 10 DMAs 100,000 - - - - 100,000
distribution Installation of 10
network 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000
DMAs Meters
Training/Coaching
of NRW, O/M, 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
Meter Readers
4 Pressure and
250,000 250,000 250,000 250,000 250,000 1,250,000
data loggers
Capacity building
3 motorbikes for
- - 200,000 200,000 200,000 600,000
line patrollers
2 Number of
ultrasonic flow - - 500,000 - 500,000 1,000,000
meters purchased

39
 NAWASCO: Business Plan 2019-2023

Proposed Indicators 2,019 2,020 2,021 2,022 2,023 Total

Activities Estimated
cost
Modern meter
testing bench - - - 1,200,000 - 1,200,000
introduced
Assorted leak
detection 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
equipments
Mapping of all GIS database/
water pipeline digital maps
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
and associated
appurtenances
Acquire modern
potable meter 1,000,000 - - - - 1,000,000
Undertake meter testing kit
Calibration Replacement of all
under- registering 3,960,000 3,960,000 3,960,000 3,960,000 3,960,000 19,800,000
meters
Sub Total 15,210,000 13,810,000 11,010,000 11,710,000 11,010,000 62,750,000
Waste water Install 2500cm3
10,000,000 60,000,000 20,000,000 20,000,000 4,000,000 114,000,000
recycling recycling plant
Accreditation of
200,000 200,000 200,000 200,000 200,000 1,000,000
the lab.
Commercialize Equipping of the
2,000,000 ` 2,000,000 2,000,000 2,000,000 8,000,000
Potable water laboratory
Certified lab
4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 20,000,000
technicians
Sub Total 16,200,000 64,200,000 26,200,000 26,200,000 10,200,000 143,000,000

Training/Coaching
of all staff as per 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000
the TNA
Implement
Nawasco
Integrated
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
Performance
Capacity building Management
System (NIPMS)
procure 2
motorbikes and 1 300,000 6,700,000 - - - 7,000,000
pickup
Networking of
1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 6,000,000
company sites

40
NAWASCO: Business Plan 2019-2023

Proposed Indicators 2,019 2,020 2,021 2,022 2,023 Total

Activities Estimated
cost
Procure smart
(coagulant/
- 2,000,000 2,000,000 - - 4,000,000
disinfectants)
dozer s
Install smart water
Automation level sensors
and loggers 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000
(SCADA, M2M and
Telemetric)
Purchase 20 Smart
200,000 200,000 - - - 400,000
phones
Sub- Total 11,700,000 23,100,000 11,200,000 7,200,000 7,200,000 60,400,000

Social Economic
1,000,000 - - - - 1,000,000
Survey report
Tariff Review
Application of RTA
1,000,000 - - - - 1,000,000
to WASREB
Enhance revenue Prompt
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
collection disconnection
Competitive Competitive Bids
Procurement
600,000 600,000 600,000 600,000 600,000 3,000,000
of goods and
services
Sub- Total 3,600,000 1,600,000 1,600,000 1,600,000 1,600,000 10,000,000

Review Existing HR policy/Audit/

Policies/Manuals Finance and
200,000 200,000 200,000 200,000 200,000 1,000,000
Administration
manual
Develop anti-
corruption/code of 300,000 300,000 300,000 300,000 300,000 1,500,000
ethics procedures
Develop New Introduce a
Policies metering and 1,000,000 500,000 1,500,000
billing policy
Gender company
300,000 300,000 300,000 300,000 300,000 1,500,000
policy

41
 NAWASCO: Business Plan 2019-2023

Proposed Indicators 2,019 2,020 2,021 2,022 2,023 Total

Activities Estimated
cost
Water and safety,
Computer security,
Risk Management,
Procurement
policy,
Corporate Social
800,000 800,000 800,000 800,000 800,000 4,000,000
Responsibility,
asset
Management,
Corporate
Governance,
Technical services,
Develop an
environmental 300,000 300,000 300,000 300,000 300,000 1,500,000
and social policy
Sub Total 1,900,000 2,900,000 2,400,000 1,900,000 1,900,000 11,000,000
Streamline
Replacement Repair and
of aged 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000
Maintenance
infrastructure/ Schedule
plants,
equipment and ICT infrastructure
machines upgrade & 600,000 600,000 600,000 600,000 600,000 3,000,000
maintenance
Sub- Total 5,600,000 5,600,000 5,600,000 5,600,000 5,600,000 28,000,000
Audit Report 250,000 250,000 250,000 250,000 250,000 1,250,000
Acquisitions of
firefighting 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000
Undertake equipment’s
Occupational
Safety and Acquisitions
Health Audit of safety and
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
protective gears/
equipment

OSHO Committee 200,000 200,000 200,000 200,000 200,000 1,000,000

6 Fire drills 800,000 800,000 800,000 2,400,000
Capacity
building 20 Medical
Checkup/ 600,000 600,000 600,000 600,000 600,000 3,000,000
vaccination
Sub- Total 4,050,000 4,850,000 4,850,000 4,050,000 4,850,000 22,650,000

42
NAWASCO: Business Plan 2019-2023

Proposed Indicators 2,019 2,020 2,021 2,022 2,023 Total

Activities Estimated
cost
Contract with ISO
3,000,000 1,000,000 1,000,000 - - 5,000,000
Body
Identify ISO Action Plan 800,000 800,000 800,000 800,000 800,000 4,000,000
certification Body Initial Certification
- 500,000 - - - 500,000
Audit
Surveillance Audit 500,000 500,000 500,000 1,500,000
Sub Total 3,800,000 2,800,000 1,800,000 1,300,000 1,300,000 11,000,000

Customer
3 No. Customer
satisfaction 1,500,000 - 1,500,000 - 1,500,000 4,500,000
satisfaction survey
survey
Customer Clinics 10 No. clinics 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
Regular Review
5 No. Review
of Customer 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
process
Service Charter
Improve
Complain Maji Voice
260,000 260,000 260,000 260,000 260,000 1,300,000
Handling Enhancement
Mechanism
Sub-Total 3,760,000 2,260,000 3,760,000 2,260,000 3,760,000 15,800,000

Continuous No. Samples

adherence to passed
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
WHO drinking
water standards
Replace water Acquire Filter
- 2,000,000 2,000,000 - - 4,000,000
filter media Media
Sub-Total 1,000,000 3,000,000 3,000,000 1,000,000 1,000,000 9,000,000

Hybrid (solarize)
Introducing
water pumping
hybrid/ solarize
system introduced 2,271,689 3,372,816 2,500,000 2,800,000 3,000,000 13,944,505
water pumping
(Inooro &
system
Northern)
Prompt No. of Burst and
attendance leaks attended
400,000 400,000 400,000 400,000 400,000 2,000,000
to Burst and within 2 hours
leakages
Sub-Total 2,671,689 3,772,816 2,900,000 3,200,000 3,400,000 15,944,505

43
 NAWASCO: Business Plan 2019-2023

Proposed Indicators 2,019 2,020 2,021 2,022 2,023 Total

Activities Estimated
cost
Carry out
Training Needs
training needs 200,000 200,000 200,000 200,000 200,000 1,000,000
Assessment Report
assessment
Build in the
employees
training Performance
needs in their objectives with 200,000 - 200,000 - - 400,000
performance competency needs
development
plan
Track the training Training
development and implementation - 400,000 - - - 400,000
development plan documented
opportunities No of Job
provided for all Evaluation and 200,000 200,000 200,000 200,000 200,000 1,000,000
employees Appraisals
Carry out on job No. On the
training job training 200,000 200,000 200,000 200,000 200,000 1,000,000
implemented
Benchmarking 5 No. of
exercises benchmarking
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
visits organized
and implemented
Sub Total Sub-total 1,800,000 2,000,000 1,800,000 1,600,000 1,600,000 8,800,000

Develop clear JD's Clear JDs for the

400,000 - - - - 400,000
for all staff staff developed
Conduct
No. 10 Appraisal 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
appraisals
Conduct result No.10 meetings
based meetings. held
Sub-Total 1,400,000 1,000,000 1,000,000 1,000,000 1,000,000 5,400,000

Develop
Communication
Communication 400,000 - - 200,000 - 600,000
Policy
Policy Document
Appoint/Recruit
Corporate
Corporate
Communication 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
Communication
Officer
Officer
Sub-Total 1,400,000 1,000,000 1,000,000 1,200,000 1,000,000 5,600,000

44
NAWASCO: Business Plan 2019-2023

Proposed Indicators 2,019 2,020 2,021 2,022 2,023 Total

Activities Estimated
cost
Motivation, Conducive work
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
regular feedback place
and inspiring
management Job enrichment 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000
Sub-Total 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000

1 Innovation hub
established and
Establish financed
3,000,000 1,000,000 1,000,000 1,000,000 1,000,000 7,000,000
innovation hub Number of
Innovations
churned out
Sub-total 3,000,000 1,000,000 1,000,000 1,000,000 1,000,000 7,000,000

TOTAL 32,381,689 32,182,816 31,110,000 26,110,000 28,410,000 150,194,505

TOTAL (SP) 172,542,492 292,095,229 240,563,215 166,023,089 145,046,514 1,016,270,539

Recurrent O&M
265,000,000 268,000,000 270,000,000 272,000,000 275,000,000 1,350,000,000
Costs
%age O&M 61 48 53 62 65 57
Grand total 437,542,492 560,095,229 510,563,215 438,023,089 420,046,514 2,366,270,539

45
 NAWASCO: Business Plan 2019-2023

BOARD OF DIRECTORS

Yusuf Mohamed Winrose Nyanguthii Jane Kiama

Board Chairman Vice Chair of the Board Director

Eng. Maina Thuku Esther Ndegwa Sammy Murithii

Director Director Director

Nancy Githu Col. Lawrence Nteere Eng. Kennedy Gitonga

Director Director Managing Director

46
NAWASCO: Business Plan 2019-2023

MANAGEMENT

Eng. Kennedy Gitonga Willy Kamau Caroline Kihonge

Managing Director Technical Services Manager HR and Administrator Manager

Wachira Gakuru Paul Mwangi Phoebe Karimi

Commercial Manager Management Accountant Internal Auditor

47
Nanyuki Water and Sewerage Company
P.O. Box 995- 10400 Nanyuki Kenya,
Along Nanyuki-Meru Road
Tel: 062 2031351
Email: info@nawasco.co.ke
Website: www.nawasco.co.ke