1
NAWASSCO Project Proposal
Up-scaling Prepaid Metering, Staff Training & Pilot Maji Soko Kiosks
Table of Contents
1.
Background......................................................................................................................... 3
2.
The Current Water Supply Situation in Nakuru’s LIAs ....................................................... 3
3.
Why Providing Services in Nakuru LIAs? ............................................................................ 3
4.
Key Challenges faced by the Low Income Area Residents ................................................. 4
5.
Project Overview ................................................................................................................ 4
Maji Soko Kiosks ..................................................................................................................... 4
Additional Prepaid Meters (Yard Taps) .................................................................................. 5
6.
Project Duration ................................................................................................................. 5
7.
Target Population ............................................................................................................... 5
8.
Advantages of NAWASSCO’s Prepaid Metering System .................................................... 6
9.
Advantages of Maji Soko Kiosks ......................................................................................... 6
10. Key Project Deliverables ..................................................................................................... 6
11. Overall Goal ........................................................................................................................ 7
12. Project Objectives .............................................................................................................. 7
13. Project Justification ............................................................................................................ 7
14. SWOT Analysis .................................................................................................................... 8
Strengths ................................................................................................................................. 8
Weaknesses ............................................................................................................................ 8
Opportunities.......................................................................................................................... 8
Threats .................................................................................................................................... 9
15. NAWASSCO’s Involvement in the Project .......................................................................... 9
Required Staff ......................................................................................................................... 9
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Roles and Responsibilities of the 3 Field Staff Members ....................................................... 9
The Commercial, Technical and the Finance Sections of the NAWASSCO ............................. 9
16. Roles and Responsibilities of other Project Stakeholders.................................................. 9
The Water Services Trust Fund ............................................................................................... 9
Role of the WSTF Field Monitors .......................................................................................... 10
17. The Project Task Team ..................................................................................................... 10
Role and Responsibilities of the Project Task Team ............................................................. 10
18. The Community Sensitization and Education Programme .............................................. 11
List of acronyms ....................................................................................................................... 11
APPENDICES.............................................................................................................................. 12
Appendix 1: Overall Proposed Budget.................................................................................. 12
Appendix 4: Training of NAWASSCO Technical & IT Staff on Prepaid Meter System .......... 13
Appendix 5: Accompanying Measures Budget for Six (6) Months. ...................................... 14
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1. Background
NAWASSCO is one of the 62 Kenyan Water Service Providers (WSPs) and is one of the 4 'very
large' service providers. NAWASSCO was contracted to provide water and sanitation services
to the Municipal Council of Nakuru by the Rift Valley Water Service Board (RVWSB) through
a Service Provision Agreement (SPA) that was signed on the 31st of May 2004. The key
contractual obligation of NAWASSCO, as spelled out in the SPA, is to provide water and
sanitation services to the people of Nakuru Town and its environs in an efficient, effective
and economical manner.
The SPA between the RVWSB and NAWASSCO incorporates an undertaking for NAWASSCO
to report on service provision to the low income areas known as the urban poor and
incorporated specified pro-poor targets to be achieved. As part of the strategy to achieve
this requirement, NAWASSCO is implementing pre-paid metering technology to serve the
urban poor. So far 92 out of 95 pre-paid meters (3 are faulty) have been installed in a
number of low income areas (LIAs) and the company is in the process of up-scaling this
technology to other LIAs.
To ensure an effective and successful up-scaling, operations and maintenance of the prepaid metering technology, NAWASSCO wishes to improve the design and set-up of the
prepaid metering technology environment and strengthen the capacity of its staff to operate
and maintain the prepaid meters.
2. The Current Water Supply Situation in Nakuru’s LIAs
Nakuru town is located in Nakuru County and is the fourth largest town in the country.
Nakuru town has a population of 473,288 people (Census 2009). Due to the high rate of
rural-urban migration, accelerated by the recent civil clashes, the population is projected to
grow at a rate of 4.5% per annum.
With a municipal service area of 270 km2 (of which 50 km2 in peri-urban areas outside of the
Nakuru Municipal Council), Nakuru is one of the fastest growing towns in East Africa. Within
Nakuru town, approximately 207,843 people live in 40 (un-)planned LIAs (MajiData); this
equates to approximately 40% of the urban population.
A majority of the informal settlements residents consume piped water, but service delivery
varies. Approximately 6 % percent of all LIA residents have a household connection, 66% use
a yard tap connection, 16% a water kiosk, an estimated 2% receive water from a prepaid
meter (yard tap) while an estimated 10% percent purchase their water from water kiosks
operated by community groups or individual entrepreneurs or from pushcart vendors. Kiosk
vendors sell water in 20-litre jerry cans at KSh 2.00 each while informal vendors re-sell water
to their customers for between KSh10.00 and KSh 20.00 per 20 litres depending on water
availability (source: NAWASSCO).
3. Why Providing Services in Nakuru LIAs?
Nakuru’s urban population is majorly composed of the low income earners both in the
planned and unplanned settlements consequently; informal settlement residents are the
highest-paying consumers in town per cubic meter. On average, poor non-connected
households spend a higher share of their monthly income on water. In Kenya, as in most
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African countries, lack of access to modern water services is a contributing factor to poverty
since households spend limited income on expensive water. Illegal connection is also high in
these settlements and this is where most water vendors get water for sale. Water theft and
low revenue collection have a significant negative impact on NAWASSCO and RVWSB’s
finances and ability to expand coverage.
4. Key Challenges faced by the Low Income Area Residents

Bad smell originating from blocked sewer pipes, insufficient water supply and low
water pressure.

High cost of private connections (piped water) to the plot, unaffordable for low
income earners.

There are only 3,116 number of Households/individual connections which only serves
24,928 persons, many poor residents cannot promptly pay the upfront fee of
Ksh.2,700/=, hence not every poor resident is covered.

There are only 2,069 number of Yard Taps serving a total of 107,650 persons but
landlords are reportedly over rationing water provision to tenants hence under
service to the poor residents.

There are 34 number of water kiosks serving a total population of 17,000 but this is
characterized by high cost of water to poor consumers, long queues, and mode of
payment which is in cash…quite unfavourable to the poor residents.

There are only 92 prepaid meters which currently serve a population of 22,080. This
is only 2% in coverage but is quite affordable, convenient, reliable and demand
driven by the low income earners.
5. Project Overview
Maji Soko Kiosks
The Nakuru Water and Sanitation Services Company (NAWASSCO) proposes to pilot the
construction of innovative prepaied ‘Maji Soko’ (water choices) kiosks in Nakuru’s informal
settlements (i.e. Ponda Mali Market, Kipanga Way, Nakuru Press and Lumumba).
The hypothesis behind the Maji Soko concept involves empowering poor customers in
decision-making, through providing feedback on their purchasing choices, which is then used
to adjust service levels and develop options to match user needs and preferences.
Customers of the Maji Soko kiosk can have water delivered at their doorstep by a vendor
who uses a metered hosepipe which gets water from the kiosk. In addition to home delivery,
customers using containers and donkey carts can also fetch water at the kiosk.
The Maji Soko concept (Water choices kiosk) was first published by Dr. Richard Franceys and
Esther Gerlach in: Regulating Water and Sanitation for the Poor: Economic Regulation for
Public and Private Partnerships (2008). Initial research and pilot experiments have been
implemented by Cranfield researcher Jack O’Regan, from June 2011 to September 2012
using simple technologies and monitoring the results. The pilots are currently on-going in the
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slums of Nairobi (Mukuru) & Kisumu (Obunga). Monitoring and evaluation of the Nairobi
experiments is currently being undertaken by Haki Water.
The proposal for implementing the Maji Soko concept in Nakuru was discussed and agreed
by the project implementation team during a meeting held on 19 th April 2013 at the Water
Services Trust Fund offices.
Additional Prepaid Meters (Yard Taps)
Prepaid meters (no. 95) were introduced in Nakuru one year ago. The pilot project was
implemented by NAWASSCO with the support of SUWASA and the WSTF. All stakeholders –
landlords/ladies, tenants and the WSP – consider the prepaid yard tap to be a success. The
successful operation of the initial pilot project prepaid yard taps has generated a higher than
expected demand for additional prepaid yard taps.
Areas targeted by the pre-paid meter system include; Mwariki South, Kaptembwa, Rhonda
and Council Estates all within Nakuru’s LIAs. The proposed sites were informed by the fast
growing demand for the prepaid meters in these areas.
Through stimulating pro-poor innovation, the objective of the pre-paid metering concept is
to enable NAWASSCO extend access to safe water for Nakuru’s urban poor in tandem with
Kenya’s strategic goals (aligned to the MDG’s) and explore methods to upscale the use of
pre-paid meters based on the initial successes of the operational pilots in Nakuru.
In relation to staff capacity building, NAWASSCO is currently experiencing key challenges
relating to software configuration, report generation, operations and maintenance of the
pre-paid meters.
6. Project Duration
Given the fact that this project has three different components, i.e.:



the Maji Soko kiosks,
the prepaid meters (yard taps),
and capacity building of NAWASSCO’s Technical and IT Sections on Prepaid meter
management,
the number of tasks and the complexity of some of these tasks, a total duration of 6 months
is realistic.
If the project can officially start in the first week of September, 2013, it can be commissioned
in February, 2014.
7. Target Population
With the implementation of:




fifty (50) pre-paid meters (yard taps) (1,500 beneficiaries),
2,000 tokens for the prepaid meters,
four (4) Maji Soko water kiosks (6,000 beneficiaries),
and 15 NAWASSCO Staff trained on prepaid meter operation maintenance and
system management,
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the Project intends to benefit a total of 7,500 LIA residents.
8. Advantages of NAWASSCO’s Prepaid Metering System
The main advantages of the prepaid meters can be summed up as follows:
 Water is always accessible (if the WSP is supplying 24/7).
 The tenant has his or her own token and is, therefore, not dependent on the
landlord/landlady.
 Landlords/landladies may not attempt to charge more for safe water than the
approved tariff. The prepaid meter system provides unrestricted access.
 Since tenants have to pay (themselves) for every drop they fetch water wastage is
likely to be minimal.
 The WSP can ensure that token holders fetch water at the approved tariff.
 Revenue collection efficiency is guaranteed.
 Reduced level of dormant connections to improve consumers’ confidence and
increase the WSP’s revenue base.
 Reduced opportunity for fraud by middlemen and staff.
 Highly reliable and convenient access.
 Reduced operation costs to the WSP.
 Public water access is provided at the standard NAWASSCO tariff.
9. Advantages of Maji Soko Kiosks
The key advantages of the Maji Soko Water Kiosk can be summed up as follows:







Manned by dedicated community persons with vested financial interest.
Public access at regulated price.
Enhances social responsibility.
Easily accessible to any person with cash.
Provides the poor consumer with various options depending on the purchasing
power of every consumer.
Serves a very large number of customers.
Empowers economically, the facility operators hence improves their quality of life.
10. Key Project Deliverables
The 50 Pre-paid Meters will serve a population of approximately 1,500 LIA residents. Four
(4) Maji Soko Kiosks will serve over 6,000 people since the kiosks will be constructed at
public and accessible spaces where everyone, including the water resellers operating in the
areas can buy water.
The overall objective of the training of relevant NAWASSCO staff members will be to
improve the functionality of the pre-paid metering technology and strengthen the capacity
of staff to operate and maintain pre-paid meters. The 15 NAWASSSCO Staff trained on
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Prepaid Meter Operation Maintenance and System Management will be of great support to
day to day operation and maintenance of the project.
11. Overall Goal
The Proposed project aims at improving the quality of water service provision to the low
income earners at convenient, affordable and sustainable way.
12. Project Objectives
The main objectives of the NAWASSCO Up-scaled Prepaid Meters Project should achieve the
following objectives:
1. A public health and social objective: the urban poor will have affordable access to
safe water.
2. A technical objective: the system is easy to maintain and therefore sustainable.
3. A commercial/financial objective: the system allows for the coverage of all operation
and maintenance and replacement costs.
4. An environmental objective: the system does not have a negative impact upon the
(micro) environment and water wastage is reduced.
5. A corporate image objective: NAWASSCO is being perceived by residents, customers
and the Sector as being innovative and as caring for the needs of all people residing
within its service area, including the urban poor.
6. To build the technical, commercial and ICT capacity in operation and maintenance
7. A sector/regulatory objective: The project is in line with the sector reforms and
adheres to the standards, guidelines & regulations sets by the regulator, WASREB.
8. Improving the sustainability of the NAWASSCO water supply schemes and revenue
base.
9. Establish a strong NAWASSCO presence in the Project areas in Nakuru Areas.
10. Improve the quality of service delivery provided by the NAWASSCO.
11. Strengthen the role of the community and of the project stakeholders in community
development initiatives.
13. Project Justification
An estimated 2% of the residents of the LIAs in Nakuru County currently consume piped
water using the affordable, flexible, accessible and technologically advanced service
provision provided by prepaid meters (yard taps) while an estimated 10% of all LIA residents
purchase their water from water kiosks operated by community groups, kiosks operated by
individual entrepreneurs or from pushcart vendors. Kiosk vendors sell water in 20-litre jerry
cans at KS 2.00 each while informal water vendors re-sell water to their customers for a
price ranging between KSh10.00 and KSh 20.00 per 20 litres depending on water availability.
(Source NAWASSCO 2012). In recent months (since the commissioning of the prepaid meters
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project in Manyani) there has been growing demand for prepaid meters emerging from the
LIAs Landlords and landladies and their tenants see the advantages of having access to a
prepaid yard tap.
Some of Nakuru’s informal settlements are planned but many are unplanned. Both types of
area are characterised by their inadequate infrastructure (roads, water, sanitation,
sewerage, drainage, and electricity), lack of clean and affordable water, poor sanitation and
substandard hygienic conditions. What can be observed during a visit to the LIAS was
confirmed by the MajiData survey (2009/11) carried out by the WSTF and by the consumer
satisfaction survey conducted by NAWASSCO which revealed the informal settlement
residents’ general discontent with current services delivery standards. The continuing
expansion and densification of the LIAs add to the urgency to improve and upgrade service
delivery standards in these areas.
The proposed project will, therefore, contribute to improving access to safe water and,
through the introduction of innovative water supply options & technologies, to the
improvement of service delivery standards.
14. SWOT Analysis
What are the main strengths, weaknesses, opportunities and threats related to the WSP,
service delivery and the LIAS?
Strengths

The WSP has a Pro-Poor Project Coordinator to spearhead service provision in LIAs.

The WSP has both technical and financial support from development partners.

Many LIAs are relatively well planned (e.g. they have a proper layout).

The Pro-Poor Unit of NAWASSCO has full support from all the relevant departments
within the WSP.
Weaknesses

High water losses due to leakages and old infrastructure leading to high non-revenue
water (NRW).

Inadequate information gathering system on LIAs.

Inadequate technical and IT information knowledge/capacity on the prepaid
metering technology.
Opportunities

Availability of development partners to support the pro-poor activities.

Existence of community structures and or organizations useful in community
mobilization and sensitization.

Good opportunity for networking with other stakeholders within the sector which
can be utilized.

New opportunities available to serve the LIAs i.e. prepaid metering technology.
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Threats

Poor attitude towards cost sharing by the target group who think the services should
be provided for free.

Existence of illegal connections, meter bypasses and meter reversals.

Rural-urban migration that will accelerate growth of informal settlement leading to
increased vandalism and theft of water meters and sanitation facilities.
15. NAWASSCO’s Involvement in the Project
Required Staff
The following NAWASSCO staff members will be part of the project implementation team in
Nakuru (i.e. they will work with the Project Task Team and stakeholders):

The Pro-Poor Focal Person.

The Technical Staff.

The Project Finance Officer.
Roles and Responsibilities of the 3 Field Staff Members
The main tasks and responsibilities of the three (3) field staff members of NAWASSCO are
described in the Job Descriptions prepared by NAWASSCO (available at request) and the
three members of staff shall work in close collaboration with the Field Monitors of the WSTF.
The Commercial, Technical and the Finance Sections of the NAWASSCO
The introduction of the prepaid meters will be done in close collaboration with the
Technical, Finance and ICT Departments of NAWASSCO. The participation of the
management of these departments is crucial as the prepaid meters and water Maji Soko
Kiosks have to be embedded into existing billing systems and procedures.
16. Roles and Responsibilities of other Project Stakeholders
The Water Services Trust Fund
The WSTF will appoint a (Social) Field Monitor to provide support to the project. The
emphasis of the WSTF support will be on:

Providing support to the project’s technical, financial and accompanying measures
components.

Developing scheme management & operation concepts (e.g. procedures) together
with NAWASSCO.

Ensuring the good cooperation and coordination of project activities.

Developing, together with the other stakeholders sensitization posters.
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Role of the WSTF Field Monitors
The roles and responsibilities of the three (3) Field Monitors of the WSTF (a Social, Finance
and Engineering Field Monitor), who are all part of the Project Task Team, can be summed
up as follows:

Assisting the WSP with the implementation of the WSTF-funded project.

(If required) capacity building of WSP staff.

Training (e.g. of kiosk- and public sanitation facility operators).

Monitoring of the project on behalf of the WSTF.

Reporting progress & challenges to the WSTF enabling the Fund to include the
innovations and solutions that were developed during the implementation and
operation of the projects it has funded in its toolkits and procedures.
Field Monitors are not responsible for the implementation and operation of the WSTFfunded projects. They provide support to a project which is owned by the Water Service
Provider.
The Field Monitors will report to the UPC Team Leader who eventually reports to the Chief
Executive Officer of the WSTF.
The number of days the Field Monitor will be expected to monitor this project will be
determined by the nature of his/her tasks and responsibilities within the project right from
the design, planning, implementation and operation with careful assessment of the time
which is needed to create a sustainable water service provision and high customer
satisfaction levels in Nakuru.
17. The Project Task Team
All stakeholders will become part of the Project Task Team. This team will be coordinated by
the Pro-Poor Coordinator of the Low Income Areas (LIAs). The PPPC together with the Social
Field Monitor of the Water Services Trust Fund will prepare and coordinate the composition
and the Project Task Team’s terms of reference (ToR).
Role and Responsibilities of the Project Task Team
The main responsibility of the project task team is to ensure successful implementation of
the project by performing the following among other duties and responsibilities as
documented in their Terms of Reference (ToR):
 Prepare the Project implementation programme
 Organize/ implement the various activities listed in the programme.
 Involve the residents (even the marginalized members of the community) in the
project.
 Monitor progress.
 Ensure that all activities (including the technical works and community sensitization)
are well coordinated.
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18. The Community Sensitization and Education Programme
The community education programme shall consist of the following elements/activities:
The prepaid meter itself:

How the prepaid meter work.

Keeping the prepaid yard tap in tip-top condition.

Keeping the prepaid yard tap clean; a shared responsibility.

Why it is rather futile to vandalize the prepaid meters (no money or valuable
materials inside).

How the Company can identify by-passes by monitoring consumption.

How to report damage and poor- or non-functionality to the WSP.

How to manage your prepaid meters; (with special emphasis targeting landlords &
landladies and tenants).
Customers will be discouraged from using small receptacles for fetching water as this leads
to increased wear and tear of the prepaid meter, decreased battery life and to more water
wastage. Preferably users should use a container with a minimum size of 10 litres.
The sensitization programme shall also include explanations on the NAWASSCO rationing
programme.
List of acronyms
IT:
KSh:
LIA:
MDG:
NAWASSCO:
NEMA:
PHO:
PPM:
PPPC:
RVWSB:
SWOT:
SUWASA:
ToR:
WASREB:
WSP:
WSTF:
NAWASSCO
Information technology
Kenyan Shilling
Low income area
Millennium Development Goals
Nakuru Water and Sanitation Services Company
National Environmental Management Authority
Public Health Officer
Prepaid meter
Pro-Poor Project Coordinator (NAWASSCO)
Rift Valley Water Services Board
Strengths, Weaknesses, Opportunities & Threats
Sustainable Water and Sanitation in Africa
Terms of Reference
Water Services Regulatory Board
Water Service Provider
Water Services Trust Fund
Project Proposal
July 2013
12
APPENDICES
Appendix 1: Overall Proposed Budget
The table below provides the summary of the proposed project budget.
No.
Item
Quantity
1
Maji Soko Water Kiosk
2
Pre-paid meters (PPM) and tokens
3
Capacity Building/Training of NAWASSCO’s
Technical and IT Staff on Prepaid Meter System
4
Accompanying Measures
Total cost (in KSh)
4
2,305,621.52
50 (PPM)& 2,000 (tokens)
15 (staff members)
--
Budget for Haki Water (monitoring)
See Appendix 6
GRAND TOTAL:
NAWASSCO
Project Proposal
1,500,000.00
473,865.00
TOTAL
5
7,096,950
11,376,436.52
290,880
11,667,316.52
July 2013
13
Appendix 4: Training of NAWASSCO Technical & IT Staff on Prepaid Meter System
Training activity and targeted staff
PROFESSIONAL
FEES
TRAINING
1
Hardware
andFOR
Software
Training Needs requirements Assessment
1.1 Commercial & Billing expert/ Team leader
1.2 ICT Specialist
1.3 O & M specialist
2
Development of Training modules, SOPs & Report Formats
2.1 Commercial & Billing expert/ Team leader
2.2 ICT Specialist
2.3 O & M specialist
2.4 Backstopping Expert
3
Systems re-Configurations & Capacity Development
3.1 Commercial & Billing expert/ Team leader
3.2 ICT Specialist
3.3 O & M specialist
3.4 Backstopping Expert
4
Operations Trouble shooting & Backstopping during up-scaling
4.1 Commercial & Billing expert/ Team leader
4.2 ICT Specialist
4.3 O & M specialist
The total cost for training will be 1.5million shillings and the trainers will be outsourced.
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Appendix 5: Accompanying Measures Budget for Six (6) Months.
No.
Activity Description
1.
a
Sensitization
campaign/awareness
creation
Road shows
3
10,000
30,000
b
Posters
1
6,000
6,000
c
Public announcement
2
10,000
20,000
2.
Public/community
meetings and barazas
Monthly Project task
team meetings
Formal
project
discussions with the
community
Training of water choices
kiosk operators
6
7,600
45,600
8 *6
persons
3
1,000
48,000
7,600
22,800
3days
27,300
81,900
2
6 months
2,500
5,000
192,000
3.
4.
5.
6.
7.
NEEMA Licensing
Allowances
for
3
NAWASSCO
implementation team
8.
Total
Contingency @5%
NAWASSCO
Quantity
Rate
Totals
Remarks
Road shows to create awareness after every 2 months
of the project implementation period of 6 months
A poster/banner of the project will be designed once to
cover the entire project period
Public announcement using the local radio stations
during the launch and just before commissioning
The total includes hire of tents ,chairs PAs and
refreshments
8 project task team members having monthly meetings
within the project implementation period (6 months)
There will be 3 formal project discussions with the
community members to get their views and feedback
regarding the project
 20 persons (2) operators per kiosk, 3 TLs from
NAWASSCO, 1 PHO, 2 Provincial admin, FM’s and 3
invitees
 Transport for 3 days for 11pple @300 per day, lunch
and 10.am tea for 20 persons @1200
NEMA licensing for two occasions
NAWASSCO’s
Pro-poor rep: 12,000 per month
Technical rep: 12,000 per month
Accounts rep: 8,000 per month
22,565
473,865
Project Proposal
July 2013