Gov’t announces drop in electricity cost

Thursday, February 8th, 2024 15:20 | By
Gov't announces drop in electricity cost by Ksh3.44 per unit
Kenya power prepaid token meter. PHOTO/People Daily Digital

Consumers received a much-needed reprieve on Thursday, February 8 as the government announced a drop in electricity costs by Ksh3.44 per unit.

In a statement, Government Spokesperson Isaac Mwaura said the move follows a decrease in total foreign currency exchange payments made last month, resulting in the drop of the Fuel Energy Cost from Ksh6.45 to Ksh3.22 per kilowatt-hour (kWh)

"To further make power affordable for our consumers, and to spur our industrial revolution, the government has reduced the cost of electricity by Ksh3.44 per unit, across all customer bands," Mwaura said.

Earlier, the Energy and Petroleum Regulatory Authority (EPRA) told a local publication that the power prices had dropped by an average of 9.3 per cent.

Consequently, domestic customers will now pay Ksh29 per kWh this month, down from Ksh32 per unit paid last month.

“This is due to a significant reduction in the forex adjustment on account of a decrease in the total foreign currency exchange payments made in January 2023,” EPRA Director-General Daniel Kiptoo told the Business Daily.

The latest review comes as a relief for consumers who have been struggling with high power costs since EPRA's decision to raise fuel and foreign charges on the commodity in January, resulting in Kenyans paying as much as 16.5 per cent more for electricity.

In its power prices review last month, EPRA increased the energy charge by 8.7 per cent to Ksh4.33 per unit up from Ksh3.98 in December.

The move elicited protests from a section of Kenyans, who took to social media to call out President William Ruto's Kenya Kwanza administration over its failure to tame the rising cost of living.

Former Vice President and Azimio la Umoja - One Kenya coalition co-principal Kalonzo Musyoka said the increase in electricity cost by 16 per cent was a clear indication that President William Ruto's administration had reneged on its promise to lower the cost of living.

"The 16% increase in tokens by @KenyaPower is the latest unacceptable burden on tired, hungry and angry Kenyans. This is a clear example of the KK regime's inability to address the cost of living. They want to leave us in the dark, but I am telling them, know kuna nuru gizani," Kalonzo wrote on X (formerly Twitter).

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