Reprieve for Kenyans as Kenya Power has announced a reduction in electricity prices following a review of additional costs associated with token prices. The prices of electricity have dropped by an average of KES 1 per unit in March 2024, marking a reduced cost for the second consecutive month.
In February, for a KES 300 purchase, Kenya Power charged KES 34.88 for VAT and KES 43.56 for Fuel Energy Charge. However, in March the VAT was reduced to KES 34.18 while the Fuel Energy Charge was reduced to KES 38.46.
The Fuel Energy Charge represents the additional expenses or refunds passed on to consumers due to changes in global prices and variations in the volume of oil used for electricity generation. This charge is adjusted one month after the actual fuel price fluctuation occurs.
Pursuant to Clause 1 of Part III of the Schedule of Tariffs 2023, notice is given that all prices for electrical energy specified in Part II of the said Schedule will be liable to a fuel energy cost charge of plus 364 Kenya cents per kWh for all meter readings to be taken in March 2024,” EPRA director general Daniel Kiptoo said in a gazette notice.
The recent drop in prices is greatly attributed to cheap hydropower which resulted from the heavy rains witnessed last year.
The Energy and Petroleum Regulatory Authority (EPRA) lowered the energy fuel costs from KES 4.14 per kilowatt-hour (kWh) in February to KES 3.64 in March and Kenya Power increased purchase of cheaper hydropower to 260.88 million units in February, an increase from 253.4 million units in January, reducing bill pressures.
The strengthening of the shilling against the dollar also played a factor in the drop. KPLC managing director Joseph Siror assured consumers that the prices of electricity would reduce in the coming months due to the strengthening of the shilling.
“For long, foreign currency was not available thus the increased payments which ultimately will level out as we clear the backlog of payments,” Siror said.
