The Energy and Petroleum Regulatory Authority (EPRA) has declared a significant 16.5% increase in electricity prices. This action will inevitably result in higher living expenses for businesses and households in an already struggling Kenyan economy.
Last week, Kenyans who purchased tokens worth KES 250 received 8.87 units whereas this week, the same amount only accounted for 7.82 units.
This comes against the backdrop of a weakened national currency, as the shilling continues to depreciate against the United States (US) dollar and other currencies. The change in token value was occasioned by the sharp increase in the forex adjustment charge which rose from KES 28.11 to KES 50.53.
The forex adjustment is the forex charge deducted when buying tokens. It is based on the variation of hard currencies against the Kenyan Shilling. The dollar has currently dominated the Kenyan Shilling with the currency currently trading at an average of KES159 resulting in the hiked prices of tokens.
Kenya Power charges a 16 per cent VAT on the pre-paid token units on the components such as fixed charges, consumption, fuel cost charges, forex adjustments, demand charges and inflation adjustments.
Last week, Kenyans who purchased tokens worth KES250 received 8.87 units whereas this week, the same amount only accounted for 7.82 units.
Some Kenyans have expressed their discontent on social media regarding the prices of goods, questioning the government’s recurring assurance that they are actively addressing the issue of reducing the cost of living.
