Energy Principal Secretary Alex Wachira has announced a reduction of KES 3.44 per unit in the cost of electricity for all categories of power consumers. He attributed this decrease to a decline in the foreign exchange adjustment rate, which dropped from KES 6.46 to KES 3.22.
This adjustment reflects the variation of hard currencies against the Kenyan Shilling, with the current exchange rate for the dollar standing at KES 160. Prepaid users began enjoying the new rates on Thursday 8, morning while postpaid users will pay less at the end of February.
Kenyans who purchased tokens on Wednesday worth KES 250 received 8.77 units whereas last month in January, the same amount only accounted for 7.82 units.
The government charges a 16 per cent VAT on the pre-paid units on several components such as fuel energy costs, fixed charges, consumption, foreign adjustments, demand charges and inflation adjustments.
The PS had recently assured Kenyans of lower electricity prices, pointing to an abundance of hydropower supply. He explained in an interview that KPLC has shifted focus towards hydro-production over thermo-production due to improved hydrology and dam levels. As a result, the proportion of renewable energy in KPLC’s portfolio has risen from 92% to 96%, reducing thermo-plant generation from 8%-10% during low hydrology periods to 4%.
