Double Trouble For Kenyans As Kenya Power Increases Electricity Prices

Joy Waweru | 1 year ago
Consumers hit with increase in electricity prices FILE:COURTESY


Hours after EPRA reviewed the fuel prices, the Kenya Power Lighting Company dealt Kenyans another hefty blow.


KPLC announced the increased prices by 15 percent shortly after EPRA announced an increase in petroleum prices as a result of the withdrawal of government subsidies.


The electricity provider in the country has factored in the increase in global fuel prices, inflation adjustments, and hard currencies against the Kenyan shilling as well as regulatory, hydropower, and rural electrification levies and taxes while hiking the prices.


Large-scale consumers and industries will have their power costs rise even higher since the pass-through costs total to almost more than a third of power bills.


For the end consumer the increase means that for a thousand shillings instead of getting 45.7 units of power, you shall now be getting 39.5 units.



The Government of Kenya in liaison with the International Monetary Fund has gotten a consensus to end the fuel subsidies that had been institutionalized by the Uhuru administration.


The fund gained influence Kenya’s economy after loaning the country 270.2 billion in exchange for reformed policies that include the withdrawal of government subsidies to increase revenue collection.


By ending the government subsidies, high production costs, increase in consumer goods prices and transportation costs are imminent.


President William Ruto noted that his government would discontinue the subsidies as they are not sustainable, are prone to abuse ,distort markets and create uncertainity,including artificial shortages of the very products being subsidized.


KPLC has increased the electricity prices by 15.7 percent therefore negating the price cuts that had been done by the Uhuru Kenyatta administration in January.Uhuru Kenyatta had announced a 30% reduction in the 2021 Jamhuri celebrations.


The government had aimed at cutting off the electricity bills by 30%.A move that was protested by the independent power producers (IPPs) who supply electricity to Kenya Power.


According to the law, electricity tariffs ought to be reviewed every three years.However recently the reviews have been on and off due to government interventions.The government has been trying to mitigate the inflationary effect on households as well as large-scale consumers.

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