Take advantage of low electricity tariffs

The government has finally embarked on a programme to lower the cost of production for many businesses by reducing electricity tariffs if these manufacturers consume power during the off-peak period.

Under this arrangement launched last week, the cost of electricity will be 30 per cent cheaper between 10pm and 6am than it is during the rest of the day. Not only will this make Kenyan firms more competitive against companies that bring goods to the country from low-tariff environments, more jobs can be created by businesses that significantly cut their cost of production.

For far too long, local manufacturers have complained that they cannot compete favourably against firms located in countries such as South Africa and Egypt because the cost of electricity in these countries is more than 50 per cent lower than it is in Kenya.

To benefit from the low power tariff structure, some Kenyan firms have transferred their manufacturing operations to these countries. 

This has now changed. There are now plans to pass these benefits to small and medium enterprises, with Kenya Power planning to install smart meters at the business premises of these companies, which would make the administration of these tariffs easier.

Business must take advantage of these incentives.