× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

Manufacturers laud 15pc cut in electricity cost

By Graham Kajilwa | Jan 12th 2022 | 2 min read
By Graham Kajilwa | January 12th 2022

Kenya Power workers fix a transformer at Ndimaini Village in Karatina, Nyeri on December 28, 2020. [Kibata Kihu, Standard]

Manufacturers have welcomed the 15 per cent reduction in power tariffs gazetted last week, describing it as a significant milestone.

Kenya Association of Manufacturers (KAM) said in a statement that members will enjoy a cost reduction of between Sh2.67 and Sh3.64 per unit of electricity depending on their respective tariffs and consumption levels.

The cost of power will further reduce for industries that meet the Time of Use Tariff threshold as gazetted. “This is a significant milestone towards realising our long-standing efforts to reduce power costs, boost local manufacturing and investments in the sector,” said KAM Chair Mucai Kunyiha in a statement.

Mr Mucai said manufacturers have in the past raised concerns over the high price of electricity, which has had a negative impact on the cost of production.

Mr Kunyiha said the reduction is timely, especially with the effects of the Covid-19 pandemic still lingering in some sectors.

President Uhuru Kenyatta on December 12, 2021, announced that the cost of power would drop by 30 per cent, with the first phase of 15 per cent expected to be effected by end of that month.

Last week, the Energy Ministry announced a 15 per cent cut on tariffs starting from the December bills. Another 15 per cent reduction is expected in March this year.

The changes were informed by a presidential inquiry into power purchase agreements (PPAs).

Kunyiha attributed high electricity charges to expensive PPAs, high cost of fuel, multiple taxes and levies, fuel cost adjustment and inefficiency in the system.


Share this story
Central Bank fights off order stopping liquidation of bank
Central Bank of Kenya (CBK) has faulted a High Court order temporarily stopping the liquidation of Imperial Bank,
Hard questions about the on and off power outage
Hours of darkness and a wishy-washy explanation. That is what Kenyans were fed yesterday following a nation-wide power outage.