Electricity cost to remain high despite heavy rains

By John Njiraini

The cost of electricity is expected to remain high despite the onset of short rains, as the water levels at the main holding dam in Masinga are still low.

Kenya Electricity Generating Company (KenGen) Operations Director Richard Nderitu said the water levels at Masinga Dam, the main reservoir of the Seven Folks cascade, is currently at 50 per cent and it could take more than a month to fill up.

"The dam is at 50 per cent so we will continue to use thermal for generation to manage the electricity supplies," he said.

He, however, noted that the country will continue to be prone to high electricity prices in the immediate term. KenGen, he said, is investing heavily in geothermal sources that will ultimately solve the problem.

In recent months, electricity generation from hydro sources has been scaled down to 29 per cent and generation from thermal increased to 57 per cent due to falling water levels at the seven folks, pushing electricity tariffs to unbearable levels.

Just over a week ago, Kenya Power increased the forex adjustment component on the electricity bill to Sh2.74 per kilowatt hour, while the fuel cost surcharge rose from Sh8.20 to Sh8.40.

Inflated bill

The move is expected to further exert pressure on manufacturers who have seen their electricity bill increase by close to 50 per cent since January.

According to the Kenya Association of Manufactures, the cost of electricity has increased from Sh10.75 per kilowatt-hour to Sh16 per kilowatt-hour over the period.

The manufacturing sector is the largest consumer of electricity in Kenya, using 60 per cent of all electricity generated.

Speaking during a tour that KenGen had organised for some 300 of its shareholders in its various installations on Wednesday, Nderitu revealed that the Government has provided KenGen with sovereign guarantee of Sh45.8 billion for development of 280 MW geothermal project in Olkaria.