Relief as Kenya Power reduces electricity cost

Business
By Sharon Wanga | Apr 15, 2024
Domestic consumers will now enjoy a 13.7 per cent reduction.

Kenyans will breathe ease for one month following an announcement by Kenya Power to reduce the cost of electricity.

In a statement on April 15, the company Managing Director Joseph Siror stated that the reduction results from the fall in prices of fuel which is a key component in generating electricity.

The MD also attributed the price decrease to the foreign exchange fluctuation that has led to the strengthening of Kenya Shillings against the dollar.

According to the announcement, domestic consumers will now enjoy a 13.7 per cent reduction as a result of a 37 per cent cumulative reduction in fuel cost charges and foreign exchange fluctuation.

"The fuel cost charges and foreign exchange fluctuation adjustment which comprises the key variables components of the electricity bill reduced by 37.3pc between March 2024 and April 2024 across all customer categories," stated Siror.

He explains further; "The fuel charges reduced from Sh.4.64in March 2024 to Sh.3.26in April and from a high of Sh.4.93 in January 2024. On the other hand, the forex adjustment charge reduced from Sh.3.68 in March 2024 to Sh.1.96in April and from a high of Sh.6.85 in January 2024."

He noted that the power-supplying company is optimistic that the prevailing macroeconomic environment that enables the dispatch of less thermal power will benefit consumers more.

Therefore, customers consuming less than 30 units per month while using 30 units of electricity will pay Sh. 629 in April 2024 compared to the 729 they paid in March.

Similarly, a customer consuming 60 units will pay Sh. 1,574 in April compared to the previous Sh.1,773 charged in March.

The reduction comes barely a day after the Energy and Petroleum Regulatory Authority(EPRA) reviewed fuel prices.

The review has now seen Super Petrolre tailing at Sh193.84, Diesel(Sh180.38 ), and Kerosene at Sh170.06 across the country.



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