Kenyans set for higher June electricity bills


Kenyans set for higher June electricity bills

In Summary

  • The fuel cost charge sits at a high Ksh.3.63 per kilowatt hour (kWh) for power consumed, the highest level since July 2019 in comparison to Ksh.2.92 last month.
  • This is despite diesel costs, the petroleum commodity from which electricity is generated through thermal sources remaining unchanged since April.
  • A single unit of power for domestic customers is now expected to retail at about Ksh.24.57 at the end of this month from a lower Ksh.23.76 in May, the highest rate since March this year.

Kenyans face steeper electricity bills this month after upward adjustments to ‘non-constant’ tariffs by the Energy and Petroleum Regulatory Authority (EPRA).

The higher bills are attributable to a greater fuel cost charge (FCC) and foreign exchange fluctuation (FERFA) adjustments by EPRA on Friday.

However, the higher tariffs are ironic given the flat movement in both fuel costs and the Kenyan shilling valuation across recent months.

For instance, the fuel cost charge sits at a high Ksh.3.63 per kilowatt hour (kWh) for power consumed, the highest level since July 2019 in comparison to Ksh.2.92 last month.

This is despite diesel costs, the petroleum commodity from which electricity is generated through thermal sources remaining unchanged since April.

Meanwhile, the foreign exchange tariff stands at a higher 77 cents from 67 cents in May despite a largely unchanged foreign exchange rate in the period.

A single unit of power for domestic customers is now expected to retail at about Ksh.24.57 at the end of this month from a lower Ksh.23.76 in May, the highest rate since March this year.

The prospect of higher electricity bills is likely to push up the cost of living much further with pressure of the energy index.

May inflation at 5.87 per cent already ties up to the highest cost of living across the past one year.

EPRA views the adjustable tariffs on a monthly basis to reflect changes to the moving parts of the electricity pricing regime.

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Story By Kepha Muiruri
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