No relief as Kenyans face higher electricity bills this month


A Kenya power technician fixes a transformer
A Kenya power technician fixes a transformer. PHOTO | FILE

In Summary

  • While the fuel cost charge will ease to Ksh.3.30 per unit of power consumed this month, the foreign exchange fluctuation adjustment tariff is set to shot up to Ksh.1.20 per unit from 77 cents in June.
  • The water resource management authority levy is meanwhile set to hit Ksh.1.93 from nearly zero previously.
  • Besides the prevailing high food and fuel costs, Kenyans were hit with new taxes from July 1 including a new 16 per cent VAT charge on the supply of LPG gas and a 20 per cent excise duty on voice calls and data purchases.

There will be no relief to monthly electricity bills at the end of July after an upward adjustments to tariffs on Friday by the Energy and Petroleum Regulatory Authority (EPRA).

While the fuel cost charge will ease to Ksh.3.30 per unit of power consumed this month, the foreign exchange fluctuation adjustment tariff is set to shot up to Ksh.1.20 per unit from 77 cents in June.

The water resource management authority levy is meanwhile set to hit Ksh.1.93 from nearly zero previously.

The greater foreign exchange fluctuation tariff stems from a marginal reversal in gains by the local currency and references power purchases paid for in US dollars.

Greater overall electricity costs are expected to compound on Kenyans who are already seething from an exorbitant cost of living in recent weeks.

Subsequently, July inflation is set to extend further from the 15-month high rate of 6.3 per cent.

Besides the prevailing high food and fuel costs, Kenyans were hit with new taxes from July 1 including a new 16 per cent VAT charge on the supply of LPG gas and a 20 per cent excise duty on voice calls and data purchases.

The government is already facing backlash for the high taxes facing Kenyans with a resident- Dindi Okumu for instance filing a petition at the High Court opposing the new LPG tax.

Other stakeholders have also expressed their anger over the runaway cost of living with the Consumer Grassroots Association (CGA) for instance mulling a similar court procedure.

On Wednesday next week, Kenyans can also widely expect increases in cost at the pump as global oil prices stagnate at high levels.

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