Kenya Power effects 15% power reduction
Kenya Power has effected the 15 percent reduction of power tarrif in the country.
The changes will run for a 12-month period starting January 2022 to December 2022.
“The tariff reduction is a fulfillment of the commitment made by President Kenyatta to the nation on Jamhuri day 2021 that the first tranche of 15% reduction in the cost of power will be reflected in bills covering the end year of 2021,” said the Ministry of Energy in a statement.
This means a great deal to the majority of Kenyan households who have been struggling on the back of the high cost of living due to economic headwinds caused by the coronavirus pandemic.
The ministry said it would effect the remaining 15 percent reduction in powering tariff before the end of the first quarter of 2022.
“We will ensure efficiency and optimisation that improves our global competitiveness, drives job creation and powers economic growth.”
In a week through January 2022, Kenyans experienced a spike in the cost of energy.
Those purchasing power at a cost of Ksh.200 for example, received 10.58 units down from 10.85 they received in December last year, denoting a 2.48 percent increase in the cost of energy.
President Uhuru Kenyatta had directed the power utility to lower the cost of energy by December 31, 2021.
“The consequence of the proposed interventions is that a consumer who previously spent Ksh.500 per month on electricity shall by 31st December 2021 pay Ksh.330 per month. This cost reduction will be achieved through the reduction of the consumer tariffs from an average of KES 24 per kilowatt-hour to Ksh.16 per kilowatt-hour which is about two-thirds of the current tariff,” said State House Spokesperson Kanze Dena.
The partial reduction has been achieved through the reduction of the consumer tariffs from an average of Ksh.24 per kilowatt-hour to Ksh.16.
In September last year, the President received the Report of the Presidential Taskforce on Review of Power Purchase Agreements which was constituted to respond to calls from a wide cross-section of Kenyans to address concerns about the high cost of electricity for both individual consumers and enterprises.
It was established that there was a vast differential between KenGen and Independent Power Producer (IPP) tariffs and electricity dispatch allocations.
The move comes against the backdrop of the ongoing reforms within the power utility, which has recently come under fire over the mismanagemet of public funds.
Power consumers, businesses and individual Kenyans have cried foul over the high cost of power supplied by Kenya Power compared to the cost in the neighboring countries.
Energy Cabinet Secretary Monica Juma raised an alarm over the payment of tariffs to IPPs, their procurement process and the nature of their contractual terms and their style of operation.
This has attracted the government’s attention to form a front with the power utility to discuss with respective IPPs on the concerns seeking to renegotiate or terminate Power Purchase Agreements (PPAs) found to have material breaches.