Kenyans are expected to pay 15% more for electricity after President William Ruto removed the multibillion subsidy put in place by the previous regime.
Energy and Petroleum Regulatory Authority (Epra) director-general Daniel Kiptoo said the 15 percent discount would not be extended beyond its expiry date of December 31, setting the stage for costly electricity and pressure on the sky-high inflation.
The subsidy, whose cost will hit Sh26 billion, was meant to ease the cost-of-living crisis and boost economic growth by making energy costs competitive compared with other African nations such as Ethiopia, South Africa, and Egypt.
Those consuming 50 units a month and who are subsidized by the State saw the cost drop to Sh796 in January from Sh945 in December, representing a 15.7 percent decline. But the 15 percent discount has since been wiped out by the increase in the foreign exchange and fuel adjustment surcharges on electricity bills.
EPRA said that electricity consumption stood at 1.11 billion units in August, just before the government eliminated the 15 per cent power reduction effected in January 2022.
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In September 2022, EPRA announced an increase in power rates by 15.7 per cent, erasing the 15 per cent decrease posted in January this year by the former President Uhuru Kenyatta administration, in what has handed consumers a twin blow in the wake of higher fuel prices.
Households and businesses consumed less electricity in the month of September, consumption dropping by 11.83 million kilowatt-hours (kWh) from August.
In October, the Fuel Cost Charge increased to Ksh 7.09 per unit of electricity consumed from Ksh 6.79 consumed in September, while the Foreign Exchange Fluctuation Adjustment stood at Ksh 1.48 per unit with the latter month at Ksh 1.37 per unit.
In the month of December, the Energy and Petroleum Regulatory Authority (Epra) raised the fuel cost charge (FCC) from Sh6.36 per unit to Sh7.12 per unit, and the foreign exchange rate fluctuation adjustment (Ferfa) from Sh1.41 to Sh2.07 per unit.