Kalonzo Furious Over Kenya Power Increasing Token Prices

Wiper Party Leader, Kalonzo Musyoka has been left infuriated after Kenya Power increased its token charges following its latest review on electricity costs.

Kenya Power, operating as KPLC in its ticker, had raised the token prices after the Energy and Petroleum Regulatory Authority (EPRA) raised the energy charge by 8.7 per cent to Ksh4.33 per unit. Initially, the regulator charged Ksh3.98 per unit.

Fuel Energy Charge is the added cost or rebate to the consumers due to fluctuations in world prices and the quantity of oil consumed by electricity generation.

"The fuel cost charge lags one month behind the actual price of the fuel. Kenya Power collects this money and all of it is passed on directly to electricity generation companies, who in turn pay fuel suppliers," explains Kenya Power on its website.

EPRA also increased the foreign exchange rate fluctuation adjustment charge by 100.7 per cent to a record-high of Ksh6.46 per unit up from Ksh3.71 per unit.

The forex adjustment is the forex charge deducted when buying tokens. It is based on the variation of hard currencies against the Kenyan Shilling.

In the past weeks, the dollar has been toppling the Kenyan Shilling with the currency currently trading at an average of Ksh159.

The Value Added Tax (VAT) was also reduced in computing the new token values, given that Kenya Power charges a 16 per cent VAT on the pre-paid token units on the components such as fixed charges, consumption, fuel cost charges, forex adjustments, demand charges and inflation adjustments.

As a result, someone buying tokens worth Ksh250 for example is getting 7.82 units down from 8.87 units the previous week.

In response, Kalonzo took to X to call out the Kenya Kwanza government led by President William Ruto for being unable to deal with the matter of the cost of living to its conclusion.

"The 16% increase in tokens by Kenya Power is the latest unacceptable burden on tired, hungry and angry Kenyans.

"This is a clear example of the Kenya Kwanza regime's inability to address the cost of living. They want to leave us in the dark, but I am telling them, know kuna nuru gizani (there is light in the darkness)," he wrote.

Notably, this increase in token prices comes contrary to President Ruto's directive to the Ministry of Energy to increase the distribution of Hydro-generated power which was to lead to a reduction in electricity prices.

"Cabinet directed the Ministry of Energy & Petroleum, in consultation with all agencies within the sector, to give priority to maximum production, uptake and distribution of hydro-generated power.

"Cabinet also directed the Ministry of Energy to pass the benefit of lower electricity tariffs to the public in a manner that promotes the increased use of hydro-generated power, which has presently increased to 20 per cent while diesel has gone down from 15% to 10%;" read a Cabinet despatch in part on November 27, 2023.

The CS then announced on December 11, 2023, that more power would be dispatched which would be cheaper owing to the rains which filled up the dams from Kiambere to Masinga, a matter that would lead to a “sustained drop in bills going forward mainly due to a fall in the pass-through costs, in this case, the fuel cost charge."