Kenya Power Announces 13.7% Drop In Electricity, Token Prices

Kenya Power has announced that Kenyan electricity consumers will enjoy a 13.7% reduction in power prices this month.

In a statement on Monday, April 15, the monopoly power firm revealed that the strengthening of the Kenyan shilling and reduction in the cost of fuel necessitated the drop in power prices.

"Electricity customers will enjoy up to a 13.7% reduction in the cost of power this month, following the strengthening of the Kenya Shilling and a reduction in the cost of fuel that is used to generate electricity.

"The fuel cost charge and foreign exchange fluctuation adjustment, which comprise the key variable components of the electricity bill, reduced by 37.3% between March 2024 and April 2024, across all customer categories, as gazetted by the Energy and Petroleum Regulatory Authority (EPRA)," stated Kenya Power in part.

Kenya Power Managing Director and CEO Joseph Siror addresses participants during the first Grid Conference at the Kenya School of Monetary Studies on June 8, 2023. /KENYA POWER

The utility firm added that the fuel cost charge was reduced from Ksh4.64 in March 2024 to Ksh3.26 in April 2024, and from a high of Ksh4.93 in January 2024.

On the other hand, the forex adjustment charge was reduced from Ksh3.68 in March 2024 to Ksh1.96 in April 2024 and from a high of Ksh6.85 in January 2024.

"We are happy to note that the reduction has given reprieve to our customers and we are optimistic that the prevailing macro-economic environment and the improved hydrology, which enables us to dispatch less thermal power, will sustain the benefit to our customers," said Kenya Power's Managing Director & CEO, Dr (Eng.) Joseph Siror.

A customer under the Domestic Customer 1 (DC1) tariff band (those consuming less than 30 units per month) using 30 units of electricity will pay Ksh629 in April 2024 compared to Ksh729 for similar units in March 2024, representing a 13.7% reduction.

Similarly, a customer under the Domestic Customer 2 (DC2) tariff (averaging 31-100 units per month) who consumes 60 units will pay Ksh1,574 in April 2024 compared to Ksh1,773 in March 2024 representing an 11.2% reduction.

Back in February, the Kenya Electricity Generating Company PLC (KenGen) Managing Director and Chief Executive Officer (CEO) Peter Njenga committed to ensuring that Kenyans enjoy cheaper electricity prices.

This is as KenGen announced in a statement on Monday, February 5 that it increased hydropower generation after the country’s main dams in the Seven Forks Cascade hit one of the highest water levels in the recent past.

The impressive performance on the hydropower side of the business was largely driven by Masinga Dam, which is Kenya's largest, maintaining near maximum water levels of 1,056 meters above sea level (mASL), over the space of three days.

A Kenya Power token meter. /FILE