President Kenyatta announces 15 per cent cut to electricity costs

President Kenyatta announces 15 per cent cut to electricity costs

President Uhuru Kenyatta during the Jamhuri Day celebrations on December 12, 2021. PHOTO | PSCU

  • Previously, during the Mashujaa Day celebrations, President Kenyatta announced his government's goal to cut electricity prices by at least 33 per cent before the end of the year on the back of various reforms.
  • According to President Kenyatta, cheaper electricity costs will now be delivered in two tranches, ending with another 15 per cent cut to the prices in the quarter ending in March 2022.
  • Subsequent to Sunday's announcement, EPRA is expected to publish new electricity tariffs to reflect the lower electricity costs.

President Uhuru Kenyatta has announced a 15 per cent cut to electricity costs this month as part of the government's goal of bringing down energy costs by Christmas.

Previously, during the Mashujaa Day celebrations, President Kenyatta announced his government's goal to cut electricity prices by at least 33 per cent before the end of the year on the back of various reforms.

According to President Kenyatta, cheaper electricity costs will now be delivered in two tranches, ending with another 15 per cent cut to the prices in the quarter ending in March 2022.

"I note that the Ministry of Energy has initiated engagements with independent power producers (IPPs) aimed at renegotiation of power purchase agreements (PPAs), so as to give better value for money for consumers," said President Kenyatta.

"I urge the power producers to demonstrate goodwill as we seek to make our energy sector a greater catalyst of our national development."

Subsequent to Sunday's announcement, the Energy and Petroleum Regulatory Authority (EPRA) is expected to publish new electricity tariffs to reflect the lower electricity costs.

Electricity costs remained on the rise in November driven primarily by high fuel costs and a weakened local currency.

The Ministry of Energy has already engaged independent power producers asking them to voluntarily join the negotiation table to review the cost they charge to Kenya Power for electricity purchases.

The purchase costs paid to the IPPs has been greatly attributed for the high cost of electricity as the independent producers seemingly 'overcharge' Kenya Power for electricity purchased.

Presently, a unit of electricity for the average domestic user (1 kWh) costs Ksh.25.33.

To hit the 15 per cent bull's eye this month, the cost will have to come down to Ksh.21.53 on consumers' December electricity bills.

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President Uhuru Kenyatta Jamhuri Day Electricity

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