Uhuru orders Kenya power to cut down 33pc on bills

President Uhuru  Kenyatta has announced that the cost of power is to drop by 33 per cent starting next year as Kenya plans to do away with expensive Independent Power Producers.

This comes after the head of state received a report on a task force that has been reviewing Power Purchase Agreements between Kenya Power and Independent Power Producers

From the head of state office, doing away with expensive power producers will see a unit of electricity go for 16 shillings from 24 shillings starting 31 December  which is two-thirds of the current tariff.

This means that cut in electricity prices will benefit homes that consume more than 100 units monthly, mainly middle class homes plugged to gadgets like cookers, water heaters and fridges, who on average pay the Sh24 a unit.

Under the current billing structure, homes in rural Kenya and low-income urban neighbourhoods, which consume less than 100 kWh monthly, enjoy a subsidy of Sh5.72 per unit.

The 33 percent cut implies that all homes will enjoy the subsidy irrespective of their monthly consumption levels.

A State House statement, announcing the handing in of the report of a taskforce appointed to review power purchase agreements, promised that the lower tariff will be implemented before end of December.

“The President has also examined and welcomed the recommendations of the Taskforce that establish a path towards the reduction of the cost of electricity by over 33 percent within four months,” said the statement.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.