This archive report was first published on 12 July 2021.
Kenya Revenue Authority (KRA) has given Kenya Power a 30-day ultimatum to clear taxes and storage fees for transformers imported seven years ago, or face public auction on August 12, 2021.
The auction notice, published in the Kenya Gazette on July 9, 2021, warns that the transformers will be sold if the goods are not cleared within the stipulated period.
Kenya Power is grappling with an ageing transmission network, which has been blamed for power outages and increasing system losses. In FY2020, the company recorded a loss after tax of KSh0.94 billion, despite a tax credit of KSh6.1 billion issued by the government.
Meanwhile, electricity costs are set to increase this month, following a 52% hike in the foreign exchange component of the power bill, which has shot up to KSh1.16 per unit of electricity, the highest level since July 2018.
