This archive report was first published on 13 July 2021.
As Kenyans struggle to recover from the economic impacts of the COVID-19 pandemic, the Energy and Petroleum Regulatory Authority (EPRA) has announced a significant increase in the cost of electricity, effective July 2021.
The forex exchange component on the power bill has been increased to KSh1.16 per unit, marking the highest charge in three years since July 2018, when consumers paid KSh1.22.
This new rate per kilowatt-hour represents a 52% increase from the previous rate of 77 cents in June.
According to EPRA, the forex adjustment is done monthly to cushion consumers from any volatility of the Kenya Shilling against the US dollar.
However, the latest adjustment is unusual, as the Kenya Shilling has been strengthening against other currencies, including the greenback.
As a result, the increased cost of electricity is likely to strain household budgets, which are still recovering from the pandemic's economic effects.
