This archive report was first published on 16 August 2021.
Power Fuel Cost Levy Hits Three-Year High ¶
On August 16, 2021, the Energy and Petroleum Regulatory Authority (Epra) announced a significant increase in the fuel cost charge for electricity in Kenya.
The fuel cost charge, which affects households and businesses, has risen to Sh3.77 per kilowatt hour (kWh), the highest in three years.
This increase, coupled with a rise in Value Added Tax (VAT), will result in a Sh0.14 increase in the cost of a unit of electricity, further burdening households and businesses already reeling from the economic impact of the Covid-19 pandemic.
According to Epra, the fuel cost charge for August 2021 has increased to Sh3.77 per kWh, up from Sh3.3 per unit last month.
For context, the fuel cost charge last hit similar highs in July 2018, when it stood at Sh4.60.
The rise in fuel cost charge, combined with the increase in VAT, will see the cost of electricity rise by Sh0.14 per unit, affecting households and businesses that are already struggling financially.
As the country continues to grapple with the economic impact of the Covid-19 pandemic, the increase in fuel cost charge is likely to exacerbate the situation, particularly for households and businesses that are already facing financial hardships.
