This archive report was first published on 22 September 2021.
Kenya Power has withdrawn its application to increase electricity bills by up to 20%, a move that comes as the company shifts its focus to lowering costs and recovering unpaid bills worth over KSh27 billion.
According to Energy Cabinet Secretary Charles Keter, the firm had submitted the application to the Energy and Petroleum Regulatory Authority (EPRA) in 2019, but it has since been recalled.
The proposed tariff increase would have seen the consumption charge for usage of less than 100 kilowatts per month rise to KSh12.40 per unit from the current KSh10, while the charge for consuming above 100 units would have increased to KSh19.53 a unit from the current KSh15.80.
However, the new directors appointed last year have opted for a different approach, prioritizing cost cutting, sales growth, and reduction of power bought from generators that does not reach home and businesses, also known as system losses, over tariff increases.
As a result, power bills have hit a 38-month high in August, following an increase in the fuel surcharge levied on electricity tariffs, adding to the pain of consumers already struggling with high costs of petrol, diesel, kerosene, and cooking gas.
Meanwhile, Kenya Power has received a $1 million grant from the Sustainable Energy Fund for Africa (SEFA) to create a Super Energy Service Company (ESCO), which will develop and implement energy efficiency projects for both the public and private sectors.
