This archive report was first published on 11 January 2022.
On 7th January 2022, the Kenyan government gazetted a 15% reduction in power tariffs, a move expected to benefit manufacturers.
The reduction, which ranges from Ksh2.67 to Ksh3.64 per unit of electricity, depends on the respective tariff and consumption levels of each manufacturer.
Kenya Association of Manufacturers (KAM) welcomed the move, hailing it as a significant milestone towards reducing power costs and boosting local manufacturing.
According to KAM Chairman Mucai Kunyiha, achieving sustainable and stable policies on power cost, availability, and reliability is crucial for economic growth.
The association has been advocating for reduced power costs, citing factors such as expensive Purchase Power Agreements (PPAs), high fuel costs, and multiple taxes and levies imposed on electricity bills.
With the reduction, KAM is urging the government to implement the second phase of the 15% reduction in power tariffs, as announced by President Uhuru Kenyatta during last year's Jamhuri Day celebrations.
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