This archive report was first published on 10 May 2020.
Energy Cabinet Secretary Charles Keter has dismissed hopes that Kenyans will enjoy cheaper commodities despite the drop in fuel prices and lower electricity tariffs.
Although electricity tariffs have been dropping since July 2019, prices of commodities have remained the same and in some cases increased.
Speaking to the Senate Energy Committee, Keter attributed the lack of price reduction to the liberalised economy, stating that it is not easy to lower prices.
“Even if today electricity came down, manufacturers will not reduce their prices. We have been arguing with the Ministry of Industrialisation on how prices can be lowered. But this is a liberalised economy, it is not easy,” Keter said.
According to Keter, the Energy and Petroleum Regulatory Authority (EPRA) regulates pump prices, but the Fuel Energy Cost (FEC) charged on consumers has come down from Sh5 to Sh2.5 and is reflected in monthly bills.
Principal Secretary Andrew Kamau added that fuel is a small component in setting electricity tariffs, and the applicable FEC is a factor of the amount of energy generated from thermal power plants and the price of fuel delivered to the power plants.
