This archive report was first published on 10 May 2020.
Published on May 10, 2020, Energy Cabinet Secretary Charles Keter has stated that Kenyans should not expect 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. Mr Keter attributed this to the fact that manufacturers will not reduce their prices, even if electricity costs decrease.
“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, pump prices are easily regulated by the Energy and Petroleum Regulatory Authority (EPRA). However, he noted that 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 also weighed in, stating that fuel is a small component in setting electricity tariffs. 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.
Senator Ephraim Maina (Nyeri) had sought to know if electricity tariffs have gone down given the increase of rainfall across the country. The senators are now mulling a re-look at the Price Control (Essential) Goods Act to tame rogue traders from unduly benefiting from customers yet cost of production has dropped.
