Relief for Kenyans as KPLC Lowers Electricity Prices
On Wednesday, February 7, Kenya Power provided relief to Kenyan citizens by reducing token charges in the most recent assessment of electricity prices.
Energy Principal Secretary Alex Wachira announced a decrease of Ksh3.44 per unit in the electricity cost across all categories.
He credited the decrease to a reduction in the foreign exchange adjustment rate, which fell from Ksh6.46 to Ksh3.22.
The forex adjustment refers to the deduction made for forex charges during token purchases, determined by the fluctuations in major currencies compared to the Kenyan Shilling. Presently, the exchange rate for the US dollar stands at Ksh160.
Prepaid customers started benefiting from the updated rates on Thursday morning, whereas postpaid users will experience reduced charges by the end of February.
Gossipa2z conducted a random examination revealing that on February 8, 2024, one obtained a greater number of token units for an equivalent purchase compared to January 11, 2024.
This Wednesday, individuals in Kenya who bought tokens amounting to Ksh250 obtained 8.77 units, whereas, in January of last month, the identical sum only yielded 7.82 units.
During a market downturn, the shift in token values resulted from a significant decrease in the foreign exchange adjustment fee, dropping from Ksh50.53 to Ksh28.22.
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The Value Added Tax (VAT) on the Ksh250 transaction rose from Ksh26.15 to Ksh29.07. The government applies a 16% VAT on various elements of pre-paid units, including fuel energy costs, fixed charges, consumption, foreign adjustments, demand charges, and inflation adjustments.
Notably, there was a rise in the Energy and Petroleum Regulatory Authority (EPRA) charge, which went up from Ksh0.62 to Ksh0.7. Additionally, the fuel energy cost saw an increase from Ksh33.85 to Ksh36.3.
The fee imposed by the Water Resources Authority (WRA) for the energy acquired from hydropower plants has been decreased from Ksh0.14 to Ksh0.11.
The Rural Electrification Programme (REP), responsible for carrying out rural projects, experienced a rise from Ksh6.48 to Ksh7.27.
Lately, the CEO of Kenya Electricity Generating Company (KenGen), Peter Njenga, assured the public of reduced electricity costs in Kenya, attributing it to an excess supply of hydropower.
He observed that the water level in Masinga Dam had reached its peak at 1,056 meters above sea level. This achievement is expected to significantly contribute to stabilizing the costs associated with electricity production.
“We are happy to report that we are receiving very good inflows from the Mount Kenya and Aberdares catchment areas which has led to high water levels at our dams,” the CEO stated on Monday, February 5.
Relief for Kenyans as KPLC Lowers Electricity Prices