Starting next week, electricity prices in Kenya will increase by up to 63%, following the approval of higher tariffs by the Energy and Petroleum Regulatory Authority (EPRA).
The price increase is expected to help Kenya Power raise money to fund the upgrade of its ageing distribution systems. This is the first review of power tariffs since 2018, and it will see base power prices rise to Sh12.22 per unit from Sh10 for those consuming below 30 units, a 22.2% increase.
For those using between 30-100 units, the cost will increase from Sh10 to Sh16.3, a 63% increase, effective April. Consumers using more than 100 units of electricity will pay Sh20.97 per unit, up from Sh15.8 currently, a 32% increase.
EPRA has reduced the Lifeline Tariff band from 100-kilowatt hour (kWh) per month to 30kWh to cushion and address the needs of low-income households in society. However, these consumers will be cross-subsidised by other consumer categories to protect the vulnerable members of society. The new tariffs are slightly lower than what Kenya Power had submitted for review and approval in October.
The review by EPRA will have a positive impact on various customer categories, with the street lighting tariff bracket set for the greatest cost reduction of Sh1.88kWh by 2024/25 compared to the current rates. Commercial and industrial consumers will see on average a reduction of Sh1.15 per kWh, which will help spur economic activities of the manufacturing industries and in turn lower the cost of goods.
Domestic lifeline customers will realise a reduction of 4% in the end-user bills, while the small commercial customer category will realise a reduction of 4% in their end-user bills.
However, domestic ordinary 1 and small commercial 2 customer categories consuming between 30-100 units will see an increase of 19% in their end-user bills. For those in the domestic ordinary 2 category who consume above 100 units and small commercial 3 customer category, those consuming above 100 units in a month will have an increase of 14% and 11% in their end-user bills.
EPRA said the proposed tariffs will ensure Kenya Power meets its power purchase and financial obligations and safeguard the financial sustainability of the sector. It will also ensure improved service delivery by scaling up refurbishment and upgrade of the transmission and distribution system
