How strengthening of the shilling with affect electricity and fuel prices; CBK
CBK Governor Kamau Thugge projects drop in electricity prices over the strengthening of the shilling
CBK Governor Kamau Thugge projects drop in electricity prices over the strengthening of the shilling.
Speaking during the Monetary Policy Committee (MPC) meeting on Thursday, March 4, Thugge explained that electricity prices usually factor in the exchange rate.
The Central Bank of Kenya (CBK) Governor added that the recent drop in the exchange rate would therefore see Kenyans enjoy cheaper electricity prices going forward.
“When the shilling appreciates we should expect to see the electricity prices come down,” he stated.
On the other hand, he added that the appreciation of the shilling would also have an impact on the fuel prices which are reviewed monthly by the Energy Petroleum and Regulatory Authority (EPRA).
Thugge noted that the expectation was for the pump prices to drop. However, he also acknowledged that global fuel prices have risen recently.
ODM announces mass job opportunities for grassroots elections; How to apply
Raila condemns attack on Omtatah rural home
Gov Natembeya reveals he ignored early warning before clashing with Speaker Wetang’ula
Russia breaks silence over Kenyans injured during drone attack
Popular Comedian Walter Nyambane fired from government job with immediate effect
Ruto directs changes in taxation for Kenyans
Nonetheless, he asserted that the gains made by the Shilling would mitigate any potential increase. Global fuel prices have been increasing owing to the current limited supply in the market amidst increasing demand.
Therefore, if the pump prices do not reduce they will likely remain at the current prices.
“We should see that upward trend (global prices) mitigated by the appreciation of the exchange rate alongside the decline in import inflation.
“The appreciation of the shilling will see a positive impact on inflation going forward,” he stated.
Currently, Super Petrol, Diesel and Kerosene are retailing at Ksh199.15, Ksh190.38 and Ksh188.74 respectively.
Also read,
Gov Simba Arati responds to those questioning his academic credentials
Shock as two missing children found dead and bodies stuffed in a bag
Government issues new directive on placement of grade 9 students
Omtatah breaks silence after goons raid his rural home
Man attacks his mother before committing suicide
National Council of Churches of Kenya calls for the resignation of THREE Ruto CSs
Follow us
