Relief for Kenyans as Kenya Power (KPLC) lowers token prices in the latest review on electricity costs.
Kenya Power, in its recent review of energy tariffs, reduced token charges on, giving Kenyans a break.
According to Energy Principal Secretary Alex Wachira, there will be a Ksh3.44 per unit decrease in the cost of energy for all categories.
The decrease in the foreign exchange adjustment rate from Ksh6.46 to Ksh3.22, he said, was the cause of the downturn.
The forex adjustment, which is dependent on the fluctuation of hard currencies versus the Kenyan Shilling, is the forex fee subtracted from the token purchase price. The current exchange rate between a dollar and the green buck is Ksh 160.
Prepaid users began enjoying the new rates on Thursday morning while postpaid users will pay less at the end of February.
On Wednesday, Kenyans who purchased tokens worth Ksh250 received 8.77 units whereas last month in January, the same amount only accounted for 7.82 units.
In a breakdown, the change in token prices was occasioned by the sharp decline in forex adjustment charge from Ksh50.53 to Ksh28.22.
From the Ksh250 purchase, the Value Added Tax (VAT) increased from Ksh26.15 to Ksh29.07. The government charges a 16 per cent VAT on the pre-paid units on several components such as fuel energy costs, fixed charges, consumption, foreign adjustments, demand charges and inflation adjustments.
However, other factors such as the Energy and Petroleum Regulatory Authority (EPRA) charge increased to Ksh0.7 from Ksh0.62, while the fuel energy cost increased from Ksh33.85 to Ksh36.3.
The Water Resources Authority (WRA) charge, a fee deducted for energy purchased from hydropower plants, was reduced from Ksh0.14 to Ksh0.11.
The Rural Electrification Programme (REP), which is charged for the implementation of rural projects, also increased from Ksh6.48 to Ksh7.27.
Recently, Kenya Electricity Generating Company (KenGen) Chief Executive Officer Peter Njenga promised Kenyans cheaper electricity prices, citing a surplus supply of hydropower.
He noted that Masinga Dam had hit maximum levels of 1,056 meters above sea level and hence would go a long way in stabilising the electricity costs.
“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.