Kenya Announces Reduction in Electricity Prices Due to Stronger Shilling and Lower Fuel Costs
NAIROBI — Electricity costs in Kenya will decrease by up to 13.7 percent this month, benefitting consumers across various sectors due to the strengthening of the Kenyan Shilling and a significant drop in fuel expenses, essential for power generation.
According to Kenya News Agency, the key components of electricity pricing—fuel cost charge and foreign exchange fluctuation adjustment—have seen a substantial decrease of 37.3 percent from March 2024 to April 2024. This reduction has been applied uniformly across all customer categories. Kenya Power noted that the fuel cost charge fell from Sh4.64 in March 2024 to Sh3.26 in April 2024, and the forex adjustment charge was reduced from Sh3.68 to Sh1.96 in the same period.
Dr. Joseph Siror, Managing Director and CEO of Kenya Power, expressed optimism about the continued economic benefits for consumers, attributing them to favorable macro-economic conditions and improved hydrology, which has reduced the need for expensive thermal power generation. He highlighted the significant relief these reductions provide to customers.
For specific customer categories, the savings are substantial. Customers under the Domestic Customer 1 (DC1) tariff, consuming less than 30 units per month, will see their bills for 30 units decrease from Sh729 in March 2024 to Sh629 in April 2024. Those under the Domestic Customer 2 (DC2) tariff, using between 31-100 units, will pay Sh1,574 for 60 units, down from Sh1,773. Moreover, customers consuming more than 100 units per month under the Domestic Customer 3 (DC3) tariff will see their bill for 120 units drop from Sh4,127 to Sh3,728.
This price reduction aligns with Kenya Power’s strategic focus on fostering economic development by providing affordable and reliable electricity. As of December 2023, Kenya Power serviced over 9.5 million accounts and enabled electricity access to over 76 percent of the Kenyan population, reflecting the company’s significant role in the nation’s socio-economic growth.