President William Ruto has announced the introduction of special electricity tariffs aimed at improving the manufacturing industry in the country.
Speaking during the tour of the Athi River Economic Zone on Tuesday, March 23, Ruto announced that manufacturers operating at night will be getting their power at 50 per cent of the normal rate.
According to Ruto, the new directive is aimed at encouraging manufacturers to work during the off-peak hours when Kenyans generally are asleep yet power is still being produced.
Consequently, he noted that the move would open more opportunities for jobs as companies will want to introduce night shifts.
"I have already announced today, that for use to help our investors, those who work at night will have their power bills charged at 50 per cent.
"This will ensure that we get night shifts and create opportunities for Kenyans," he stated.
The new tariff will be taking effect from the beginning of May 2024.
"We've done away with the requirement that one must use power to full capacity during day time to benefit from reduction at night," he added.
Currently, Kenya Power has been applying subsidised tariffs for companies operating at night. The Time of Use (TOU) are usually applied from 10 pm to 6 am on weekdays.
The tariffs also apply for companies during the whole day on Sundays and on public holidays.
According to a report by the Energy Petroleum and Regulatory Authority (EPRA), companies saved close to Ksh900 million between July to December 2023 owing to the ToU.
"The TOU beneficiaries cumulatively saved Ksh. 947.3 million during the review period. The savings achieved in this period increased by Ksh. 398.3 million compared to the first half of the year," read the report in part.
