Kenyans are set to enjoy low token prices as the country readies to start importing electricity from Ethiopia.
After a two-week-trial phase, Kenya will add 200MW to national grid starting from November 21, 2022.
“We are carrying out pre-commissioning tests that will pave way for the injection of 200MW into the national grid,” a statement from ministry of energy official revealed.
Kenya has been experiencing low hydro electricity due to prolonged drought in the country, forcing Kenya Power and Lighting Company (KPLC) to rely on geothermal power as backup.
Geothermal power is expensive due to high cost of production a situation that has led KPLC to increase token prices to the detriment of many Kenyans.
The current importation deal was signed between KPLC and Ethiopian Electric Power (EEP) during former president Uhuru Kenyatta’s administration in July 2022.
“We will start commercial operations on November 1, 2022, upon joint testing and commissioning of the interconnector,” KPLC acting CEO Geoffrey Muli announced back then during signing of the deal.
“The agreed tariff is competitive and will see Kenyans enjoy power at a lower cost,” Muli added.
Most Kenyans are grappling with high cost of living and reduction of token prices will come as a huge relief.
The country's manufacturing sector largely depend on electricity and with the expected lower rates, production cost will subsequently drop, easing pressure on spiking cost of food.
The deal will also be a huge boost to EEP and the Ethiopian economy as Kenya becomes the third country to import electricity after Djibouti and Sudan.
Kenya will be paying approximately Ksh10 billion every year to import electricity from Ethiopia.
