Why Ruto's Plan to Lower Electricity Cost Faces Hurdles - Experts

  • Kenya Power staff at work
    Kenya Power staff at work.
    File
  • A section of stakeholders and experts in the energy sector faulted President William Ruto on his plan to lower electricity tariffs in the next three months.

    Led by the Electricity Consumers Society of Kenya (ELCOS), the stakeholders argued that the model being touted by Ruto's administration will fail to make a much-needed change, especially on the cost of tokens.

    Speaking on Tuesday, January 3, ELCOS Executive Director Isaac Ndereva argued that Ruto sidelined the society in the ongoing talks aimed at lowering the cost of electricity.

    Ndereva insisted that the Head of State should have invited them to the 4-day retreat at the Sagana State Lodge in Nyeri county.

    An image of someone inserting tokens on their gadgets.
    An image of someone inserting KPLC tokens on their gadgets.
    File

    "I was not called to explain what I normally say regarding electricity in the country. I also did not see those who are going to advise him on matters of power," Ndereva stated during an interview on Spice FM radio.

    However, the executive director asked Ruto's administration to address forex, fuel costs and inflation costs which he claimed keep changing hence surgingĀ the electricity cost in the country.

    "In fact, I don't mind about Water Resources Management Authority (WARMA), Energy Petroleum and Regulatory Authority (EPRA), and REP Levy (the levy on the cost of the units of power consumed by a customer) charges because they are normally constant and in case of any changes they can easily be tracked," Ndereva explained.

    He noted that Kenya Power adjusts electricity tariffs after every three years. During the review, the utility firm determines the cost of electricity.

    However, ELCOS Executive Director castigated the current regime arguing that electricity costs are set to rise in the latest review due to the government's decision to withdraw the subsidy programme.

    EPRA director-general Daniel Kiptoo stated that the 15 per cent discount would not be extended beyond its expiry date of December 31, setting the stage for costly electricity and pressure on the sky-high inflation.

    Despite withdrawing the subsidy programme, the Head of State vowed to lower the electricity tariff in the next three months.

    The government, he observed, will prioritise low-income earners and manufacturers in the tariff review process.

    "In three months, we will have public consultation to ensure that we have tariffs that are affordable to those at the bottom of the economic pyramid and our manufacturers," he added.

    Kenya Power staff at work
    Kenya Power staff at work.
    File