Kenya Power announced plans to have some of its customer bases pay for their electricity bills in foreign currencies.
In its 2022 financial notice published on Tuesday, February 28, the power utility firm indicated that the move was targeting Kenyans who were earning salaries and making income in dollars and euros.
The company explained that the new mode of charging select customers was occasioned by the performance of the Kenyan shilling against the US dollar and other currencies.
"To mitigate against the impact of the fluctuation in foreign exchange rates that have continued to adversely affect the financial performance. We are pursuing several initiatives including allowing a section of our customers whose income is in foreign currency to settle their electricity bills in these currencies.
"We are confident that our continued focus on the key areas as highlighted will enable us to achieve our objectives and create value for our shareholders," read the notice in part.
According to the Central Bank of Kenya (CBK), the Kenyan shilling has weakened against the US dollar in recent months. However, it has stabilised in recent weeks.
CBK's exchange rate for the shilling against the dollar as of Tuesday, February 28, was at Ksh126 while the euro was put at Ksh133.
Nonetheless, the utility firm did not detail when the new mode of payment would begin or whether a framework on the same was ready.
The utility firm explained that these were some of the measures that would boost its financial performance given that it had posted a Ksh1 billion loss from July - December 2022.
"Finance costs increased to Ksh7.3 million from Ksh6.7 million resulting from a rise in unrealised foreign exchange loss arising from the revaluation of foreign-denominated loans as a result of the depreciation of the shilling against major currencies.
"The Company projects to improve its business performance in the second half of the financial year by retaining the unwavering focus on increasing electricity sales, enhancing system efficiency, and prudently managing its resources," Kenya Power stated.
Notably, if the move sails through, Kenya Power could join a number of real estate developers who are adopting the payment of rent in dollars owing to the dominance of the dollar compared to the shilling.
