Cheap Electricity for Select Kenyans as New Naivasha Substation Nears Completion

Kenyan keys in token recharge into the token meter.
Kenyan keys in token recharge into the token meter.
Mathews Baloyi

Kenyans, especially investors, located around the Naivasha Special Economic Zone (SEZ) will soon enjoy the cheapest electricity after the completion of a nearby substation under construction. 

Energy Cabinet Secretary Davis Chirchir on Thursday issued an update on the project after conducting a routine inspection tour of the Kenya Power's Substation Naivasha Special Economic Zone.

The tour was aimed at monitoring the progress of power project infrastructures set to improve system stability.

He further indicated that construction works at the site were almost complete and that his Ministry was gearing up to commission the substation. 

Energy CS Davis Chirchir during a tour of Naivasha SEZ on Thursday, January 11, 2024.
Energy CS Davis Chirchir during a tour of Naivasha SEZ on Thursday, January 11, 2024.
Energy Ministry

"The Substation will provide quality and reliable power supply to the target customers within the Special Economic Zone in Naivasha and the Inland Container Depot, as well as reduce system losses by shortening the 11kV feeders within the target load centres," read a statement in part.

In April, the Energy and Petroleum Regulatory Authority (EPRA) set a uniform tax rate of just Ksh10 per kilowatt for special economic zones (SEZs).

Currently, the rate is the lowest per unit of power purchased by customers across the country. Naivasha SEZ is one of only 15 others enjoying the lowest power purchase.

According to the Ministry, the rates were revised downwards to shore up investor interest in putting up establishments in Kenya.

Naivasha SEZ, in particular, occupies 1,000 acres and was developed by the Kenya Government as a public Special Economic Zone as part of Kenya's industrialisation agenda.

It contains an Inland Container depot, a Railway Marshalling Yard, a logistics zone, and a public utility area with a supporting road network.

Earlier, reported that Kenya Power had increased token charges as part of its review of the forex adjustment charge.

The charge, which is the forex charge deducted when buying tokens based on the variation of hard currencies against the Kenyan Shilling, rose from Ksh28.11 to Ksh50.53.

An image of someone inserting tokens on their gadgets.
A photo of someone inserting KPLC tokens on their gadgets.