Kenya Power on Wednesday, February 7, granted Kenyans reprieve after it lowered token charges in the latest review on electricity prices.
Energy Principal Secretary Alex Wachira revealed that the cost of electricity for all categories would be reduced by Ksh3.44 per unit.
He attributed the drop to a decline in the foreign exchange adjustment rate from Ksh6.46 to Ksh3.22.
The forex adjustment is the forex charge deducted when purchasing tokens and is based on the variation of hard currencies against the Kenyan Shilling. Currently, a dollar is traded at Ksh160 against the green buck.
Prepaid users began enjoying the new rates on Thursday morning while postpaid users will pay less at the end of February.
A spot check by Kenyans.co.ke, established that one received more token units for the same amount purchased on February 8, 2024, as compared to January 11, 2024.
On Wednesday, Kenyans who purchased tokens worth Ksh250 received 8.77 units whereas last month in January, the same amount only accounted for 7.82 units.
In a breakdown, the change in token prices was occasioned by the sharp decline in forex adjustment charge from Ksh50.53 to Ksh28.22.
From the Ksh250 purchase, the Value Added Tax (VAT) increased from Ksh26.15 to Ksh29.07. The government charges a 16 per cent VAT on the pre-paid units on several components such as fuel energy costs, fixed charges, consumption, foreign adjustments, demand charges and inflation adjustments.
Interestingly, other factors such as the Energy and Petroleum Regulatory Authority (EPRA) charge increased to Ksh0.7 from Ksh0.62, while the fuel energy cost increased from Ksh33.85 to Ksh36.3.
The Water Resources Authority (WRA) charge, a fee deducted for energy purchased from hydropower plants, was reduced from Ksh0.14 to Ksh0.11.
The Rural Electrification Programme (REP), which is charged for the implementation of rural projects, also increased from Ksh6.48 to Ksh7.27.
Recently, Kenya Electricity Generating Company (KenGen) Chief Executive Officer Peter Njenga promised Kenyans cheaper electricity prices, citing a surplus supply of hydropower.
He noted that Masinga Dam had hit maximum levels of 1,056 meters above sea level and hence would go a long way in stabilising the electricity costs.
“We are happy to report that we are receiving very good inflows from the Mount Kenya and Aberdares catchment areas which has led to high water levels at our dams,” the CEO stated on Monday, February 5.
