NAIROBI, Kenya – The Energy and Petroleum Regulatory Authority (EPRA) has announced a significant increase in electricity bills.
The power bills are set to increase by approximately Sh3.50 per unit.
This adjustment comes as power generators factor in rising production costs, despite recent drops in fuel prices and a strengthening Kenyan shilling.
In a gazette notice, EPRA Director General Daniel Kiptoo stated, “Pursuant to clause 1 of Part III of the Schedule of Tariffs 2023, notice is given that all prices for electrical energy specified in Part II of the said schedule will be liable to a fuel energy cost charge of plus 359 Kenya cents per kWh for all meter readings to be taken in June 2024.”
The cost hike is attributed to several diesel plants, including Kipevu I and III, Rabai Diesel without steam turbine, Rabai Diesel with steam turbine, and Iberafrica Diesel—additional plant, all experiencing increased pricing.
This increase follows Kenya Power’s announcement in April of a reduction in power bills due to adjustments in fuel cost charges and foreign exchange fluctuations.
The reduction saw domestic customers consuming less than 30 units per month pay Sh629 in April, down from Sh729 in March 2024.
Similarly, those using 60 units saw their bills decrease to Sh1,574 from Sh1,773, marking an 11.2 percent reduction.
Meanwhile, the Energy Ministry is focusing on reducing system losses to provide customers with lower electricity bills.
Energy Cabinet Secretary Davis Chirchir emphasized the need for Kenya Power to cut system losses to an average of 20 percent in the short term.
Currently, losses reported by Kenya Power have remained above the allowed limit, with system losses hitting 23 percent in December last year, resulting in a loss of 1,578.9 Gigawatt-hours (GWh) between July and December.
EPRA’s benchmark is set at 18.5 percent. The losses stood at 23.49 percent in December 2022, up from 22.43 percent in the same period of 2021, and 25.21 percent the year before.
Despite this, Kenya performs relatively well, as system losses across Africa average between 20 to 40 percent.
System losses, the difference between total net generation and energy sales, are attributed to both technical inefficiencies and commercial factors such as power theft.
Chirchir asserted that the government is determined to enhance energy efficiency to reduce electricity costs further.
“As we cut losses, we are gearing towards lowering the cost of power because once we lower our distribution and transmission losses, that directly translates through our power bills and that is what energy efficiency is all about,” he noted
Kenya Power has devised a new Strategic Plan for 2023/24 – 2027/28, aimed at reducing system losses by identifying and rectifying affected areas.
According to CS Chirchir, the country requires $5.3 billion (Sh686.2 billion) to revamp power transmission lines and prevent frequent blackouts.
Doubling energy efficiency is expected to enhance energy security, reduce the expenditure of foreign currency reserves on energy imports, alleviate the strain on the national grid during peak times, and lower emission-related costs.
“By improving energy efficiency, we can significantly reduce electricity costs, improve energy security, and provide more reliable power to the nation,” Chirchir concluded.
