Kenya: Electricity Costs Fall By Sh0.27 Per kWh in June - CS Wandayi

Lead

Kenya's electricity costs fell by Sh0.27 per kilowatt-hour (kWh) in June, according to Energy and Petroleum Cabinet Secretary Opiyo Wandayi, offering some relief to households and businesses facing high operating expenses. In a separate development, the government has withdrawn a retail electricity tariff review application that had been submitted by the Kenya Power and Lighting Company (KPLC), ensuring current rates remain in force.

Coverage Comparison

Reporting on the June cost reduction comes from a single source, which detailed the Cabinet Secretary's announcement following a meeting with manufacturing sector representatives. The same source also reported that Wandayi attributed the decline to a drop in the Foreign Exchange Adjustment component, lower Fuel Energy Costs (FEC), and increased electricity generation from hydropower plants.

In contrast, the withdrawal of the tariff review application was covered by multiple sources, all citing statements from the Ministry of Energy and Petroleum and Energy Cabinet Secretary Opiyo Wandayi. These reports consistently noted that the decision aims to protect consumers and enterprises from higher energy costs while supporting a sustainable energy sector.

Key Claims

• Electricity cost reduction: According to Energy CS Opiyo Wandayi, as reported by one outlet, electricity costs declined by Sh0.27 per kWh in June. The reduction is attributed to lower Foreign Exchange Adjustment and Fuel Energy Costs, as well as increased hydropower generation.

• Tariff review withdrawal: Multiple sources report that the Ministry of Energy and Petroleum withdrew a retail electricity tariff review application submitted by KPLC on March 31. The decision, announced in a press statement by CS Wandayi, followed internal government consultations and stakeholder engagements.

• Current tariffs remain: The withdrawal means existing retail electricity tariffs will stay in place unless a fresh review is undertaken under the legal and regulatory procedures of the Energy Act, 2019, as confirmed by several reports.

• Government rationale: The withdrawal is intended to support a sustainable energy sector, protect households, businesses, and industries from cost escalation, and promote economic growth and job creation, according to statements attributed to Wandayi by multiple sources.

• Time-of-Use tariff programme: A single source reported that the government is promoting the Time-of-Use tariff programme to lower energy costs for manufacturers by encouraging off-peak operations.

• Possible diesel price reduction: The same source also quoted CS Wandayi as signaling a potential reduction in diesel prices in the next monthly fuel review, a move expected to ease costs for transporters, farmers, and manufacturers.

Perspectives

The government's position, as conveyed through CS Wandayi's statements, emphasizes the dual goals of ensuring affordable energy for consumers while maintaining a sustainable and predictable environment for industry players. The decision to withdraw the tariff review is framed as a protective measure that supports economic growth and job creation.

The manufacturing sector's perspective is reflected in the Cabinet Secretary's remarks about the direct impact of energy costs on competitiveness, investment, and livelihoods. The promotion of the Time-of-Use tariff is presented as a way to help large power consumers reduce operating expenses.

Consumer concerns are addressed through assurances that the withdrawal will not affect the continuity of electricity services and that current rates will remain unchanged, providing some predictability for households and businesses.