Kenya cuts consumer power costs by 15 percent

NAIROBI, KENYA - 2019/12/15: A man is seen fixing illegal connections from a legal power post set up by Kenya Power in Kibera Slums Lack of electricity had been and is still one of the poverty and problems faced by over 2 million citizens living in Kenya's largest informal settlement Kibera Slums. It is one of the big challenges that has participated in drugging down Kenya's economic growth as not everyone can pay the energy consumption bills. In Kibera Slums, Illegal Electricity acts as one of the basic needs to most owners of small businesses operating here from early mornings till late midnights and serves most jobless youths who depend on it as their main Source of Income by renting it out illegally for 2 to 3 dollars to be able to feed their families and pay their bills. Despite the 2015 joint collaboration of the World Bank and (K.P.L.C) Kenya Power and Lighting Corporation which is Kenya's main Power distributor to come together and create cheap and fair access to electricity. By creating electric tokens and being able to provide them to few numbers of homes, not everyone prefers this method but they instead run for the poor and risky illegal supply. Most of the time residents here have been enjoying the Illegal connection of electricity but most times they are attacked by abrupt skirmishes like fire outbreak and deaths from the naked uncovered wires running from Rooftops to different corners of the houses and underground leading to death and burning down of house and loss of Properties. (Photo by Donwilson Odhiambo/SOPA Images/LightRocket via Getty Images)
A man is seen fixing illegal connections from a legal power post set up by Kenya Power in Nairobi’s Kibera community. (Photo by Donwilson Odhiambo/SOPA Images/LightRocket via Getty Images)

Kenya’s Ministry of Energy has announced a 15 percent reduction in power costs in the east African nation, handing relief to thousands of homes and industries burdened by high cost of living and production

The ministry in a statement released in the capital Nairobi said the reduction takes effect immediately and would cover the entire 2022 period.

“The tariff reduction is a fulfillment of a commitment made by President Uhuru Kenyatta to the nation, that the first tranche of reduction, 15 percent, will be reflected in the bills covering the end of the year in 2021,” said the ministry.

The government institution observed that the reduction will boost livelihoods and economic growth by reducing the cost of living, putting more money in Kenyans’ pockets and reducing the cost of doing business.

The ministry said it is working to see the second 15 percent reduction is affected in the first quarter of the year, bringing the total cut to 30 percent.

The 30 percent cut will see consumer costs drop from an average of 24 shillings (about 0.21 U.S. dollars) per kilowatt-hour to 16 shillings (about 0.14 U.S.dollars).

Kenya’s demand for electricity has sustained an upward trend, growing at an average rate of 4.5 percent year-on-year driven by rising economic activities.