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Reprieve for Kenyans as Electricity Cost Revised Downwards

Electricity Cost Revised

1st of November, 2018 is a happy day for Kenyans after the president issued a directive to have electricity cost revised downwards.

On the 31st of October 2018, The Energy Regulatory Commission raised the lifeline threshold to 100 kilowatt-hour (kWh) from 10 units it set in July, cutting power bills for low-income households and small-sized businesses.

The downward review means that households and businesses consuming a maximum of 100 units of power will fall by as much as Sh7.02 per unit or 31.63 per cent compared with October after factoring in variable pass-through charges such as 16 per cent valued added tax (VAT), fuel cost charge, forex levy and inflation charge.

To explain this graphically for a household that consumes 100 kilowatt hours (KWH) /units, these are the new rates that they will be charged. 

  Old RatesNew Rates
Unit Charge1,5801000
Fuel Cost Charge250250
Forex Credit-8-8
Inflation Charge1010
Vat 16% (Sh)212119
Total2,047 Ksh1,374 Ksh

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Baba Hakeem

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