
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
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
Old Rates | New Rates | |
Unit Charge | 1,580 | 1000 |
Fuel Cost Charge | 250 | 250 |
Forex Credit | -8 | -8 |
Inflation Charge | 10 | 10 |
Warma | 2 | 2 |
Vat 16% (Sh) | 212 | 119 |
Total | 2,047 Ksh | 1,374 Ksh |