Electricity bills rise in July as fuel, forex charges increase
Monthly pass-through costs add about KSh5.18 per unit while base tariff remains unchanged.
NAIROBI – Households and businesses will pay more for electricity this month after the Energy and Petroleum Regulatory Authority (EPRA) set higher monthly fuel, foreign exchange and inflation-related charges that together add about KSh5.18 per kilowatt-hour (kWh) to power bills.
According to a Gazette Notice issued by EPRA, the adjustments, which take effect in July meter readings, are separate from the base electricity tariff and reflect changes in fuel costs, exchange rates and other regulatory charges under the country’s cost-reflective pricing system.
EPRA set the Fuel Energy Cost Charge at KSh3.20 per kWh, the foreign exchange adjustment at KSh1.4841 per kWh, an inflation adjustment of KSh0.48 per kWh for the period from July to December, and a Water Resources Management Authority levy of KSh0.0157 per kWh.
The combined adjustments mean a household consuming 100 units of electricity will pay about KSh518 more before taxes and other statutory charges.
The charges are designed to allow utilities and independent power producers to recover costs associated with fuel used by thermal power plants, imported electricity, foreign exchange losses and rising operating expenses.
The country operates a cost-reflective electricity pricing system under which these variable charges are reviewed every month, while the base electricity tariff remains unchanged.
The higher fuel charge reflects continued reliance on thermal power generation during periods when hydropower output is insufficient to meet demand, while the foreign exchange adjustment compensates electricity producers whose contracts and financing obligations are denominated in foreign currencies.
The higher charges come as households continue to face elevated living costs, while energy-intensive businesses such as manufacturers, bakeries, salons and small workshops are likely to see operating costs rise.
Although electricity bills have risen, the government earlier this month shelved proposals for a broader review of the base electricity tariff. Energy Cabinet Secretary Opiyo Wandayi said the decision was intended to “protect households, businesses and industries from cost escalation” while supporting a sustainable electricity sector.
