HomeRegional NewsEast AfricaCost of electricity expected to drop in Kenya

Cost of electricity expected to drop in Kenya

Excess water flows
down the Masinga
dam spillway after
the welcome recent
heavy rains in Kenya
Nairobi, Kenya — ESI-AFRICA.COM — 08 December 2011 – The cost of electricity is expected to fall in Kenya as the shilling stabilises and the current heavy rainfall raises hydropower generation in the country.

The country’s national power distributor Kenya Power says electricity charges have already gone down by Sh1.50 due to change in fuel adjustment levy. Managing director Joseph Njoroge said: “Our customers should notice the difference.”

Meanwhile allAfrica.com quotes “The Daily Nation” as reporting that Masinga dam is full after heavy rains, so hydro generation has increased. “We are operating at the maximum hydro generation level and we have a lot of energy,” Njoroge said here. “The company will continue opening more pay centres to serve its growing customers who stand at 1.8 million, up from 1.7 million last year. The company is targeting 300,000 additional consumers by the end of the year.

The managing director blamed the high electricity cost on a weak shilling and drought in many parts of the country. Fuel-driven generators had to be used to produce electricity which is much more expensive. Kenya Power has been increasing electricity charges in line with the changes in fuel costs.

Njoroge said that while his company normally paid for power at about 3.5 US cents per kilowatt, a weak shilling against the dollar and foreign exchange instability had pushed the cost to 13 US cents for the same unit.

“We were servicing an expensive loan, and that was not very good news, but with a stable shilling, we hope to see a further reduction in the cost of fuel. This is expected to give our customers further relief on charges," he said.