HomeRegional NewsEast AfricaKenya postpones electricity tariff increases

Kenya postpones electricity tariff increases

Kenya’s Mumias
power plant
Nairobi, Kenya — ESI-AFRICA.COM — 01 July 2011 – Kenya Power has announced that it is postponing its plans to raise the country’s electricity tariffs this month because of the tough economic conditions Kenyan power consumers are facing.

Reuters reports that inflation has been rising this year, jumping to 14.49% in June on the back of high food and fuel prices.

“Cognisant of the current serious and unfavourable social and economic circumstances, Kenya Power applied for a postponement of the application for a tariff review, until the situation improves,” the company said in a statement issued here.

Kenya Power “’ which is 50% owned by the government “’ is allowed by the Energy Regulatory Commission to review its tariffs every three years.

The sole transmission and distribution utility in east Africa’s largest economy, which is prone to blackouts due to generation shortfalls and its aging grid, had been planning to raise tariffs by 25 to 30% from today.

Energy minister Kiraitu Murungi had opposed an increase in tariffs at a time when Kenyans were grappling with high costs of living.