Kenya Cuts Energy Tariffs by 21pct for Big Consumers

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Kenya has announced a 21 percent downward revision of electricity tariffs aimed at boosting the manufacturing sector’s production.

 In a Notice pursuant to the Energy Act 2019, the Energy and Petroleum Regulatory Authority (EPRA) lowered retail tariffs for big consumers to Ksh 7.99 per KWh from Ksh10.10 previously.  

EPRA said this relates to “Amendments to Gazette Notice No. 8043 of 2018 in respect of the schedule of Tarrifss, charges, prices, and rate to be charged by the Kenya Power and Lightening Company limited to consumers of the electrical energy.”

Manufacturers operating in Special Economic Zones, the Olkaria—Kedong Special Economic Zone in Naivasha, will Ksh 5 per KWh from the current rate of Ksh 10.10 and Ksh 12. Offpeak charges have been cut to 3.995 shillings per KWh from 5.05 per unit.

Pavel Oimeke, EPRA Director-General, said the discount will apply to larger manufacturers connected to the 220 kilovolt lines. 

“The large industries will enjoy significant relief from this new revision given that they also have a cheaper time of use tariff and the ongoing rebates plan. We have also come up with a special tariff for the Special Economic Zones,” Mr Oimeke said.

 The Kenya Association of Manufacturers(KAM) at the sidelines of the Japan and Kenya trade fair, commented that cheaper electricity tariffs would attract more investments.

“This is quite a competitive price for large consumers like metal and allied sector, textile and glass manufacturers, so we are keen to see these tariffs gazetted so that manufacturers can take advantage of it,” KAM CEO Phyllis Wakiaga said.