Relief at the switch as Kenya Power announces slight power cost reduction

Kenyans can expect some slight relief on their electricity bills as Kenya Power, the country's main electricity distributor, announced a 13.7 per cent reduction in power costs effective this month.

The company attributes this positive development to a strengthening Kenyan shilling against the US dollar and a decline in global fuel prices.

This news comes after a period of strain on household budgets due to rising electricity costs.

The key factors influencing these costs, the fuel cost charge and foreign exchange fluctuation adjustment, have seen a significant decrease of 37.3 per cent between March and April 2024.

"We are happy to note that the reduction has given a reprieve to our customers," stated Joseph Siror, Kenya Power's Managing Director & CEO.

"We are optimistic that the prevailing macroeconomic environment and the improved hydrology, which enables us to dispatch less thermal power, will sustain the benefit to our customers."

The decrease translates to real savings for Kenyans across different consumption levels.

Domestic consumers using less than 30 units of electricity per month (DC1 band) will see a 13.7 per cent reduction, translating to a bill of Sh629 in April compared to Sh729 in March.

Customers in the DC2 band (averaging 31-100 units/month) will experience an 11.2 per cent decrease, paying Sh1,574 this month compared to Sh1,773 last month.

Finally, those in the DC3 band (consuming over 100 units/month) will see a 9.7 per cent reduction, with their bills coming down to Sh3,728 from Sh4,127.

This price reduction offers a much-needed breather for Kenyan households and could potentially stimulate economic activity as disposable income increases.

However, Kenya Power remains cautious, expressing optimism that the positive economic climate and improved water levels for hydropower generation will allow them to sustain this benefit for their customers.