The Ministry of Energy has announced a 15 percent reduction in electricity tarrifs effective January 1 2022. The announcement is in line with President Uhuru Kenyatta’s pledge to reduce energy costs by 30 percent this year.
“The tariff reduction is a fulfilment of the commitment made by President Kenyatta to the nation on Jamuhuri Day 2021 and that the first tranche of 15 per cent reduction in the cost of power will be reflected in bills covering the end year of 2021,” the Ministry stated.
“This reduction coming in January will boost livelihoods and economic growth by reducing the cost of living, putting more money in Kenyans pockets and reducing the cost of doing business.”
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The newly amended non-fuel tarrifs were published in a special issue of the Kenya Gazette on Friday, effectively cutting the prices of electricity with the Energy and Petroleum Regulatory Authority by about one-fifth.
According to the notice, a unit will cost Sh7.70 for domestic consumers who consume less than 100 units per post-paid billing or pre-paid units. This is down from the previous tariff of Sh10 per unit.
On the other hand, it will now costs Ordinary domestic consumers with a consumption of less than 100 and 15,000 units Sh12.60 per unit, down from the previous Sh15.80.
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Non-domestic small commercial consumers with a consumption of less than 100 units will now pay Sh7.70 per unit, from the previous Sh10.
It will cost commercial users whose consumption is between Sh101 and 15,000 units Sh12.40, down from Sh15.60.
For commercial and industrial consumers whose consumption exceeds 15,000 units, the energy charges will be Sh8.70 per unit and Sh4.35 per unit during off peak hours, as well as a Sh800 demand charge per kilovolt amps (kVa).
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The monthly electricity bill will also include taxes and levies as well as fuel energy costs, non-fuel energy costs and a 16 percent vatable rate on the demand charge
The Ministry further said that it was targeting an additional 15 percent reduction on the the electricity costs by March this year.
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