Kenyan shilling’s surge slashes power bills by 13%
Electricity consumers in Kenya are set to enjoy a 13.7 percent drop in the cost of power this month attributable to the ongoing strengthening of the Kenyan Shilling against the US dollar and other major currencies.
In an update to the public, Kenya Power said the ease in power bills is also a result of the reduction in the cost of fuel that is often used in the generation of electricity. Overall, Kenya Power reported a 37 percent reduction in fuel cost charges and forex fluctuation.
For customers consuming less than 30 units per month, they will pay Kes629 in April relative to Kes729 which they paid for a similar supply in March.
Meanwhile, electricity consumers under Kenya Power’s Domestic Customer 3 tariff, which averages between 31 and 100 units per month someone using say 60 units will part with Kes1,574 in April compared to Kes1,773 paid in March.
“The fuel cost charge reduced from Kes4.64 in March 2024 to Kes3.26 in April 2024 and from a high of Kes4.93 in January 2024,” Kenya Power explained.
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Forex charge
On the other hand, the forex adjustment charge reduced from Kes3.68 in March 2024 to Kes1.96 in April and from a high of Kes6.85 in January 2024, the utility’s statement read in part.
The parastatal’s CEO Dr Joseph Siror added that the reduction has offered reprieve “to our customers and 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 Kenya Shilling has been gaining against the US Dollar and other major currencies with the World Bank attributing the change to the country’s move to the Central Bank’s tough interest rates stance as well as the partial settlement of Eurobond debt in February.
Across Africa, the Kenyan Shilling has turned from the worst-performing currency to posting the biggest gains.
“The Kenyan Shilling is the best-performing currency in the sub-continent and it recorded an appreciation of 16 percent so far this year. After strengthening by 14 percent in mid-February, the Zambian Kwacha has lost some ground and recorded a year-to-year date appreciation of 2.4 percent as of mid-March. In both cases, the monetary authority hiked interest rates to defend their currencies,” the World Bank explains.
According to the Central Bank, Kenyan Shilling closed the week ending April 11 trading at 130.39 per US dollar relative to 131.17 on April 4th.
