Kenya Power to start charging bills in dollars after obtaining regulatory approvals

The move aims to mitigate currency exchange risks and stabilise revenue streams for the utility company that announced a return to profitability with a Sh319 million profit in the first half of the financial year 2023/24.

This approval follows a period of extensive deliberation and assessment by regulatory bodies to ensure compliance and fairness.

“There was a lot of engagement on this right from the top, including the regulator and the government, and we got the necessary approvals,” Kenya Power Finance Manager Stephen Vikiru said on February 23.

A Kenya Power employee working on a power line pulse uganda

Kenya Power, in its bid to cushion itself against currency fluctuations, had sought permission to bill some customers in dollars.

Certain customer categories, such as large commercial and industrial consumers, will be affected by this project.

Customers who earn in dollars will be targeted in this new plan, which is meant to increase the convenience of paying bills in a single currency as well as mitigate forex exposure.

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The plan will also help Kenya Power meet its monthly demand for $46 million which it uses to pay dollar-denominated loans and power purchase agreements. The company also required an estimated €18 million monthly.

In the half-year results announced, the company recorded a 31% growth in revenue from electricity sales.

Revenue from electricity sales hit Sh113.55 billion, up from Sh86.66 billion.

This is attributed to an increase in customers, the termination of the 15 per cent subsidy and the introduction of higher tariffs in April 2023.

Kenya Power CEO & MD Joseph Siror speaks during the Kenya Power Grid Conference on June 8, 2023 Kenya Power CEO & MD Joseph Siror speaks during the Kenya Power Grid Conference on June 8, 2023 Pulse Live Kenya

The company also noted a 240GWh increase in electricity units dispatched from renewable sources and a reduction in electricity from thermal sources by 93GWh.

Another win was the Sh2.05 billion reduction in fuel cost charge in customer bills.

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