Relief for Kenya as electricity bills reduced by 15%

The Ministry of Energy on Friday announced a 15 percent reduction in power costs in Kenya, handing relief to families and industries burdened by high cost of living.

The ministry in a statement released in Nairobi said the reduction takes effect immediately and would cover the entire 2022 period.

"The tariff reduction is a fulfillment of a commitment made by President Uhuru Kenyatta to the nation, that the first tranche of reduction, 15 percent, will be reflected in the bills covering the end of the year in 2021," said the ministry.

The ministry observed that the reduction 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.

The ministry said it is working to see the second 15 percent reduction is affected in the first quarter of the year, bringing the total cut to 30 percent.

The 30 percent cut will see consumer costs drop from an average of Sh24 per kilowatt-hour to Sh15.

The implementation of the reduction of energy cost by 30 percent comes after the president issued a directive in October 2020 to fast track the implementation of the recommendations of the Presidential Taskforce on Power Purchase Agreements.

“I urge the power producers to demonstrate goodwill as we seek to make our energy sector a greater catalyst of our national development,” he announced.

Kenya's demand for electricity has sustained an upward trend, growing at an average rate of 4.5 percent year-on-year driven by rising economic activities.