The cost of electricity is expected to go up significantly beginning this July after the Energy and Petroleum Regulatory Authority (EPRA) increased the forex exchange component on the power bill.
The forex fluctuation adjustment rose in the review announced last Friday to KSh1.16 per unit.
This is the highest charge in three years since July 2018, when consumers paid KSh1.22. This new rate per kilowatt-hour means the forex charge has gone up 52% from 77 cents in June.
The forex adjustment is done monthly to cushion consumers from any volatility of the Kenya Shilling against the US dollar.
The rate moves upwards when the Kenya Shilling weakens against other major world currencies. But the latest adjustment is happening when the local unit has been strengthening against other currencies, especially the greenback.
In a gazette notice, the energy and petroleum regulator said that all electrical energy prices specified in Part II of the Schedule of Tariffs would be liable to a forex fluctuation adjustment of plus 116.12 cents per kWh for all metre readings in July 2021.
Electricity costs to load onto strained household budgets
More costly power is likely to strike Kenyans as most households are yet to recover from the effects of the COVID-19 pandemic.
The forex charge has remained low and sometimes in negative territory, meaning consumers have been getting more units while loading the tokens.
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