Kenyans are facing some sought of relief as electricity prices recorded a 3.6 per cent decline this month on a decrease in variable charges, including fuel cost charge (FCC) and foreign exchange fluctuation adjustment (FERFA).
An analysis of power bills shows those consuming 50 kilowatt-hours (kWh) will settle Sh1,237.2 this month, down from Sh1,283.3 in October.
Consumers are paying less for electricity this month after the Energy and Petroleum Regulatory Authority (Epra) reduced the FCC and FERFA, resulting in a reprieve for consumers.
The fuel cost charge decreased by 10.3 per cent from Sh7.09 per kWh last month to Sh6.36 per kWh, and the foreign exchange effect decreased slightly from Sh1.48 per kWh to Sh1.41 in the period under review.
This is the first decline in electricity prices since August, following two subsequent price increases after the new administration scrapped fuel subsidies.
The former president Uhuru Kenyatta had promised a 30 per cent cut on electricity prices, whose first cut of 15 per cent was implemented in January to cushion consumers against harsh economic headwinds.
The tariff cut was reversed in September, sending power bills up, compounded by a rise in variable charges. Consequently, electricity consumption fell in September as users began feeling the pinch of higher energy prices on discontinued subsidies and a weakening shilling.
Kenya’s inflation hit a five-year high in October amid a continued increase in the cost of food, fuel, and housing.
Inflation came in at 9.6 per cent in October, which was up from September’s 9.2 per cent. October’s result was the highest inflation rate since May 2017.