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    Electricity Prices Rise 10% on Weakening Kenyan Shilling

    Leah
    By Leah Wakarima
    - March 09, 2023
    - March 09, 2023
    Kenya Business news
    Electricity Prices Rise 10% on Weakening Kenyan Shilling

    During the latest Energy and Petroleum Regulatory Authority (Epra) monthly review, electricity prices rose by 10% due to a surge in fuel cost charge (FCC) to KES 8.3 per kilowatt-hour (kWh), up from KES 6.59 per unit last month.

    The rise was attributed to higher fuel prices and the weakening kenyan shilling against the dollar, which recently hit an all-time low of KES 127.

    Epra also raised the foreign exchange rate fluctuation adjustment (Ferfa) to KES 2.16 per unit from KES 1.85 per unit last month, which was also attributed to the weakening shilling. 

    This raised the unit cost of power for lifeline consumers to KES 22 per unit, up from KES 20 last month, forcing customers to pay more for the same quantity of electricity.

    The move comes weeks before the energy regulator is expected to publish new power tariffs that will significantly further raise power prices.

    The higher power prices are set to heavily hit consumers at a time inflation has increased to end a three-month consecutive decline. Inflation jumped to 9.2 per cent in February, coming after it slowed for three consecutive months to hit 9 per cent in January.

    Read also; Relief as Electricity Prices Drop Slightly in February.

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