23 C
Kenya
Wednesday, November 25, 2020

Kenya Power set to increase cost of electricity

Must Read

Safaricom posts Sh. 33.7 billion profit in six months

Safaricom 2020 Half Year Results: Safaricom has posted a profit decline of six per cent in six months. The...

Uhuru: Schools to reopen in January, curfew now at 10pm

Covid-19 Protocols in Kenya: President Uhuru Kenyatta has announced that schools will reopen in Kenya in January 2021. The...

LG Electronics Kicks off a ‘DARE TO DREAM’ Campaign to Reward Lucky winners with LG AI DD Washing Machine

 LG East Africa has unveiled a campaign dubbed “DARE TO DREAM” talent search that seeks to reward lucky Kenyans...

Cost of Electricity in Kenya: The cost of electricity in Kenya is set to rise significantly. This is after the Energy regulator approved higher electricity prices by Kenya Power which has been pushing to hike the charges by at least 20 percent.

According to a report that appeared in the Business Daily on Thursday, the energy regulator had agreed to offer the utility a tariff hike.

However, the report said, the higher tariffs will be revealed in the coming weeks and subjected to public participation before they take effect through a Kenya Gazette announcement.

Mwenda Thuranira: The tycoon behind Sh. 20 billion property project

“If implemented, the higher tariffs will aid Kenya Power’s turnaround efforts, but hurt household budgets and raise the already high cost of doing business in Kenya. Kenya Power wants to increase the consumption charge for usage of less than 100 kilowatts per month to Sh. 12.50 a unit, up from the current Sh. 10,” the report said. “The charge for consuming above 100 units will rise to Sh. 19.53 a unit from the current Sh. 15.80 in the event that the regulator approves the proposed tariffs.”

EPRA cut the tariff from November 2018 to July 2019 to Sh. 10 per kilowatt hour from Sh. 15.80 for customers who use below 100 kilowatts per month.

According to the report, Kenya Power has been seeking high charges as one of its strategies to reverse its dwindling fortunes. The national power provider has issued profit warnings for three years in a row. It has also not paid dividend, and its share trading price on the Nairobi Securities Exchange has fallen sharply.

“Kenya Power this year issued its third profit warning in a row, citing reduced electricity consumption due to coronavirus control measures and rising cost of buying wholesale power from firms like KenGen. The alert means the utility’s net earnings will decline by at least 25 percent of last year’s profit of Sh. 262 million — which was the worst in 16 years. The utility firm also last paid a dividend in 2017,” the report sad.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

190,412FansLike
11,005FollowersFollow
243FollowersFollow
302SubscribersSubscribe
WhatsApp
Telegram

Latest News

LG Donates Puricare Wearable Air Purifiers To Frontline Healthcare Workers

LG Electronics in partnership with Opalnet Limited have donated PuriCare wearable air purifiers worth Kshs 5 million to the Kenya Medical...

Co-op Bank braces Covid to post Sh. 9.77 billion net profit in nine months

Co-op Bank Nine Months Profit: The Co-operative Bank Group has reported a net profit of Sh. 9.77 billion for the first nine months of...

KDF pays farmers Sh. 250 million after Kenya Meat Commission takeover

KMC Beef Farmers: President Uhuru Kenyatta's decision to transfer the Kenya Meat Commission to the Ministry of Defense appears to be paying off for...

Our customers are switching to solar, Kenya Power laments

Solar Usage in Kenya: Kenya Power has raised alarm that it is losing customers to solar energy. According to a report that appeared in...

LG Donates Puricare Wearable Air Purifiers To Frontline Healthcare Workers

LG Electronics in partnership with Opalnet Limited have donated PuriCare wearable air purifiers worth Kshs 5 million to the Kenya Medical Association (KMA) for further distribution...

More Articles Like This