Electricity cost in Kenya has risen to the fifth most expensive in Africa. Kenyans buying tokens are now paying more on taxes and charges to Independent Power Providers (IPPs) than they are paying for the actual tokens.
This is as the government appears to have given up on freeing itself from exorbitant, rogue contracts that the Ministry of Energy has gotten into with IPPs.
A spot check on some of these contracts shows that they will run to as far as 2035, with provisions that the government cannot opt out of them and must remit payments whether it uses their electricity or not.
This week, the shocking extent of the charges Kenyans are paying was broken down by data analyst Ezekiel K. Samuel as follows:
“The cost of electricity in the country has increased by 21% (for domestic users who use less than 100 units per month) and 15.1% (for domestic users who use more than 100 units per month)
Currently, the cost per kWh is estimated as 19.3 KES for domestic user consuming less than 100 units, and 25.2 KES for domestic users consuming more than 100 units per months. That’s a crude average of 22.3 KES per unit up from 18.9 KES last month
This places Kenya’s electricity at the household level as the 5th most expensive in the continent after Rwanda, Mali, Burkina Faso and Gabon
Worth noting is that for the domestic consumers using more than 100 units per month; half of their money goes to the taxes and other charges; while for the other category, the % share that goes to the taxes and other levies is 60%
Now, I want you to pay keen attention on the fuel energy charges! Yes, its percentage share is estimated as 35% for low consumers and 27% for high consumers! That’s massive. Check also on the forex charges!!
You may wish to know that nearly 85% of energy in Kenya is driven by hydro and geothermal; and only about 12% is from diesel! Quite interesting; yes, this is where the Independent Power Producers (IPPs) come in!
These are the boys making our electricity expensive!”