Wednesday, February 21, 2024

For every Sh. 2,000 used to buy tokens, Sh. 1,750 going to taxes, charges

For every Sh. 2,000 Kenyans are sending to Kenya Power to purchase tokens, an astonishing Sh. 1,750 is going to taxes and charges.

This means that only Sh. 250 is being used to buy the actual tokens. A tokens report shared by one consumer shows how this shocking breakdown is done.

The breakdown shows that the consumer was only able to get 77.93 units from the Sh. 2,000 he used to buy the tokens:

Units: 77.93

Amount Ksh: 2000.00

Token Amount: 981.91

VAT: 245.49

Fuel Energy Charge: 552.49

Forex Charge: 115.55

EPRA Charge: 2.33

WRA Charge: 0.93

REP Charge: 49.09

Inflation Adjustment: 52.21.

Sh. 400m graft case against ex-Kenya Power CEO Ben Chumo dropped

These exorbitant charges are gradually propelling Kenya to the top position in the disgrace list of countries with the costliest power.

The Energy and Petroleum Regulatory Authority (EPRA) has been raising power charges under the guise of costly fuel and the depreciating shilling.

In the month of October 2022 for instance, the EPRA increased the Fuel Cost Charge to Sh. 7.09 per unit of electricity consumed this from the Sh. 6.79 in September 2022. At the same time, the Foreign Exchange Fluctuation Adjustment was increased to Sh. 1.48 per unit from Sh. 1.37 in September 2022.

EPRA is empowered to change some of the components of the power bill including FCC, forex adjustment and the water levy every month.

It is also required to change inflation adjustment every six months to reflect the higher or lower cost of buying goods and services depending on the prevailing economic conditions.

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