The monopoly Kenya Power and Lighting Company (KPLC) is currently negotiating with the Energy and Petroleum Regulatory Authority (EPRA) to increase electricity prices by up to 20pc.
This is after the Kenyan government softened its earlier stand against higher tariffs giving KPLC the freedom to revise their tariffs. Kenya Power now wants to increase the consumption charge for usage of less than 100 kilowatts per month to Sh12.50 a unit, up from the current Sh10.
For consumers who take above 100 units, the amount will rise to Sh19.53 a unit from the current Sh15.80.
The ministry of energy had earlier made its stand against the hike but is now in agreement that KPLC needs more cash to cover the cost of buying wholesale electricity from generators such as KenGen and also be able to maintain the national grid.
If it comes to pass, the higher tariffs will most likely hurt household budgets the most. The hike will also raise the already high cost of doing business in the country.
KPLC has been consistently seeking for higher tariffs, arguing that it needs them to cover the costs of capital-intensive building and maintaining of the nationwide electricity distribution infrastructure, the monopoly further states that the reduced electricity consumption due to coronavirus control measures has also affected the utility massively.
Electricity prices are among the expenses whose costs have jumped the most under the Uhuru administration since 2013.