In its most recent evaluation of electricity costs, Kenya Power has caused an uproar amongst Kenyans after it revised the rate of electricity tokens upwards by 16%.
The increase in the price of electricity has caused an uproar amongst Kenyans with Wiper Leader voicing his sentiments on social media:
“The 16% increase in tokens by@KenyaPower is the latest unacceptable burden on tired, hungry, and angry Kenyans. This is a clear example of the KK regime’s inability to address the cost of living. They want to leave us in the dark, but I am telling them, kuna nuru gizani!” Kalonzo posted on X (formerly Twitter).
Forex adjustment charge
The alteration in token value is attributed to a significant rise in the forex adjustment charge, escalating from Ksh28.11 to Ksh50.53.
The forex adjustment represents the deduction made for foreign exchange when buying tokens, determined by the fluctuation of hard currencies against the Kenyan Shilling.
Recent weeks have seen the dominance of the dollar over the Kenyan Shilling, with the currency presently trading at an average of Ksh159. A comparison with the British pound on January 11, also indicates an average trading rate of Ksh202 for 1 sterling pound.
Kenya Power imposes a 16% VAT on prepaid token units, covering fixed charges, consumption, fuel cost charges, forex adjustments, demand charges, and inflation adjustments.
Interestingly, other factors witnessed adjustments as well. The fuel energy charge decreased while the Energy and Petroleum Regulatory Authority (EPRA) charge also dropped.
The Water Resources Authority (WRA) charge, applied for energy sourced from hydropower plants, and the Rural Electrification Programme (REP) were also reduced.
The Rural Electrification Programme (REP) charge is a levy, constituting five percent of the power units’ cost. It is allocated to the Rural Electrification Authority (REA) for rural electrification projects.
