Kenya Power has announced a significant reduction in electricity tariffs for 2024, attributing the decrease to the strengthening of the Kenyan shilling against the US dollar and a drop in fuel prices.
According to the utility company, the base tariff has been reduced from Ksh19.04 per unit in 2023 to Ksh17.94 per unit in 2024. This reduction is expected to ease the financial burden on consumers and boost economic activity by lowering energy costs.
However, Kenya Power has also warned that the incorporation of wayleave charges into energy bills could potentially increase the overall cost of electricity by as much as 30%. Wayleave charges are fees paid to landowners for the use of their property for installing power infrastructure, such as transmission lines. If these charges are passed on to consumers, the benefit of the reduced base tariff may be partially offset.
This move comes at a time when the country is striving to enhance its energy affordability and ensure sustainable power distribution. By lowering the base tariff, Kenya Power aims to support households and businesses while balancing the financial implications of necessary infrastructure costs.
As Kenya Power continues to monitor market conditions and currency fluctuations, both consumers and industry experts will be watching closely to see how these changes impact electricity bills in the coming year.
