NAIROBI, Kenya, Jan 11 – Kenya Association of Manufacturers (KAM) has welcomed the 15 percent reduction in power tariffs in the country describing the move as a significant milestone in boosting manufacturing and investments in the country.
The Ministry of Energy on January 7 effected a 15 percent reduction in power tariffs following President Uhuru Kenyatta’s directive in December 2021 that was aimed at alleviating the economic burden faced by Kenyans.
The reduction is part of a 30 percent reduction promise and will cover the period between January and December 2022 reflecting bills covering the December 2021 period.
In a statement, the lobby group noted that the reduction is timely coming at a time when the economy is experiencing the impact of the COVID-19 pandemic, including rising costs, supply challenges, and lower purchasing power.
“This is a significant milestone towards realizing our long-standing efforts to reduce power costs, the timing is especially apt as achieving overall sustainable and stable policies on the cost, availability, and reliability of power is paramount to our economic growth,” a statement read in part.
The association further emphasized the need to effect the remaining 15 percent power cut in order to fully gain from the benefits of this move.
“We support the government’s efforts to address the fuel cost component that is one of the key factors in energy costs, as well as, the expensive petro-thermal generation, whose cost is greatly affected by fluctuating global prices and exchange rates
Under the move, consumers shall enjoy a cost reduction of between Shs 2.67 – 3.64 per unit of electricity, depending on their respective tariff and consumption levels, the cost of power shall be further reduced for industries that meet the time of use tariff threshold, as gazetted.
