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Power line wayleave charges to push energy costs up by 30pc

NAIROBI, Kenya, Mar 4 – Kenya Power has warned that the proposed Sh200 per meter charge for power line wayleaves could increase the country’s energy costs by 30 percent, translating to an additional Sh63.8 billion annually.

A power line wayleave allows utility firms to legally install, maintain, and repair power lines on private land. If implemented, Kenya Power cautions that the extra costs will be passed on to consumers, leading to significantly higher electricity bills.

The warning comes after Nairobi County recently slapped Kenya Power with a Sh5 billion wayleave debt, following the utility’s demand for payment of the county’s electricity bill.

Kenya Power Managing Director Joseph Siror, speaking at a Kenya Editors Guild engagement, noted that while the stronger shilling has reduced costs related to foreign exchange and fuel, the proposed wayleave charges could reverse recent electricity price declines.

He cited a reduction in the base energy cost following the April 2023 electricity tariff review, which introduced a three-year plan to lower unit prices annually.

Currently, the base tariff has dropped from Sh19.04 per unit in 2023 to Sh17.94 per unit, easing consumer electricity costs.

However, Kenya Power cautioned that incorporating wayleave charges into energy bills could wipe out these gains, significantly increasing power costs for households and businesses.

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