More Pain for Consumers as Electricity Prices Rise Marginally in January

Kenyans were forced to dig deeper in their pockets as domestic electricityprices rose marginally to a new high of KES 26.39 per kilowatt-hour in January, a 0.4% rise compared to December 2022.

The cost of domestic power jumped from KES 26.29 on increased variable charges such as fuel cost charges (FCC). FCC rose by 0.84 per cent from KES 7.12 per kWh to KES 7.18 per kWh, one of the first highest jumps in FCC recorded in the last five years.

A rise in fuel surcharge increases the cost of power by reducing the number of units bought.

The cost of power has risen for the fifth month in a row on the back of high global oil prices and a weak shilling since the President Ruto administration assumed office.

Kenya's inflation dipped marginally to 9.1 per cent year-on-year in December, down from 9.5 per cent a month earlier, easing for the second month on lower food and fuel prices.

An analysis of electricity prices shows those consuming 50 kilowatts per hour (kWh) are paying KES 1,319.61, up from KES 1,314.42 in December.

Homes using 100kWh are paying KES 2,639.22 in January from KES 2,628.85 reported in December, while consumers will part with KES 3958.83 this month from KES 3,943.2 last month for 150kWh worth of consumption.

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