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Economy

Uhuru’s cheap power pledge unfulfilled on high tariffs

Outgoing Kenya Power boss Ben Chumo inspects a newly installed meter. PHOTO | SALATON NJAU
Outgoing Kenya Power boss Ben Chumo inspects a newly installed meter. PHOTO | SALATON NJAU 

High tariffs offered to Kenya Power have dented President Uhuru Kenyatta’s pledge to cut electricity prices during his tenure despite injecting cheaper geothermal to the national grid.

Data from the Kenya National Bureau of Statistics indicate that middle class homes are paying more for power under the Kenyatta administration compared to the previous Kibaki regime — which had been blamed for making Kenya uncompetitive through costly electricity.

Households consuming 200 kilowatt hour (kWh) paid Sh3,497 last month compared to Sh3,094 in December 2012, five months before Mr Kenyatta assumed power.

The higher electricity prices have also been linked to revision of value added tax (VAT) on electricity from 12 per cent to 16 per cent in September 2013.

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