Kenya Power blames fake forex rate for Sh23bn loss

Kenya Power is blaming the Energy and Petroleum Regulatory Authority (Epra) for the Sh23 billion loss it incurred in the year ended June for using the Central Bank of Kenya's foreign exchange rates instead of those quoted in actual market transactions when paying its lenders and electricity suppliers in foreign currencies.

Auditor General Nancy Gathungu says the firm uses the CBK rate when passing the exchange rate fluctuation costs to consumers, but pays power producers at the prevailing market rate, with the difference in the two rates costing it billions of shillings.