How to mitigate forex risk in electricity bills

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Kenya Power sells electricity in local currency, but buys the same from the IPPs in hard currencies, like the dollar. PHOTO | SHUTTERSTOCK

Recent revelations that independent power producers (IPPs) were selling electricity to Kenya Power at exorbitant prices sparked an uproar among electricity consumers who bear the brunt of escalating prices.

Whereas the outcry seems to have subsided, it's bound to resurface sooner or later, given our electricity sector’s dollarisation level.

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Note: The results are not exact but very close to the actual.