Kenya’s payment for electricity imports from Uganda dropped by Sh744 million or more than a third in the first four months of the year on increased local generation.
Kenya bought 101.5 million kilowatt hours (kWh) from Uganda in the nine months to September at Sh2.1 billion, down from 182.19 million kWh worth Sh3.8 billion in a similar period a year earlier — reflecting a 44.7 per cent drop.
This eased the pain of a higher tariffs pact the two countries inked in 2014 that puts cross-border purchase of electricity at Sh21 per kWh, up from between Sh8 and Sh10.
Kampala has emerged as a key beneficiary of the new tariff as Kenya remains a net importer of power due to local generation lagging consumption.
At Sh21, Uganda power is seven times costlier than hydropower generated from local dams.
The reduced demand for Uganda electricity came at a time when local generators upped supply to the grid.
Kenya Electricity Generating Company #ticker:KEGN and independent power producers injected 781 million kWh additional electricity into the national grid during the period to September compared to a similar period a year earlier.