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Economy

Kenya Power's prepaid service resumes with new tariffs

Kenya Power Company worker.
A Kenya Power worker. FILE PHOTO | TOM OTIENO | NMG 

Kenya Power has resumed normal service on its prepaid system after hours of shut-down to align it with the new electricity tariffs announced by the Energy Regulatory Commission.

The State power utility shut down the system at midnight to start the 14-hour adjustment, affecting millions of customers who could not buy electricity tokens until 2pm today.

"The Prepaid System that vends electricity tokens to prepaid customers is now operational. Customers can now vend for electricity tokens in line with the new tariffs,” Kenya Power said in a statement this afternoon.

Energy Regulatory Commission Wednesday declared that households consuming a maximum of 100 kilowatt-hour (kWh) would pay reduced charges of Sh10 per unit, after increasing the lifeline (subsidy) threshold to 100 units from 10 units announced in July.

Other charges

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The changes did not however, factor include variable pass-through charges such as 16 per cent valued added tax (VAT), fuel cost charge, forex charge and inflation.

Under the old tariff structure, only households using up less than 10kWh had been granted a discounted charge of Sh12 per unit, with those consuming higher electricity levied Sh15.80 per kW.

ERC director-general, Pavel Oimeke said the change were meant to accommodate more than 5.7 million households in informal settlements, urban, peri-urban and rural areas to cushion them from increased of living.

The changes followed President Uhuru Kenyatta's directive to the Energy ministry to review the cost of electricity within one month to make it more affordable to Kenyans.

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