Kenya: Power utility, manufacturers at loggerheads over electricity tariffs

By Herald Onyango

Posted on Monday, 6 March 2023 10:14
Electricity cables are seen near the power-generating wind turbines in Ngong hills, outside Nairobi, Kenya February 14, 2022. REUTERS

The plan by Kenya Power and Lighting Company (KPLC) to implement yet another round of electricity price increases faces the possibility of being scrapped as manufacturers are pushing in the opposite direction.

Lobby group Kenya Association of Manufacturers (KAM) demands that the current power tariffs be lowered to boost the industry in the East African nation.

The tug-of-war means one of the two sides will eventually get the short end of the stick.

On the one hand, lower tariffs will further squeeze the coffers of the struggling power distributor, which sunk into a KSh1.1bn (nearly $265m) net loss by last December, largely due to power cuts and a depreciating shilling.