Hope for lower electricity bills as Kenya seeks to use local currency in pricing

Electricity consumers queue to pay bills at the Kenya Power offices. FILE PHOTO | NATION

In a move aimed at shielding consumers from foreign-exchange volatility — one of the components that contribute to high electricity costs — Kenya will start using the local currency in power purchase agreements (PPAs) between investors and the utility firm, Kenya Power.

Although Kenyans are paying for electricity in shillings, they bear the burden of paying for forex adjustments for projects financed in hard currency which are passed on by Kenya Power every month.