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Kenya power delivers cheaper electricity bills for residents

A Kenyan family watches live G8 broadcast concert from Johannesburg at their home in Nairobi, Saturday, July 2, 2005   -  
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Kenya Power has recently announced a significant reduction of 13.7 percent in electricity costs, effective from this month onwards, which comes as a welcome relief for consumers across the country. 

This notable decrease is primarily attributed to two key factors: the strengthening of the Kenyan shilling against the American dollar and a notable decline in fuel prices.

The reduction in electricity costs is largely driven by a considerable decrease in both the fuel cost charge and foreign exchange fluctuation adjustment, which are vital components of the overall electricity bill. Specifically, between the months of March and April 2024, these variable components experienced a substantial reduction of 37.3 percent, marking a significant improvement in affordability for consumers.

For instance, the fuel cost charge, which stood at Sh4.64 in March 2024, has now decreased to Sh3.26 in April 2024, reflecting a significant drop from its peak of Sh4.93 observed in January 2024. Similarly, the forex adjustment charge has seen a notable reduction from Sh3.68 in March 2024 to Sh1.96 in April 2024, down from its highest point of Sh6.85 recorded in January 2024.

 Furthermore, consumers falling under the Domestic Customer 3 (DC3) tariff band, consuming more than 100 units per month, will experience a reduction from Sh4,127 in March 2024 to Sh3,728 in April 2024, enjoying a notable 9.7 percent decrease in their electricity bills.

Overall, the significant reduction in electricity costs heralds positive news for Kenyan consumers, offering much-needed relief in the face of prevailing economic challenges.

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