Kenyan households, businesses and manufacturers have received a major reprieve after the government withdrew a proposal that would have raised electricity costs nationwide.
The Ministry of Energy and Petroleum on Wednesday announced the withdrawal of a retail electricity tariff review application that had been submitted by Kenya Power in March, effectively halting plans to increase power charges.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the decision was reached following consultations involving various government agencies and stakeholders within the energy sector.
“The application for tariff review by KPLC which we received in March this year has been withdrawn,” he said in a press statement.
The decision is most likely to delight millions of electricity customers who had complained about the potential increase in prices at a time when people are facing rising costs of living and operations due to inflation.
Over the last few weeks, the proposals for changes in tariff structure had created unease amongst consumers with fears of the potential impact that increased electricity bills would have on production costs, which were feared to lead to an increase in the cost of goods and services.
In its decision, according to Wandayi, the government has considered the need for balancing the need to ensure sustainability in the electricity sector against the need to protect customers from increased costs.
“This decision considers the necessity of addressing the issue of ensuring sustainability of the energy sector against the need to ensure that consumers do not face increased cost challenges,” Wandayi explained.
He added that stable prices in electricity are important in sustaining growth, ensuring the protection of livelihoods and creation of jobs in different sectors of the economy.
This decision will see continued payment of prevailing electricity costs by electricity customers, ensuring some form of stability for families and companies that had been prepared for a possible increase in their electricity expenses each month.
This decision from the government should assuage the fears of Kenyan citizens and stakeholders in the industry who had advocated for more thought being put into the economic consequences of increasing electricity tariffs.