Kenya's Electricity Prices Expected to Rise Due to Fuel Costs
Electricity prices in Kenya may increase slightly due to rising fuel costs and foreign exchange fluctuations, as stated by Energy PS Alex Wachira. The government aims to mitigate impacts through increased hydropower generation and electricity imports from neighboring countries.
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Electricity prices in Kenya are projected to rise marginally due to increased fuel costs and fluctuations in foreign exchange rates. Energy Principal Secretary Alex Wachira indicated that the government is implementing measures to stabilize costs, including ramping up hydropower generation as water levels improve in key dams.
The use of diesel and heavy fuel oil, particularly in off-grid areas, remains a significant factor impacting electricity pricing. Despite the anticipated price adjustment, the government asserts that enhanced rainfall will mitigate the extent of the increase.
However, concerns persist among lawmakers regarding the economic implications of even slight price hikes. Moreover, frustrations over stalled electrification projects were expressed, with calls for transparency in project execution and funding. The ministry reported a rise in electricity connections from 8.8 million in 2022 to 10.1 million.
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