Energy Regulatory Commission Revises Forex Levy Up By 41 Percent

By Juma Fred / December 11, 2017

The forex levy has been revised up by 41 percent m/m from 0.82 shillings per kilowatt hour in November.

The Energy Regulatory Commission (ERC) adjusts the forex levy to reflect forex rate and expenditure denominated in hard currencies related to the power supply.

The Shilling has gained ground against the US dollar in the recent past and thus economic analysts are of the view the forex adjustments are mainly to cater for the foreign debt obligations.

As at June 2017, Kengen Co. Ltd’s (NSE: KEGN) foreign exposure accounted for 89.36 percent of 138.71 billion shillings total borrowings while Kenya Power Ltd’s (NSE: KPLC) foreign exposure accounted for 83.43 percent of 121.02 billion shillings.

Trading on Friday’s session edged up to 1.3 billion shillings from a prior 587 million shillings. This was driven mostly by trades on the infrastructure bonds. Market analysts expect the secondary market to remain subdued this week due to the primary auction and the holiday break tomorrow.

The regulator stayed out of the market citing balanced liquidity in the market. The interbank rates closed at 7.95 percent due to improved market liquidity. The shilling lost ground against the US dollar to close Friday’s session at 103.15 from 102.85

About Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. You can reach him on: (020) 528 0222 or Email: [email protected]

View other posts by Juma Fred