KAM Welcomes 15% Reduction In Power Tariffs

Kenya Association of Manufacturers has welcomed the 15 percent reduction in power tariffs in the country. KAM says manufacturers shall enjoy a cost reduction of between Ksh 2.67 – 3.64 per unit of electricity.

“This is a significant milestone towards realizing our long-standing efforts to reduce power costs, boost local manufacturing, and consequently, investments in the sector,” said KAM in a statement.

Manufacturers have, in the past, raised concerns over the high cost of electricity in the country, which impacts the overall cost of production.

The Association applauds the government for taking action on this issue. The timing is especially apt as the economy is experiencing the impact of the COVID-19 pandemic, including rising costs, supply challenges, and lower purchasing power.

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The high cost of electricity has been attributed to various factors, including expensive Purchase Power Agreements (PPAs), high cost of fuel, multiple taxes and levies imposed on electricity bills, VAT and Fuel Cost Adjustment, as well as depressed demand growth.

“Achieving overall sustainable and stable policies on the cost, availability, and reliability of power is paramount to our economic growth. To fully gain from the benefits of this move, we must keep an eye on the urgent implementation of the second phase of the 15 percent reduction in power tariffs, as announced by H.E The President during last year’s Jamhuri Day celebrations,” said KAM.

Read More: Electricity Tariffs Slashed By 15%, GoK Gazettes The Directive