Kenya Power To Start Charging In Dollars And Euros

Kenya Power and Lighting Company (KPLC) will start charging some of its customers in dollars and euros to “shield itself against the weakening shilling.” The Kenyan shilling has been weakening and hit the lowest in history on Monday against the US Dollar.

KPLC wants clients whose revenue is in dollars and euros to pay for their power costs using the same foreign currency instead of the Kenyan shilling. The move is set to spark some protests from a section of power consumers who will feel targeted.

“To mitigate against the impact of the fluctuation in foreign exchange rates that have continued to adversely affect the financial performance, we are pursuing several initiatives including allowing a section of our customers whose income is in foreign currency (USD and Euro) to settle their electricity bills in these currencies,” said Kenya Power in a statement.

Related Content: Kenya Power To Raise Electricity Tariffs By 117%

According to Kenya Power, receiving payments in dollars and euros will help Kenya Power avoid exchange losses for wholesale electricity it buys from generators that are based on hard currencies. Energy Petroleum and Regulator Authority is yet to comment on the issue.

KPLC has been pushing for electricity costs to go up by at least 117 percent starting next month. The request is before the Energy and Petroleum Regulatory Authority (EPRA) with those close to the matter saying EPRA will accept the request.

In October last year, Kenya Power presented to EPRA the request to review tariffs upwards and sustain them in place for the next three years from April 1, 2023. With the electricity tariffs up by 117 percent, Kenyans will simply have to pay through the nose for tokens.

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Kenya Power enjoys a monopoly in Kenya with no competitors against them.