Low Water Levels To Push Power Cost Up For Kenyans

Households and enterprises should expect high power costs in the coming months due to low water levels at the country’s largest electricity generation reservoir.

Speaking to journalists on Friday, Energy and Petroleum Cabinet Secretary Davis Chirchir said water levels at Masinga dam have dropped to 1,037 meters above sea level. Attributing the drop to the ongoing drought, Chirchir said should the trend persist, the government will be forced to use expensive diesel to generate power. The move will see the extra cost passed to consumers in power bills.

“We might get power slightly expensive because we are ramping the diesel generation more than we ordinarily should be doing. Unless we look at climate change issues, hydropower generation may not present a future for us,” said Chichir.

The CS expressed fears that the government may end up suspending operations at the dam, should the low water levels carry on till March.

“In the likely event that we get near the levels of 1,036 meters above sea level at the Masinga Dam, we may have no alternative but to stop the machines in line with our standard operating procedures and best practices in hydropower plant operation and maintenance,” he said.

Hydropower remains Kenya’s cheapest source of electricity contributing around 800 megawatts (MW). Masinga dam, which straddles the border of Embu and Machakos counties, produces 40 MW daily from its 2 units ( each 20MW).

During dry spells, as is currently the case, water levels at the dam plummet cutting hydropower output and triggering the use of expensive-diesel-generated electricity. This often raises power bills for homes and businesses with the situation expected to be worse this year, given the high cost of diesel and the wiping out of the 15 percent electricity subsidy by the Kenya Power and Lighting Company (KPLC).

KPLC winded up subsidy on electricity on January 1, 2023, citing a negative liquidity ratio. KPLC Managing Director Geoffrey Muli said the subsidy, which was initiated by the former administration, would not be extended beyond its expiry date of December 31.

The move saw homes consuming 50 kilowatts per hour (kWh) pay 1,319.61 shillings in January up from 1,314.42 shillings in December.  In addition, the cost f buying  100kWh increased to 2,639.22 shillings in January from 2,628.85 shillings in December. This highlights the difficult times that households and businesses are facing amid inflating prices of other commodities.

KPLC is also planning to increase electricity prices by up to 78 percent from April, a move that will see households consuming 50 units a month pay 1,846 shillings from the current 1,035 shillings while homes and businesses using 100 units will part with 3,692 shillings up from 2,638 shillings. This proposal is awaiting approval.

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