Kenya Power and Lighting Company pays power producers in dollars, the company forwards any additional costs incurred during electricity production such as cost of fuel and fluctuations in forex exchange. A total of the difference in amount incurred for a particular month is divided by the total number of electricity units produced to get the average fuel and forex charge payable per every unit.
Due to the drop of the Kenyan shilling to the dollar in the forex trade. A Kenyan paying his/her electricity bill is highly to incur an increase in his monthly payment of electricity bill this month.
I think it is high time we think out the box. We try to explore other sources of power. That are eco -friendly, Solar energy can be considerably alternative. It is more cheap compared to the electricity provided by KPLC.
Since the Kenyan shilling value seems to deteriorating in the forex trade, when compared to the dollar. Indicating that the electricity charges are not declining any time soon. They will continue rising.
By: Mikey Mugutsu