Kenya power increase token prices
Kenya power increase token prices
Kenya Power has raised token fees in their most recent analysis of the price of electricity.
The source conducted a spot check and found that the difference in token purchases made on January 3 and January 11, 2024, indicates that the adjustment was implemented last week.
Last week, Kenyans who purchased tokens worth Ksh250 received 8.87 units whereas on Wednesday, the same amount only accounted for 7.82 units.
In a breakdown, the change in token value was occasioned by the sharp increase in the forex adjustment charge which rose from Ksh28.11 to Ksh50.53.
The forex adjustment is the forex charge deducted when buying tokens. It is based on the variation of hard currencies against the Kenyan Shilling.
In the past weeks, the dollar has dominated the Kenyan Shilling with the currency currently trading at an average of Ksh159.
Value Added Tax (VAT) was decreased from Ksh29.18 to Ksh26.15 on the Ksh250 transaction. On the pre-paid token units, Kenya Power levies a 16 percent value-added tax (VAT) on various components, including fixed charges, usage, fuel cost, FX adjustments, demand adjustments, and inflation adjustments.
It’s interesting to note that other charges also fell: the Energy and Petroleum Regulatory Authority (EPRA) price was Ksh0.7 and dropped to Ksh0.62, while the fuel energy charge decreased from Ksh35.31 to Ksh33.85.
There was also a decrease in the Water Resources Authority (WRA) price, which was Ksh0.14 to Ksh0.11, which is a tax taken for energy purchased from hydropower facilities.
Additionally, the cost of the Rural Electrification Programme (REP) decreased to Ksh6.48 from Ksh7.35. The program responsible for carrying out rural electrification projects is charged.
This is an additional five percent tax on the price of the power that a consumer uses.
Kenya Power states on its website that the Rural Electrification Authority (REA) is given the responsibility of carrying out the rural electrification initiatives.
EPRA lowered the price of gasoline, diesel, and kerosene by Ksh5, Ksh2, and Ksh4.01 in the December review, respectively.
More adjustments will be made in January to account for any changes in the market, should fuel prices rise or fall.