•Kenyans paying up to seven different taxes on electricity bill.
•Energy CS Charles Keter however says all taxes are justified, adding any adjustments will affect electricity projects in the country. A Kenya Power prepaid user loads her metre in Kangemi Estate, Nairobi/FILE Energy Cabinet Secretary Charles Keter was yesterday put to task over the surging electricity bills with senators proposing a reduction in the number of taxes levied.
The Energy Committee chaired by Nyeri Senator Ephraim Maina said Kenyans are burdened by ever rising power bills and the numerous taxes and levies.
A standard electricity bill in Kenya has an average seven taxes, which accounts for almost half of the amount of electricity paid for.
They include the Fuel Energy Charge (FEC) related to fuel oil used by thermal plants operated by KenGen and Independent Power Producers, isolated Rural Electrification Programme (REP) levy and Foreign Exchange Rate Adjustment (FEAFRA).
Consumers are also pay for inflation adjustment, VAT, Energy and Petroleum Regulatory Authority (EPRA) levy and Water Resources Management Authority (WRMA) levy.
For example, a domestic user consuming less than 100 kilowatt-hour, this month, will pay Sh10 for a unit of power, Sh2.43 FEC, 0.6 forex adjustment, Sh0.32 inflation adjustment, 0.023 WRMA levy, Sh0.03 goes to EPRA, while REP will take five percent of revenue from unit sales.
VAT is currently at 14 per cent with the total unit cost coming to Sh15.75.
For a house in rural Kenya that consumes about 50 units a month, on lighting of about two-three hours a night, will spend an average Sh787.32 on electricity.
A purchase of Sh300 units made this week gave 19.05 kilowatts-hour, tokens valued at Sh190.56.
Sh109.44 went into taxes among the Sh35.54 as VAT, Sh46.29(Fuel Energy Charge), Sh11 (Forex Charge), Sh9.52 (Rural Electrification Programme) and Sh6.09 (Inflation).“Kenyans including myself are complaining about electricity billing. Kenyans are suffering,” Maina said asking CS Keter to give an insight on the taxes and levies.Nominated Senator Petronila Were proposed the reduction of the REP levy from five per cent to one per cent, until post-Covid-19 when the economy bounces back.“How can we relieve the pain on Kenyans, reduce it (REP) to one per cent until the economy is back then we can take it back to five per cent,” she said.Keter however defended all the taxes and levies saying they are justified.“There is no intention of over billing. Kenya Power is a listed company run above board,” Keter said.On reduction of levies, mainly […]