Kenyans sets for higher electricity bills at the end of the Christmas festivities courtesy of weakened shilling.
Kenyans electricity prices
All meter readings will be liable to a foreign exchange (FX) adjustment of 69.77 cents per unit from 55 cents. This is according to published schedule of tariffs for month of December by the Energy and Petroleum Regulatory Authority (EPRA).
This will be the second highest FX adjustment on electricity bills in the 2020 calendar year. This after October when the adjustment stood at a Ksh.1.07 high per unit of power consumption.
The foreign exchange fluctuation adjustment (FERFA) effected on a monthly basis. This by the energy sector regulator is related to transitional costs arising from power purchases made in foreign currency.
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The ongoing depreciation of the local unit has instilled pain on Kenyans. Since the pricing of import depended goods and services pick up.
In contrast, the shilling had opened the year on a strong note prior to the advent of the COVID-19 pandemic. This with the resilience carrying gains for Kenyans in terms of costs.
For instance, across February and March, the FERFA costs had fallen into negative territory. This meant electricity users received refunds from a strengthened shilling.
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The Kenya shilling shed an average 10% of value against the US dollar with the registered hit being greater. This on other leading world currencies such as the Euro and British Pound.
The weakening of the local unit largely attributed to unmatched dollar demand. This because of foreign currency inflows shrink against a resumption in imports demand following the easing of COVID-19 restrictions.
A further weakening is expected to extend the pain on Kenyans. This due to costs of goods such as fuel and motor vehicle imports pick up.