Kenyans have reacted angrily to the government’s decision to raise electricity prices, with many taking to social media to express their displeasure, while others have pledged to switch to alternative energy sources such as solar to avoid the rising costs.
In its first tariff review since July 2018, the energy regulator boosted basic power rates on Friday, raising them by up to 63% at a time when consumers are already struggling to keep up with rising prices for food, fuel, cooking gas, transportation, and other goods and services.
“The time is now for solar. One user on Twitter asked, “How can I import a complete solar unit?
“This is incorrect. Another person commented, “This judgment is deeply flawed and will cost our nation dearly.
The increased costs will affect not only domestic consumers but also business and industrial clients like manufacturers who had protested the price hike on the grounds that it would significantly raise their operating expenses. According to the Kenya Association of Manufacturers (KAM), depending on their individual tariffs and usage patterns, the new tariffs will result in an increase in the cost of energy for manufacturers of between Sh3.5 and Sh5 per unit, or 38%.
During a stakeholder consultation process before the new prices were authorized, KAM stated that “manufacturers have over time highlighted concerns over the high cost of power in the country, which impacts on the entire cost of manufacturing.”
The lack of accessible, trustworthy, high-quality, and sustainable power for the manufacturing sector prevents the nation from becoming a desirable investment location and, as a result, prevents it from industrializing, according to the lobby.
The increase in electricity prices coincides with the return of inflation, which accelerated in February to 9.2% after slowing for three straight months to reach 9% in January.