The energy regulator epra has reduced the fuel cost fee (FCC) from Sh7.09 per unit to Sh6.36 per kilowatt-hour (kWh). The FCC, which Kenya Power collects on behalf of the pricey thermal power suppliers, is the single largest variable expense in consumer billing that is modified monthly.
Additionally, Epra reduced the foreign exchange rate fluctuation component from Sh1.48 per unit to Sh1.41 per unit.
The cumulative impact of the cuts has led to a 5% decrease in the price per unit of energy, with lifeline customers who previously paid Sh20 now expected to pay Sh19.
This breaks the pattern of two consecutive months of rising power costs to October.
A price increase in November would have brought the cost of the good to its highest point in over ten years.
Epra cut the cost of gasoline, kerosene, and diesel by Sh1 and Sh2 per litre, respectively, in its assessment for the schedule from October 15 to November 14. In Nairobi, the price of gasoline per litre is now Sh178.3, Sh163 for diesel, and Sh146.94 for kerosene.
The Epra reversed the cuts in power tariffs announced in January by the administration of former President Uhuru Kenyatta in September, dealing consumers a double blow in the wake of rising fuel prices.
Consumers will be greatly relieved by the reduced November prices at a time when the cost of living has risen to its highest level in 64 months.
High prices for food, transportation, and home goods have driven inflation up even further to a 5.4-year high of 9.6%, underscoring the suffering families continue to experience as their standard of living rises.
