EPRA Increases Cost of Electricity, Effective August 2024

Kenyans will now pay more for electricity after an announcement by the Energy and Petroleum and Regulatory Authority (EPRA) that saw an increase in the fuel cost charge and the forex fluctuation charge. 

Kenyans will now pay Ksh3.48 as the fuel cost charge - up from the Ksh3.25 per unit that consumers paid in July 2024. For the forex charge, the cost will increase from Ksh98 cents to Ksh1.17 per unit of electricity. 

For perspective, a consumer buying 100 units will now pay Ksh2,877, up from Ksh2,832 they would pay in July EPRA. 

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"Notice is given that all prices for electrical energy specified in Part II of the (Scheduled of Tariffs, 2023) will be liable to a fuel energy cost charge of plus 384 Kenyan cents per kWh for all meter readings to be taken in August, 2024," said EPRA in a notice Friday. 

This increase, driven by escalating fuel energy costs and foreign exchange fluctuations, marks the second consecutive month of rising electricity prices. 

In June, EPRA announced an increase in the fuel Energy Charge from Ksh3.52 per unit  to Ksh3.59 and the Foreign Exchange Rate Fluctuation Adjustment (Ferfa) rose from 97 cents to Sh1.76 per unit. The two costs saw an increase in electricity bills which has continued with the latest EPRA price review. 

Read also: What the Nullification of Finance Act 2023 Means for the Housing Levy & Other Tax Laws

KRA Urged to Clarify New Tax Payments

Following a Court of Appeal decision that ruled the Finance Act, 2023 unconstitutional, the Federation of Kenya Employers (FKE) has requested an "urgent clarification" from the Kenya Revenue Authority (KRA) regarding the status of July tax payments. 

FKE expressed concerns that KRA's delay in updating its systems to reflect the court's ruling will prevent taxpayers, including its members, from making required tax payments.

According to FKE, August 9, 2024, was the last day to remit the July 2024 taxes and failure of KRA updating its systems could mean that taxpayers may face penalties. 

On Wednesday, July 31, the Court of Appeal ruled that the Finance Act 2023 is invalid and unconstitutional after a number of issues were raised against the Finance Act of 2023, including the introduction of a housing tax, a large increase in fuel VAT, and other contentious policies.

Some of the taxes introduced by the Finance Act 2023 were also declared null and void. The contentious housing levy, however, was unaffected by the ruling since Parliament had created a separate law, the Housing Levy Act of 2024 to anchor its operationalisation. 

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