By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: Tariff discounts costs Kenya Power Sh2 billion
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > Business > Tariff discounts costs Kenya Power Sh2 billion
Business

Tariff discounts costs Kenya Power Sh2 billion

new5nuke
Last updated: January 23, 2023 7:18 pm
new5nuke
2 years ago
Share
SHARE

Kenya Power lost Sh2.1 billion in the 15 percent tariff discount implemented last year as other State-owned firms in the electricity sector refused to lower their charges as agreed with the government.

The revenue loss has been disclosed by the Auditor-General in its report on Kenya Power’s financial statements for the year ended June 2022.

Kenya Electricity Generation Company (KenGen), Kenya Electricity Transmission Company Limited (Ketraco) and the Geothermal Development Company Limited (GDC) were the companies that were to reduce their billing to make the tariff cut a reality.

Kenya power substation at Olkaria
A power substation at Olkaria

Read: Odinga responds on Ruto’s allegations

They however did not keep their end of the bargain, leaving Kenya Power to implement the tariff cut while absorbing the loss.

“KPLC implemented the tariff reduction from January 2022 but the other agencies did not implement the cost reduction measures as per respective commitments which were estimated to translate to Sh2.1 billion,” the government auditor said.

The Sh2.1 billion discount withheld by the State-owned firms has exposed Kenya Power to a wider liquidity gap with the utility liquidity position deteriorating in the review period.

READ MORE  Energy CS appoints new Ketraco boss

Given the revenue hit from the subsidy on electricity tariffs, the government ended the initiative at the end of December 2022 on the recommendation of the International Monetary Fund (IMF).

The January tariff cut resulted in an annual loss in revenue of Sh26.3 billion leaving Kenya Power with a negative working capital of Sh47.8 billion at the end of June 2022, albeit an improvement from Sh69 billion in June 2021.

Super petrol price rises by Sh2
The state has unveiled a proposal to revitalize local leather production.
Gucci Sales To Fall By 20% Due To Asia Slowdown
Treasury sets cash, hiring limits in spending shocker
Companies Linked to KSh 25 Billion Cooking Oil Scandal
Share This Article
Facebook Email Print
Previous Article Odinga answers Ruto’s claims on Chebukati murder plot
Next Article MPs storm out of meeting in protest
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • Woman stabs husband to death in Kisumu
  • Mpox: Two people dead as Mombasa intensifies surveillance amid rising cases
  • Singer Bella Thorne claims colleague Charlie Puth turned on her for not sl33ping with him
  • Son of Mexican Drug Lord ‘El Chapo’ agrees to cooperate as he pleads guilty in US
  • Aston Villa pre-season guide: Fixtures and streaming information

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?