As Kenya prepares to begin importing energy from Ethiopia, citizens may look forward to much reduced token prices.
Effective on November 21, 2022, following a trial period of two weeks, Kenya will add 200MW to the national grid.
“We are carrying out pre-commissioning tests that will pave way for the injection of 200MW into the national grid,” a statement from ministry of energy official revealed.
Due to a lengthy drought, hydroelectric production in Kenya has been poor, thus the Kenya Power and Lighting Company (KPLC) has been turning to geothermal power as a backup.
As a result of the high cost of producing geothermal energy, KPLC has had to raise token prices, which has harmed a large portion of the Kenyan population.
The current importation arrangement between KPLC and Ethiopian Electric Power (EEP) was inked in July 2022, during the presidency of Uhuru Kenyatta.
“We will start commercial operations on November 1, 2022, upon joint testing and commissioning of the interconnector,” KPLC acting CEO Geoffrey Muli announced back then during signing of the deal.
“The agreed tariff is competitive and will see Kenyans enjoy power at a lower cost,” Muli added.
Token price cuts will be extremely welcome news to the majority of Kenyans who are struggling to make ends meet in light of the country’s high cost of living.
Electricity is a major cost for the country’s manufacturing sector, so lower rates will have a direct impact on production costs, lowering those in turn and reducing the upward pressure on food prices.
The arrangement is a tremendous boon for EEP and the Ethiopian economy, as Kenya will become the third country to buy electricity from Ethiopia after Djibouti and Sudan.
Electricity imported from Ethiopia will cost Kenya about Ksh10 billion each year.
