Former Mandera Senator Billow Kerrow has termed the move by Kenya power to raise the cost of power by 78 percent as economic sabotage.
Speaking during an interview at KTN on Thursday, Kerrow said the move will impact the economy negatively.
"On these new tariffs, I think Kenya Power is now engaged in the level of an economic saboteur, frankly, "he said.
Kerrow said power is used by everyone and thus it affects the cost of living.
"If there is anything that will affect the economy it's power, it underpins everything not just manufacturing but the entire cost of living because everyone uses power," he said.
He noted that Kenya has the most expensive power costs compared to other countries in Sub-Saharan Africa all the way from Ghana to South Africa and Egypt.
Kerrow said the cost of electricity in the country affects entrepreneurship as many are afraid to start businesses that need power due to the cost involved.
" It is one of the reasons we have lost competitiveness in our industries, mainly because of the cost of production. Many people get discouraged starting a business that involves the use of power because of the price of power," he said.
The power company is currently reviewing electricity tariffs that will see Kenyans who consume less than 30 units a month dig deeper into their pockets to meet their power needs.
Kenya Power is seeking the approval of the energy regulator (Epra) to increase the cost of a unit of power for the usage of fewer than 30 kilowatts(kWh)) per month to Sh28.01 a unit.
Kenyans will pay 35.3 per cent more than the current Sh20.70 for every unit of power for those who use 30 kilowatts(kWh)) per month.
Those consuming 50-kilowatt a month will pay Sh36.92 a unit from the current Sh20.70, representing a 78.3 percent jump in electricity costs for households.
The lighting company has also reduced the threshold for accessing the monthly power subsidy equivalent to a 24.1 percent discount from 100 kilowatt hours to the proposed 30 units.
This means that households that consume more than 30 units a month will not be entitled to the subsidy they have enjoyed since 2018, making their power bills goes up.
These will be the new tariffs if the energy regulatory authority chooses to approve the proposed tariffs by the lighting company.
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Category: Business
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