- Manufacturers seek a 50% cut in electricity tariffs
The Kenya Association of Manufacturers (KAM) have appealed to the Kenyan government to cut electricity tariffs by 50% for consumers and enterprises. The association called for a further reduction of electricity tariffs despite the recommendation of a 33% reduction by the Presidential Task Force on the Review of Power Purchase Agreements (PPAs).
The Chairman KAM, Muchai Kunyiha, argued that manufacturers pay more for electricity consumption losing a competitive edge over other manufacturers in the region due to the high cost of production. “In this spirit, it is imperative that there is a new focus on reviewing the taxes, levies, and charges on power bills for manufacturers to reduce the overall cost of power,” Kunyiha said.
However, the association welcomed the recent move by President Uhuru Kenyatta in reviewing PPAs to reduce the cost of electricity for consumers. “The recommendations provided will play a critical role in lowering the overall cost of electricity, particularly in reducing system losses and aligning Power Purchase Agreements to the Least Cost Power Development Plan,” Mr Muchai added.