Kenya Power has announced a reduction in electricity prices following a review of token prices by the energy provider.

 Comparing tokens purchased on February 25 and March 12 revealed a decrease in both the Value Added Tax (VAT) and Fuel Energy charges.

The adjustments have resulted in Kenyans receiving more tokens this month. For example, individuals purchasing Ksh300 tokens are now receiving an additional 0.05 units compared to what they received last month.

The recent drop in prices is attributed to cheap hydropower which resulted from the heavy rains witnessed last year. The strengthening of the shilling against the dollar also played a factor in the drop.

“Fuel Energy Charge is the added cost or rebates to the consumers as a result of fluctuations in world prices as well as fluctuations in the quantity of oil consumed by electricity generation. The fuel cost charge lags one month behind the actual price of the fuel.

“This money is collected by Kenya Power and all of it is passed on directly to electricity generation companies, who in turn pay fuel suppliers,” Kenya Power explained on its website.