Cut cost of consumer products, firms urged

Companies have been urged to reduce the cost of goods now that electricity charges have dropped significantly.

In his Jamhuri Day address, President Uhuru Kenyatta said that manufacturers, who are enjoying lower production costs due to cheap power, should pass the benefits to consumers.

“Our manufacturers are now assured of producing goods more cheaply. I want to remind them that this cost reduction is due to the investments by taxpayers, who like any other investor, are looking forward to a return.”

Mr Kenyatta noted that addition of 280 megawatts to the national grid this year will lower the cost of electricity by 30 per cent, hence help boost the economy.

The Kenya Electricity Generating Company has hooked the entire 280 megawatts from Olkaria geothermal plant to the grid, drawing the country closer to 5,000MW output target set for 2017.

Kenya has been dependent on hydro-electricity.

LARGEST WIND FARM

And in dry seasons, the country switches to the expensive diesel powered generators.

The government also plans cheaper off-peak electricity tariffs for industries from the first quarter of 2015, according to Energy Cabinet secretary Davis Chirchir.

The industrial consumers are expected to enjoy a discount of 40 per cent between 11pm and 5am. Firms consuming upto 15,000 kWh pay Sh14 per kWh while those above 15,000 kWh pay Sh8.70 during off peak.

Kenya is set to construct the largest wind farm in sub-Saharan Africa in addition to the geothermal plant in Olkaria.