Kenya Power Consumers will have to pay more to get connected to the national electricity grid following Treasury’s decision to end a multi-billion-shilling subsidy that has kept charges at half the true cost of the service. Treasury secretary Henry Rotich told the Business Daily that the government had withdrawn billions in support to the power distributor, signaling a possible doubling of the connection fees. “We have not set aside any money for the Kenya Power subsidy in the 2014/15 financial year,” said Mr Rotich. “We were not going to finance this service on a sustainable basis.” Electricity distributor Kenya Power had been bearing the additional cost of connections, but last year got a partial relief when Treasury introduced a Sh2.7 billion subsidy to prevent a hike in the connectivity fee from Sh35,000 to at least Sh75,000.
Posted on: Mon, 14 Jul 2014 09:12:17 +0000
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