New e-Mobility Tariff to Push up Power Cost

Kenya intends to use the recently enacted e-mobility tariff as leverage to encourage the adoption of electric cars.

As of April 1, the new e-mobility tariff is Sh16 for energy usage up to 15,000 kWh during peak hours and Sh8 per kWh during off-peak hours.

Energy and Petroleum Regulatory Authority introduced special tariffs to promote both clean cooking and electric mobility to grow electricity demand and promote the global agenda on climate change and sustainability.

“(There is) introduction of Bulk Tariffs applicable to SMEs, and commercial and industrial customer categories to encourage retail electricity business which is expected to increase efficiency and improve customer experience. (There is also) introduction of Time of Use tariff for SMEs at half the energy charge to promote extended business operations,” the regulator said.

The total amount is in addition to the existing taxes and fees that are included in the price of energy. The price for e-mobility is also set until 2025 or 2026.

E-mobility was one of the important areas that Kenya Power had identified as helping to maintain profitability and increase shareholder value.

The utility firm intends to capitalize on new business opportunities as part of its strategic plan for 2023–2028.

Increasing the number of Kenyans who switch to electric cooking, energy storage, and the electrification of several other sectors to support decarbonization are additional areas targeted for new development.

Kenya Power has also made plans for transitioning its fleet of vehicles to electric power.

Kenya’s installed capacity for producing electricity is 3,321 MW.