Kenyans should anticipate much lower token costs as the country gets ready to start importing energy from Ethiopia.
Following a two-week trial period, Kenya will add 200MW to the national grid with effect on November 21, 2022.
According to a statement from a ministry of energy official, “We are conducting pre-commissioning tests that will open the door for the injection of 200 MW into the national grid.”
Kenya’s hydroelectric production has been low due to a protracted drought, so the Kenya Power and Lighting Company (KPLC) has started using geothermal energy as a backup.
KPLC had to increase the price of tokens as a result of the high cost of producing geothermal energy, which hurt a sizable percentage of the Kenyan people.
The current importation agreement between KPLC and Ethiopian Electric Power (EEP) was signed in July 2022, when Uhuru Kenyatta was president.
Geoffrey Muli, the acting CEO of KPLC, announced that “we will start commercial operations on November 1, 2022, following joint testing and commissioning of the interconnector” at the time the agreement was signed.
“The negotiated tariff is competitive and would allow Kenyans to obtain power at a lower cost,” Muli continued.
Token price reductions will be very much appreciated by Kenyans, the majority of whom are trying to make ends meet because to the high cost of living in the nation.
Since electricity is a significant expense for the nation’s manufacturing sector, lower rates will directly affect production costs, which will in turn lower those costs and lessen the upward pressure on food prices.
The agreement is a huge win for EEP and the Ethiopian economy as Kenya will join Djibouti and Sudan as the third nation to purchase electricity from Ethiopia.
Kenya will spend about Ksh10 billion annually on Ethiopian electricity imports.