Power distributor Kenya Power has said that consumers will continue paying lower power bills as the reliance on diesel generated electricity has significantly gone down. Kenya power has been accessing cheaper hydro generated electricity generated from the dams that have been operating at full capacity.

Last month, drop in fuel cost and reduced reliance on diesel generated power resulted to reduction of electricity cost per unit by up KES 1.30 per unit.

According to Kenya Power Chief Executive Eng. Joseh Njoroge, fuel cost and foreign exchange rates are two variables that greatly affect the power bill. Njoroge says fuel prices have dropped in the last few months reducing the cost of  diesel generated electricity by significant margins.

"Reduction in fuel charge and stable foreign exchange rates will translate to low VAT and other statutory charges making the power cost per unit go lower than what consumers paid last month." Njoroge said.

The power distributor has secured a  KES 16.8 billion (USD 200 million) loan deal from the World Bank‘s International Finance Corporation (IFC) to upgrade powerlines, built new sub-stations  and automate its systems. Kenya Power has already received the first tranche of KES 4.2 billion (USD 50 million) that will be used within Nairobi metropolis to upgrade the dilapidated grid.