Kenya Power Endorses Proposal to Introduce Street Lighting Levy for Electricity Consumers

Kenya Power Endorses Proposal to Introduce Street Lighting Levy for Electricity Consumers

  • Kenya Power and Lighting Company (KPLC) backed the introduction of the Street Lighting Infrastructural Support Levy (SLISL)
  • The utility company's managing director, Joseph Siror, noted that the implementation of the levy would reduce recurring disputes with counties over unpaid bills
  • This came after the National Assembly's Energy Committee directed the Energy and Petroleum Regulatory Authority to impose the levy on electricity consumers

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering profound insights into Kenyan and global economic trends.

Kenya Power and Lighting Company (KPLC) has endorsed the proposed Street Lighting Infrastructural Support Levy (SLISL).

Kenya Power MD Joseph Siror speaks at a past event.
Kenya Power MD Joseph Siror said the levy will be less than 10 cents per unit. Photo: KPLC.
Source: Facebook

How street lighting levy will be charged

KPLC managing director (MD) Joseph Siror argued that SLISL should be set at less than 10 cents per unit to prevent energy prices from rising.

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The utility company noted that the levy would fund street light installations in all 47 counties and reduce conflict with devolved units over unpaid bills if passed into law.

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According to KPLC, the levy could be a driver for stimulating economic growth nationwide.

Kenya Power accused the counties of failing to settle bills, and as such, it noted the levy would curb recurring disputes with the devolved units.

"The company has stopped billing county governments directly and is now seeking approval from the Ministry of Energy and Petroleum (MOEP) for any county street lighting projects. The MOEP has approved the use of national street lighting program funds for these projects. The company is also asking for the national government's help to ensure that county governments settle these payments," KPLC stated in its 2024 annual report.
KPLC boss Joseph Siror.
Kenya Power revealed it had accumulated unpaid bills worth KSh 808m from street lighting projects. Photo: KPLC.
Source: Twitter

Why MPs want Kenyans to pay street lighting levy

Implementation of the Street Lighting Infrastructural Support Levy was mandated by the Energy and Petroleum Regulatory Authority (EPRA) by the National Assembly's Energy Committee.

Taxpayers will be further burdened if the committee's report is accepted and electricity users nationwide begin to pay the fee.

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Members of Parliament (MPs) stated that the money raised from the tax will be used to lower the costs paid by KPLC by funding street lighting projects across the nation.

This came after KPLC incurred unpaid street lighting bills amounting to KSh 808.6 million.

"After this report is adopted, EPRA reviews pass-through charges and introduces a Street Lighting Infrastructural Support Levy as a minimum pass-through fee in all categories of electricity bills within six months," the committee recommended, as reported by Business Daily.

Why Kenyans are getting fewer tokens

Elsewhere, KPLC clarified why some Kenyans were getting fewer tokens than other consumers, yet they spent the same amount of money to buy tokens.

KPLC stated in a public notice posted on its official social media accounts that the tariff category that clients are assigned determines the quantity of units they are given.

Customers who regularly use fewer than 30 units per month for three consecutive months are eligible for the Lifeline Tariff, it explained.

It stressed that customers are transferred to a higher tariff category, which results in a higher cost per unit and fewer tokens for the same spending, if their average electricity use surpasses 30 units over three billing periods.

Proofreading by Asher Omondi, copy editor at TUKO.co.ke.

Source: TUKO.co.ke

Authors:
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Japhet Ruto (Current Affairs and Business Editor) Japhet Ruto is an award-winning TUKO.co.ke journalist with over eight years of working experience in the media industry. Ruto graduated from Moi University in 2015 with a Bachelor’s Degree in Communication and Journalism. He is a Business & Tech Editor. Ruto won the 2019 BAKE Awards’ Agriculture Blog of the Year. He was named TUKO.co.ke's best current affairs editor in 2020 and 2021. In 2022 and 2023, he was TUKO.co.ke's best business editor. He completed the Experimenting with new formats and Advance digital reporting curriculum from Google News Initiative. Email: japhet.ruto@tuko.co.ke.

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