By NEVILLE OTUKIMore by this AuthorKenya plans to start fixing the wholesale prices of electricity offered to power producers in shillings as it seeks to reduce exposure to volatile foreign currencies. Currently, power purchase agreements (PPAs) between electricity distributor, Kenya Power and electricity producers come with fixed tariffs that are denominated in US dollars. Kenyan consumers currently pay a forex adjustment levy through their bills which is reviewed monthly and is linked to foreign currency expenses incurred by Kenya Power and electricity producers. The shilling-denominated deals promise to wipe out forex levy, easing consumers’ burden. This has translated to an increase in forex levy in power bills.

Source: Daily Nation July 11, 2017 18:11 UTC