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Tough times ahead of Kenyans as Adan Duale push for more expensive electricity and fuel

3,242 views · Published 7 March 2018 · 2:11 · Indexed 10 November 2026

Channel: KTN Entertainment · 2018 · News & Politics

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Kenyans should brace themselves for higher energy bills this year as the National Treasury tries to grow its income. The Government has lined up a series of new levies as it tries to bridge its budget deficit.

The new revenue streams offer a glimpse of hope to Treasury, especially when the country is grappling with a debt of about Sh5 trillion. The Government has resorted to imposing fresh taxes across sectors, with energy being its latest target. Petroleum products Among the levies that will see your energy bills go up are the reintroduction of 16 per cent value added tax (VAT) on petroleum products.

There is also a 0.5 per cent Energy Regulatory Commission (ERC) fee on petroleum and electricity and a 2.5 per cent royalty fee charged to geothermal power producing companies that is likely to be passed to consumers. According to the Bill sponsored by Leader of Majority in the National Assembly Aden Duale, the royalties will be shared by communities and the national government.

This is part of the Energy Bill recently tabled at the National Assembly and whose proposals will result in more pain for consumers in increased electricity bills if passed into law. Currently, electricity consumers pay three cents per unit and 12 cents per litre of diesel and petrol as ERC levies. 



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