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Kenya’s fuel and electricity prices are set for a fresh increase on proposed changes to the law to double a levy charged on the two products to support the operations of the sector regulator.
The country’s Statute Law (Miscellaneous Amendments) Bill, 2023 has proposed to amend the Energy Act of 2019 by doubling Energy and Petroleum Regulatory Authority’s (Epra) levy to a maximum of 1 percent from the current ceiling of 0,5 percent.
“Delete the phrase ‘half of a (percent)’ appearing in paragraph (a) (of Section 20(1) of the Act),” says the Bill read by Majority Leader in parliament Kimani Ichung’wah.
Kenyans are currently paying Ksh0,25 per litre on petrol, diesel, and kerosene as a petroleum regulatory levy. They are also paying Ksh0,08 on each unit of electricity as Epra Levy.
In the financial year to June 2021 for instance, Epra netted Ksh1,2 billion (US$7,9 million) from the petroleum levy compared to Ksh1,1 billion (US$7,2 million) in the previous year, an increase of 16,5 percent.
It also earned Ksh236 million (US$1,55 million) from the electricity levy during the period, down 10 percent from Ksh263 million (US$1,72 million) in the previous year.
During that financial year, Epra earned total revenues amounting to Ksh1,51 billion (US$9,9 million), meaning that the two levies, which accumulated to Ksh1,45 billion (US$9,51 million) accounted for 96 percent of its revenues.
“We did not receive any government support during the period,” said Epra.
Because it relies on the levies, the energy regulator is usually hit hard by any reduced demand for fuel and electricity because it directly reduces its revenue collections. — The East African.
Online Reporter