EPRA Increases Electricity Charges for Households 

Welcome to the Money News Roundup. Today, we cover EPRA’s increase in electricity charges for households. We also look at the Treasury’s search for funds to subsidise fuel prices.

EPRA Increases Electricity Charges for Households 

Kenyans will pay more for electricity in August after the Energy and Petroleum Regulatory Authority (EPRA) made three tariff adjustments, adding a combined Ksh4.7027 per kilowatt-hour (kWh).

As reported by the People Daily, the charges, published in the Kenya Gazette on August 14, comprise a Fuel Energy Cost Charge of Ksh3.51 per kWh, a Foreign Exchange Fluctuation Adjustment of Ksh1.1777 and a Water Resource Management Authority (WRMA) levy of Ksh0.015.

The adjustments apply to meter readings taken during August under the existing 2023 electricity tariff schedule.

The fuel charge accounts for the largest share of the increase and is based on electricity generated and purchased in July. EPRA noted significant differences in generation costs, with some isolated thermal stations recording substantially higher charges than geothermal plants.

The three adjustments alone will add about Ksh470.27 to a household consuming 100 kWh and Ksh940.54 for 200 kWh.

NSSF to Develop 1,000-Acre Mavoko Land Into Mixed-Use City

NSSF has revived plans to develop its 1,000-acre property in Mavoko, Machakos County, into a mixed-use city targeting residential, commercial, industrial, institutional and hospitality developments.

As reported by the Business Daily, the pension fund has invited developers to conduct a feasibility study, prepare a master plan and develop infrastructure and a pilot phase under an engineering, procurement, construction and finance (EPC+F) model.

NSSF first proposed 30,000 housing units on the land in 2012, before the plan was cancelled in 2013. A subsequent proposal for 60,000 low-cost houses in 2015 also failed to take off.

The land, valued at about Ksh39.4 billion based on current prices, comes as NSSF assets have grown to Ksh623.8 billion. Property investments account for Ksh38.08 billion, or 6.1% of total assets. The cost of the entire project is still not known.

Treasury Seeks Funds to Subsidise Fuel Prices 

The National Treasury is seeking additional funding to subsidise fuel prices as renewed hostilities in the Middle East threaten to keep global oil prices elevated ahead of Kenya’s 2027 General Election.

As reported by the Business Daily, Treasury Cabinet Secretary John Mbadi said the government is exploring funding options but did not specify whether it would seek a loan or additional budgetary allocation.

The move marks a reversal of President William Ruto’s 2022 decision to withdraw fuel subsidies, with the government instead relying on the Petroleum Development Levy to stabilise pump prices. However, the subsidy fund has been depleted following increased use amid the Iran war and disruptions in the Strait of Hormuz.

The government recently used cross-subsidisation to prevent petrol prices from rising to Ksh222.67 per litre in Nairobi, while diesel prices fell to Ksh217.86.

NEMIS Errors Leave Schools Millions Short in Capitation

An audit by Auditor-General Nancy Gathungu has exposed major discrepancies between learner numbers recorded in schools and those captured in the government’s National Education Management Information System (NEMIS), raising concerns over capitation funding.

As reported by the Star, at Kamagut High School, NEMIS recorded 694 learners against 938 in school records, leaving the school underfunded by Ksh10.62 million.

At St Mary’s School Yala, the system recorded 2,077 learners compared to 2,851 in school records, contributing to an estimated Ksh9.2 million funding shortfall.

Kenya High School had 1,556 learners in its records against 1,547 in NEMIS but received Ksh8.52 million less than its expected capitation.

Meanwhile, some schools were overfunded. Mama Ngina Girls in Mombasa had 115 more learners in NEMIS than its register, resulting in Ksh403,712 in excess funding.

The audit raises questions about NEMIS data accuracy and the risk of misallocating public funds.

Airtel and Starlink Launch Satellite-to-Mobile Service in DRC

Airtel Africa and Starlink have launched a satellite-to-mobile service in the Democratic Republic of Congo (DRC), making it the first African market where the technology is commercially available.

As reported by Capital Business, the service was launched on August 14 and allows Airtel customers with compatible Android smartphones to access SMS, WhatsApp and other light-data applications in areas without conventional network coverage, provided they have a clear view of the sky.

Customers can register for a free 30-day trial through the MyAirtel App before accessing the service through eligible data bundles.

Airtel said expansion to other African markets, including Kenya, will depend on regulatory approvals.