New Governors' Demands That Could Increase Power Prices by 30%

Hello Moneymakers, Washington here. In this newsletter, we are covering the stalemate between Kenya Power and county governments over a potential 30% increase in power bills, KRA’s Ksh2 trillion revenue in less than a year, and the Kenyan government’s formal tariff request to the US

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Governors Demand Payment for Wayleaves Despite Kenya Power Warning

The Council of Governors has demanded that Kenya Power be compelled to remit outstanding wayleave payments to the county governments that were accrued before 2019.

Governors, represented by Marsabit County chief Mahmoud Ali, made the demand while appearing before the Senate's Energy Committee on Thursday, May 8. This is even after Kenya Power warned that paying wayleaves to counties would result in a 30 percent increase in power bills for Kenyans.

Equally, the county bosses demanded that Kenya Power and other government institutions be compliant in the payment of land rates.

The county chiefs also want the utility firm to disclose the revenues that it has collected from telecommunication companies that rely on its poles for connecting Wi-Fi across the country.

"CoG recommended the requirement of formal intergovernmental agreements before any new street lighting projects are rolled out, and Counties are also calling for part of their government allocations to be ring-fenced specifically for electricity payments, to ensure essential services are not disrupted due to financial disputes," read the statement in part.

Why This Matters: Counties and Kenya Power have been in dispute over the outstanding payments of electricity bills, wayleaves, and land rates. Notably, Kenya Power cautions that the demands of the county bosses will see Kenyans pay the hefty price through an increase in power bills.

"Kenya Power has over 319,000 kilometres of power lines across all 47 counties. The introduction of wayleaves on power lines will impact retail tariffs. Under the proposal to charge wayleaves on electricity infrastructure at a cost of Ksh200 per meter, this translates into Ksh63.8 billion per year.

"This is approximately 30% of the energy sector's revenue requirements, which must be recovered from the monthly electricity bills. The overall impact is that electricity will become unaffordable to a majority of Kenyans." Kenya Power Managing Director Joseph Siror warned in March.

KRA Hits Ksh2 Trillion in Revenue Collection

The Kenya Revenue Authority announced that it had surpassed the Ksh2 trillion mark in revenue collection by the end of April 2025.

In a statement on Thursday, May 8, the taxman revealed that it had collected Ksh2.112 trillion against a target of Ksh2.189 trillion covering July 2024 to the end of last month.

According to the taxman, despite not meeting its target, the collection was a 6.1 per cent growth from the collection recorded during a similar period in 2024.

KRA is aiming to collect Ksh2.668 trillion by the end of the financial year and has put in place tax compliance measures, including the roll-out of the Electronic Rental Income Tax System (eRITS) for landlords.

“To further improve tax compliance and convenience for landlords, the Electronic Rental Income Tax System (eRITS) was recently rolled out,” read the statement in part.

“ This digital platform enables landlords and property owners to seamlessly compute, file, and pay Monthly Rental Income (MRI) tax. It also includes property management tools such as property registration and tenancy management, providing a comprehensive, user-friendly experience on a single platform.”

Also Read: KPLC Warns Kenyans of a Huge Increase in Electricity Bills Over City Hall Standoff

Kenya Formally Appeals to US Over Trump’s 10% Tariff

Kenya has formally appealed to US President Donald Trump after his earlier decision to impose a 10 per cent tariff on Kenyan goods.

As reported by the Business Daily, the government, through the Ministry of Trade, reached out to the Office of the United States Trade Representative, which is reported to have positively received the appeal.

Trade CS Lee Kinyanjui noted that the move was necessary as the country seeks to boost trade and make the US more accessible for Kenyan goods.

"We have appealed against that 10 per cent [tariff] because we are not at the same level as many developed nations. Conversations are ongoing,” he stated.

Authorities Warn Motor Vehicle Owners of Rise in Theft

The Directorate of Criminal Investigations (DCI) has cautioned motorists over a surge in motor vehicle theft across the country.

According to a report by Nairobileo.co.ke, 28 individuals have been arrested in recent months, with authorities highlighting that the criminals are targeting vehicles in car parks. Additionally, Kenyans running car hire businesses are being targeted in the new trend.

Consequently, Kenyans were advised to install anti-theft devices and park vehicles in secure locations. Those with car hire businesses were also encouraged to verify details of their clients.

“Collaborating with the DCI Headquarters’ Operation Action Team (OAT), the team arrested 28 suspects involved in motor vehicle theft syndicates and recovered 22 stolen vehicles, many of which had been sold to unsuspecting buyers within Kenya or smuggled to neighbouring countries, primarily Uganda and Tanzania,” read the statement in part.

In other vehicle-related stories, Citizen Digital reported that NTSA had resolved the shortage of number plates, with motorists expected to resume picking the new digital plates.

“The concerns from the public and stakeholders were valid, and we appreciate their patience. We are now back on track, and clients can expect timely service,” NTSA Director General George Njao stated.

Also Read: Advantages of Investing in Treasury Bonds

Treasury Bond Investors Make Ksh57.6B Profit

Kenyans who invested in Treasury bonds made a profit of Ksh57.6 billion between January and March 2025 through selling their securities at the Nairobi Securities Exchange (NSE).

As reported by the Business Daily, the investors were attracted by the high interest offered for the infrastructure bonds.

It was reported that within the first quarter of 2025, investors traded Ksh724 billion for Treasury bonds in the market.