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• Fri Apr 18 2025

President William Ruto assented to the Excise Duty (Amendment) Bill 2025 at State House, Nairobi, on Thursday, April 17

The bill sought to remove a 25% duty charged on imported electric transformers in the country

Ruto said the new law will be a major boost for Kenya Power and Lighting Company (KPLC) as it cuts the cost of replacing transformers

A reduction in Kenya Power costs could translate to a decrease in electricity bills passed to consumers

TUKO.co.ke journalist Wycliffe Musalia has over six years of experience in financial, business, technology, climate and health reporting, which offers deep insights into Kenyan and global economic trends.

Kenyans could soon enjoy cheap electricity from the Kenya Power and Lighting Company (KPLC).

President William Ruto signing an executive law. Photo: William Ruto.

Source: Twitter

President William Ruto assented to the Excise Duty (Amendment) Bill 2025, which proposed a reduction in duty for electric transformers.

The bill amended the Excise Duty Act, CAP 472, to remove the 25% duty on imported fully assembled electric transformers and their parts.

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How Kenyans will benefit

In a correspondence from the State House on Thursday, April 17, Ruto noted that the amended law is expected to lower electricity connection costs for consumers.

This will be achieved through a reduction in the price of transformers.

"Every electricity connection relies on transformer infrastructure. The removal of the 25% duty will help bring down electricity tariffs by cutting transformer replacement costs," read the correspondence in part.

What's the current KPLC tariff?

In July 2024, Kenya Power's tariff approved by the Energy and Petroleum Regulatory Authority (EPRA) came into effect.

KPLC sought to increase its revenue to KSh 216.2 billion for the 2025/2026 fiscal year based on the new tariff review.

The overall revenue requirement was proposed to increase from KSh 195.4 billion in the year 2022/2023 to KSh 216.2 billion in the year 2025/2026.

Consistent KPLC electricity supply

The reduction in the cost of replacing a transformer is also expected to allow KPLC to procure adequate transformers within its current budget.

This will support a consistent power supply and minimise power supply disruptions.

KPLC has been reporting power outages and interruptions, sometimes caused by poor and outdated transfers.

In December 2024, Kenya Power reported a nationwide blackout affecting parts of the North Rift, Central Rift, Western Kenya, South Nyanza, Nairobi, and Mt Kenya regions.

The outage hit most households and businesses, causing inconveniences to traders and customers.

Ruto rejects Conflict of Interest Bill

At the same time, the head of state refused to sign the Conflict of Interest Bill 2025 into law.

The bill was expected to set measures for the fight against corruption and ensure integrity in public offices.

However, Ruto said he will veto any bill that fails to meet the standards, such as the Conflict of Interest Bill 2025.

He said the bill did not meet the threshold of the expectations of the people of Kenya.

The president added that it requires further improvements to strengthen its provisions on transparency and enforcement to align with the constitutional values of integrity and good governance.

Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.

Source: TUKO.co.ke