President Ruto: Why I removed subsidy on electricity

President William Ruto during a joint media interview at State House, Nairobi on January 4, 2023. [Standard]

President William Ruto has said his government removed subsidy on power because it was unsustainable.

The power subsidy had been put in place by his predecessor President Uhuru Kenyatta.

The Energy and Petroleum Regulatory Authority (EPRA) Director-General Daniel Kiptoo said the 15 percent discount on power would not be extended beyond its expiry date of December 31, 2022.

“Power subsidies were politically-motivated to make Kenyans vote a certain way [in the August 9, 2022 presidential election]. There was no economic sense in it. Some Sh25 billion was being spent on fuel and power subsidies monthly. We did not have the money to cater for the subsidies; we were borrowing it locally or externally,” said the Head of State in a joint media interview at State House, Nairobi on Wednesday, January 4.

He added: “The subsidies were benefiting only a few people, and Kenyans were still experiencing a high cost of living.”

Ruto has, nonetheless, pledged to review power tariffs in March 2023.

“The price of electricity production is determined by several stakeholders, including the private sector. In March 2023, we’ll sit down and review the tariffs so that power becomes more affordable.”