State House has projected a reduction of electricity-related costs after President William Ruto assented to the Excise Duty (Amendment) Bill, 2025.
In a statement by State House Spokesperson Hussein Mohamed on Thursday, April 17, the new law amended the Excise Duty Act, CAP 472, and removed the 25% duty on imported fully assembled electric transformers.
In the new law, the duty was also removed for parts of assembled transformers.
As a result, Hussein stated that the move would reduce the costs of electricity connection, given that the costs of the transformers will also reduce.
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Previously, Kenya Power used to charge Kenyans Ksh15,000 to connect them to the grid. This high cost was mostly attributed to the high cost of transformers.
"This measure is expected to lower electricity connection costs for consumers by reducing the price of transformers, as every connection relies on transformer infrastructure.
"It will also help bring down electricity tariffs by cutting transformer replacement costs," read the statement in part.
Further, more Kenyans are expected to be connected to the grid, given that more transformers will be imported due to cheaper costs.
"Additionally, it will enable the Kenya Power and Lighting Company to procure adequate transformers within its current budget, supporting a consistent power supply and minimising disruptions," the Spokesperson added.
