Nairobi — Kenya Power CEO Joseph Siror has linked the high cost of power to a number of tariffs that are factored into the final tokens purchased by customers.

Siror told Spice FM that the final charge is inclusive of the costs of generation, transmission, distribution, and retailing.

Part of the charges are levies remitted to the energy and water bodies, as well as taxes to the state.

"If we were to retain the investment as they were in ten years ago without investing on anything more, indeed the cost of power would be quite cheap because the capital investment/addition is not coming in," Siror said.

"But when you invest new plans and expanding then there is a capital injection that has to be recovered using that tariff, and it is for that reason that as we continue to invest in energy sector then the cost has to be recovered."

Early this year, the utility firm announced that the cost of power for domestic consumers will go up by between 13 and 20 percent in the new proposed tariffs, inclusive of levies and taxes.

In the new tariffs, consumers under the new life-line consumption band of below 30 kilowatt-hours (kWh)per month will pay Sh20.5 per unit from the current Sh18.14, a 13 percent jump.

Out of the Sh20.5, Sh14 is the consumption charge, meaning Sh6.5 is on taxes and levies.

If the tariffs are approved, users in this band spending Sh300 on power will get 14.6 units, compared to 16.5 units.

Further, ordinary domestic consumers whose usage exceeds 30 kWh per month will pay Sh26.4 per unit from the current Sh22, a 20 percent increase.

Out of the Sh26.4, Sh21.00 is the consumption charge, meaning Sh5.4 is on tax and levies.