State-owned Kenya Power will charge some of its customers in dollars and euros to check foreign exchange losses following the weakening of the shilling, Business Daily newspaper reported.

“To mitigate against the impact of the fluctuation in foreign exchange rates that have continued to adversely affect the financial performance, we are pursuing several initiatives, including allowing a section of our customers whose income is in foreign currency (USD and euro) to settle their electricity bills in these currencies,” the utility provider said.

The firm declared that the continued decline of the shilling against major currencies, including the dollar, is impacting its financial performance.

The growing demand for dollar payments reflects the economy’s increased dollarisation due to the shilling depreciating 24% since March 2020.

Receiving payments in foreign currencies will also allow Kenya Power to avoid exchange losses for wholesale electricity that it buys from generators based on hard currencies. 

The newspaper reported that the move will assist in covering the additional costs in repayments for loans denominated in dollars and euros.

(Editing by Cleofe Maceda; Cleofe.maceda@lseg.com)