ENERGY PRICE INDEX

PRESS RELEASE
September 19, 2023

KENYA ENERGY PRICE INDEX September 23

KENYA ENERGY PRICE INDEX

Ksh15.57
Sep-23 Ksh21.44
Ksh4.65

Ksh15.15
Aug-23 Ksh21.66
Ksh4.64

Ksh15.63
Jul-23 Ksh22.74
Ksh4.43

Ksh0.00 Ksh5.00 Ksh10.00 Ksh15.00 Ksh20.00 Ksh25.00

Non renewables Energy Price Index Grid Electricity Energy Price Index Renewables Energy Price Index

1. The Energy Price index for renewables increased slightly from 4.64 Ksh per Kwh to 4.65 Ksh
per kWh due to the increase in the Kenya shilling to the United States Dollar forex exchange
rate
2. Grid electricity reduced slightly as the fuel oil adjustment reduced from 4.46 Ksh per kWh to
4.16 Ksh per kWh and the foreign exchange adjustment reduced from 1.71 ksh per kWh to 1.38
Ksh per kWh.
3. Non-renewables increased from 15.15 ksh per kWh to 15.57 Ksh per kWh due to an increase in
the pump prices for petrol, diesel, and kerosene. The Energy Price Index includes automotive
liquified petroleum gas, which reduces the average price.
4. A comparison of the costs of cooking fuels shows that renewable energy sources are still
cheaper, thereby creating a financial opportunity for transition to cleaner sources of energy.

Kenya Renewable Energy Association

P.O. Box 42040-00100, 3rd Floor, Strathmore Business School (SBS), Keri Road, Off Ole Sangale Road, Nairobi, Kenya.
Tel: +254 740 541896. Email: administrator@kerea.org. Website: www.kerea.org
 IEET-KEREA ENERGY PRICE INDEX September 23

Figures 1: e-cooking fuel sources

Cooking Fuels Cost , Ksh per kwh

KEROSENE SHOP PRICE Ksh25.01
LIQUEFIED PETROLEUM GAS 3KG Ksh20.21
KEROSENE PUMP PRICE Ksh18.01
LIQUEFIED PETROLEUM GAS 22.5 KG Ksh16.30
LIQUEFIED PETROLEUM GAS 13 KG Ksh16.29
LIQUEFIED PETROLEUM GAS 50 KG Ksh16.29
LIQUEFIED PETROLEUM COMMERCIAL Ksh15.80
LIQUEFIED PETROLEUM GAS 6 KG Ksh15.58
ETHANOL Ksh13.16
DOMESTIC BIOGAS (WITH IMPORTED FEEDSTOCK)-… Ksh8.45
SOLAR PV WITH ONE HOUR OF STORAGE Ksh7.07
THIRD PARTY DAYTIME SOLAR PV ELECTRICITY Ksh6.68
SUSTAINABLE INDUSTRIAL WOOD FUEL Ksh4.32
BIOMASS GRASS BRIQUETTES Ksh3.85
SISAL ENERGY BRIQUETTES /PELLETS/ GRANULES Ksh2.54
BIOMASS SUGARCANE BRIQUETTES Ksh2.26
DOMESTIC BIOGAS (WITH IMPORTED FEEDSTOCK)-… Ksh2.01
DOMESTIC BIOGAS (WITH OWN FEEDSTOCK)- COW… Ksh0.97
DOMESTIC BIOGAS (WITH OWN FEEDSTOCK)- FOOD… Ksh0.33
DOMESTIC BIOGAS (WITH OWN FEEDSTOCK)- CEREAL… Ksh0.12

Ksh0.00 Ksh5.00 Ksh10.00 Ksh15.00 Ksh20.00 Ksh25.00 Ksh30.00

Figure 1t Cooking sources

• Considering the cooking fuel costs, clean cooking using LPG becomes corresponding
expensive as one moves from bigger cylinders (commercial, to 50kg, then 13kg, then 22.5kg
then 3kg). The only exception to this is the Meko (6kg) is the cheapest of all.

• In terms of cooking using Tier 4 and Tier 5 fuels, Ethanol at Ksh 13.16 per kWh provides the
best transitional energy source to clean fuels, with biogas being the cheapest of all fuels for
E-cooking

• An entry of players in the e-cooking sector in terms of conversion of Ethanol and biogas
into electric cooking would make a significant return on investment

5. Automotive LPG at 92 Ksh per kg translates to 8.08 Ksh per kWh in comparison to petrol at
22.28 Ksh per kWh. Using the example of a Suzuki Alto with a mileage of 19.7 Km per litre and
driving 3,000 Km per month, the simple payback on the conversion is 73 days (about 2 and a
half months). This does not factor applicable taxes to petrol. When applied, the simple payback
for LPG is in 103 days (about 3 and a half months).

Kenya Renewable Energy Association

P.O. Box 42040-00100, 3rd Floor, Strathmore Business School (SBS), Keri Road, Off Ole Sangale Road, Nairobi, Kenya
Tel: +254 740 541896. Email: administrator@kerea.org. Website: www.kerea.org
 IEET-KEREA ENERGY PRICE INDEX September 23

Parameter Value Units

Distance travelled per month 3000 Km
Cost per month using petrol Ksh31,923.33 Ksh per month
Cost using LPG Ksh11,575.43 Ksh per Month
Conversion cost Ksh50,000.00 Ksh
Monthly savings Ksh20,347.89 Ksh per month
Simple Payback 2.46 Months

Total Taxes 51%

Ksh4.12 Ksh per kWh
Total Cost of A LP with Taxes Ksh12.20 Ksh per kWh
Ksh5.83 Ksh per Km
An LPG Fuel cost Ksh17,478.91 Ksh per month
Conversion Cost Ksh50,000.00
Monthly savings Ksh14,444.42 Ksh per month
Simple Payback 3.46 Months
Days per month Ksh30.00 Days

6. The key factor in making transition decisions should be the affordability, resources accessibility
and efficiency of the transition.

Andrew Amadi Dr. Francis Xavier

Chief Executive Officer Institute of Energy and Environment

Technologies (JKUAT)

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Kenya Renewable Energy Association

P.O. Box 42040-00100, 3rd Floor, Strathmore Business School (SBS), Keri Road, Off Ole Sangale Road, Nairobi, Kenya
Tel: +254 740 541896. Email: administrator@kerea.org. Website: www.kerea.org