President William Ruto has issued a directive to the Ministry of Energy and Petroleum CS Davis Chirchir to lower the prices of electricity.
In a Cabinet despatch on Monday, the Cabinet agreed that electricity prices should be lowered due to the increased use of hydro-generated power.
"To fortify the national response, Cabinet directs the Ministry of Energy to pass the benefit of lower electricity tariffs to the public in a manner that promotes the increased use of hydro-generated power, which has presently increased to 20 per cent while diesel has gone down from 15 per cent to 10 per cent," the despatch reads in a part.
The Cabinet wants power prices reduced as Fuel Cost Charge has gone down by five per cent.
Fuel Cost charge is the added cost or rebates to the consumers as a result of fluctuations in world prices as well as fluctuations in the quantity of oil consumed by electricity generation.
According to Kenya Power and Lighting Company, the Fuel Cost Charge lags one month behind the actual price of the fuel.
The money is collected by KPLC and all of it is passed on directly to electricity generation companies, who in turn pay fuel suppliers.
In the last fuel review by Epra, a litre of diesel is going for Sh203.06 in Nairobi.
The prices will remain in effect until December 14 at midnight when a new pricing cycle will take effect.
The Cabinet also directed the Ministry of Energy and Petroleum to give priority to maximum production, uptake and distribution of hydro-generated power.
President Ruto's Cabinet said the move should be in consultation with all agencies within the sector.
The move comes amid Kenyan's cry of the escalating high cost of living in the country.