KPLC billing

[upepo]

Those firms that earn in dollars pay their employees in Kenya shillings. Ask yourself why they've never thought about paying the salaries in dollars to avoid exchange rate losses.

The law requires employees to be paid in Kenya shillings.

Another question. Have you ever discovered that if you have say US$100,000 in a fixed deposit account in Kenya the interest you will earn will be like 2% but if you convert the money to KShs and give it to the same bank the interest will be higher?

If you have dollars in a fixed account, the money will still appreciate relative to the shilling even if the bank offers 0% interest. The easiest way to avoid the depreciation of money you do not intend to use in the near future is to convert it to dollars.

 

[Okiya]

The law requires employees to be paid in Kenya shillings.

If you have dollars in a fixed account, the money will still appreciate relative to the shilling even if the bank offers 0% interest. The easiest way to avoid the depreciation of money you do not intend to use in the near future is to convert it to dollars.

Kplc themselves admitting it's an issue to do with unavailability of FX.

 

[mzeiya]

A break from the billing topic. Eye cleanser Solar edishen - 2 days .

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What are we looking at?

 

[upepo]

Kplc themselves admitting it's an issue to do with unavailability of FX.

Which does not negate the fact that both parties will save considerable amounts.

 

[Okiya]

Which does not negate the fact that both parties will save considerable amounts.

Take a step back and ask yourself why this discussion is happening now. Is it because the companies suffer huge exchange losses or because of scarcity?

If it's about exchange losses look at my example below of company z and make the judgement. These amounts that company z are losing every month are immaterial

 

[upepo]

Take a step back and ask yourself why this discussion is happening now. Is it because the companies suffer huge exchange losses or because of scarcity?

If it's about exchange losses look at my example below of company z and make the judgement. These amounts that company z are losing every month are immaterial

What reasons did Kenya power give for wanting to bill customers in forex?

How much money did they lose during loan repayments in 2022 from forex exposure?

Finally, when they convert their shillings into dollars, they do so at rates much higher than the official rate.

 

[Okiya]

What reasons did Kenya power give for wanting to bill customers in forex?

View attachment 81337

How much money did they lose during loan repayments in 2022 from forex exposure?

View attachment 81338
Finally, when they convert their shillings into dollars, they do so at rates much higher than the official rate.

View attachment 81340

Those dollar shortages and exchange rates are 100% kplc problems. The customers who earn in dollars don't have any problem paying in Kenya shillings. Infact, I suspect some will even resist this move of paying bills in dollars. Like I said, KPLC wants to transfer it's problems to customers

Do you have any article showing a KPLC customer willingness to pay in US$ because they suffer exchange losses when they pay in shillings?