Nairobi, June 3 -- Kenya has frozen a planned increase in electricity prices from July 1 amid fears of sparking outrage ahead of the elections, dealing a blow to Kenya Power's search for extra revenues to enable it to undertake a network upgrade.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi said on Wednesday that Kenya Power had withdrawn its application for new tariffs, ending a public participation drive that was to start on June 15.

The withdrawal of the tariffs comes in a period when a rise in fuel prices, linked to the Iran war, has sparked deadly protests, which forced the State to cut diesel prices to defuse the outrage.

The economic fallout from the Iran war also pushed inflation to a 27-month high of 6.7 percent.

The ...