Kenyans will soon get a releif on their power costs after President Uhuru Kenyatta ordered the Ministry of Energy to implement changes aimed at reviewing downwards, the cost of energy.
This is after recommendations by a taskforce Uhuru formed in March 2021, to establish a path towards the reduction of the cost of electricity by over 33 per cent within four months.
State House Spokesperson Kanze Dena in a statement dated Wednesday, September 29, said Uhuru directed the Energy Cabinet Secretary, Charles Keter, to immediately make the changes.
President Uhuru noted that the cost reduction would be achieved through the reduction of the consumer tariffs from an average of Ksh24 per kilowatt hour to Ksh16 per kilowatt hour, which is about two thirds of the current tariff.
According to the President, the consequence of the proposed interventions will ensure that a consumer who previously spent Ksh500 per month on electricity will by 31st December, 2021 pay Ksh330 per month.
The taskforce also recommended review and renegotiations with Independent Power Producers (IPPs) to secure immediate reduction in Power Purchase Agreements (PPA) tariffs within existing contractual arrangements.
Upon implementation of the recommendations, all unconcluded negotiations of Power Purchase Agreements will be cancelled.
Future PPAs are will also be aligned to the Least Cost Power Development Plan (LCPDP).
The taskforce also recommended the fast tracking and deepening of the ongoing reforms at KPLC to restructure it into a commercial entity that is profitable and capable of delivering efficient and cost-effective electricity supply to all consumers.
KPLC was recommended to institute Due Diligence and Contract Management frameworks for PPA procurement and monitoring along the lines of the drafts provided by the Taskforce.
The President expressed gratitude to the Taskforce for their sense of civic duty and professionalism and for expeditiously discharging their mandate.
He also conveyed his gratitude to the new Board of Kenya Power for steering the ongoing ground-breaking reforms in the nation’s anchor utility company.
Leave a Reply