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KenGen moves to end Kenya Power’s monopoly by selling electricity directly to consumers

KenGen moves to end Kenya Power's monopoly by selling electricity directly to consumers

– KenGen CEO Rebecca Miano said the parastatal was waiting for finalisation of the new regulations under the Energy Act 2019 so as to start selling power to large consumers

– The Energy Act 2019 was signed into law by President Uhuru Kenyatta in March 2019

– Kenya Power had earlier expressed concerns after noting Kenyans were shifting to cheaper and reliable solar, renewable energy

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Electric power producer KenGen is set to start selling electricity directly to consumers, thereby ending Kenya Power and Lighting Company’s close to 100 years of monopoly in the market.

The company’s chief executive officer Rebecca Miano said the parastatal was awaiting finalisation of the new regulations under the Energy Act 2019 so as to start selling power to large consumers. “The Energy Act 2019 has provision for us to sell power directly mostly to large consumers. The only thing left is finalisation of the regulations and how the infrastructure will be developed. We believe that when the new laws are ready, the possibility (to sell electricity) will be there,” Miano was quoted by Business Daily. The Energy Act 2019 was signed into law by President Uhuru Kenyatta in March 2019 but the rules giving the nod to allow other companies other than KPLC to apply for licences to sell electricity directly were yet to be put in place.

KenGen’s move to target large consumers would deal a major blow to Kenya Power as they account for over half of the firm’s electricity sales.

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KenGen is the largest electric power producer in Kenya producing about 75% of the electricity consumed in the country.

It would, however, require a distribution license and would also be required to develop its assets such as power lines to avoid duplication of roles, Energy Cabinet Secretary Charles Keter said. “A new power distributor would require new assets and thus there may be expensive duplication of roles,” Keter said. Concerns over shift to solar energy

Kenya Power had earlier expressed concerns after noting Kenyans were shifting to cheaper and reliable solar, renewable energy.The lighting company in its annual report said about 54.8 % of revenue from the industrial users was on the downward trend.The transmitter generated KSh 63 billion from industrial customers which accounted […]

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