President Uhuru Kenyatta in a video address. [PSCU] The overall cost of electricity is set to reduce significantly after President Uhuru Kenyatta accepted recommendations by a taskforce reviewing power prices in the country.
A unit of electricity will be priced at Sh16 per kilowatt hour (kWh), down from Sh24 per kilowatt hour, representing a 30 per cent drop. This means a Kenyan spending Sh500 per month averagely on electricity, will, at the start of 2022, pay Sh330 monthly.
The Presidential Taskforce on Review of Power Purchase Agreements gave its report to the President on Wednesday, September 29.
The Head of State, who welcomed the recommendations, directed Energy Cabinet Secretary Charles Keter to ensure implementation of the proposals by end of 2021. READ MORE
The taskforce attributed high power costs in the country to poor contract management frameworks, lack of proper demand forecasting and planning, and unfavourable agreements entered into between KenGen and independent power producers.
The listed loopholes result in the extra costs being transferred to the consumer.
To remedy the situation, the taskforce recommended the immediate cancellation of all unconcluded negotiations of Power purchase agreements (PPAs) and ensure future PPAs are aligned to the least cost power development plan (LCPDP).
It also recommended that ongoing reforms at the Kenya Power and Lighting Company (KPLC) are fast-tracked to restructure it into a commercial entity that is both profitable and also capable of delivering efficient and cost-effective electricity supply to all consumers.
The president also wants KPLC to exercise due diligence when procuring PPAs and monitor contracts drafted in the process.
Kenyans have over the years complained of the increased prices in electricity and petroleum products, forcing them to dig deeper into their pockets.