President Uhuru Kenyatta has directed the Kenya Power and Lighting Company to immediately lower the cost of electricity.

The president has ordered the power company to do so within a period of four months.

According to a report by President Kenyatta on Wednesday, September 29, concern was raised over the high power prices while asking the Kenya power to ensure that consumers are relieved from the high prices by December 31.

“The consequence of the proposed interventions is that a consumer who previously spent Sh500 per month on electricity shall by 31st December 2021 pay Sh330 per month. This cost reduction will be achieved through the reduction of the consumer tariffs from an average of Sh24 per kilowatt-hour to Sh16 per kilowatt-hour which is about two-thirds of the current tariff,” part of the report reads.

The president constituted a task force on March 29 in order to review power purchase agreements after it was established that Kenya power sold power at inflated prices.

Kenyatta further directed energy CS Energy Charles Keter to ensure the immediate implementation of all the recommendations of the Taskforce by December 25, 2021.

The task force recommended that:

The power company includes names and beneficial ownerships of all IPPs with which it has contractual arrangements so as to ensure there is transparency.

Review and Renegotiations with Independent Power Producers (IPPs) to secure an immediate reduction in Power Purchase Agreements (PPA) tariffs within existing contractual arrangements;

Cancellation with immediate effect of all unconcluded negotiations of Power Purchase Agreements and ensure future PPAs are aligned to the Least Cost Power Development Plan (LCPDP).

Kenya Power to take the lead in the formulation and related PPA procurement of the Least Cost Power Development Plan (LCPDP) among other recommendations.

 

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