The National Assembly has rejected a plea by the Ministry of Energy and Petroleum, headed by CS Opiyo Wandayi, to lift the moratorium on Power Purchase Agreements (PPAs), insisting Kenyans must be protected first.
The Parliament cited concerns over inadequate safeguards to protect taxpayers from potential exploitation by foreign investors.
“Members of Parliament have rejected a proposal from the Ministry of Energy and Petroleum to lift the moratorium on Power Purchase Agreements (PPAs), citing concerns over inadequate safeguards to protect taxpayers from potential exploitation by private investors,” read part of a statement.
The Ministry had approached Parliament with a request to lift the moratorium specifically on coal-fired power plants, stressing the urgency of expanding power sources to meet Kenya’s increasing energy needs.
According to the Ministry, anticipated growth in power consumption necessitates a diversification of sources, with coal plants positioned as a stable and cost-effective complement to existing hydroelectric power.
The MPs who in their oversight role chair key committees - including departmental, audit, appropriations, and select committees strongly objected to the ministry’s plea to lift the moratorium.
The legislators insisted that the Ministry must first implement stringent measures to prevent projects from disproportionately favoring investors at the expense of public interest
They maintained that no relaxation of the moratorium should proceed until sufficient protections are established to ensure that any new agreements prioritize taxpayer welfare and national interests.
The MPs spoke during the National Assembly leadership retreat with Energy and Petroleum Cabinet Secretary Opiyo Wandayi, Principal Secretary for the State Department of Energy, and Kenya Power Managing Director and CEO Joseph Siror at Enashipai Resort and Spa, Naivasha.
Led by Mwala MP Vincent Musyoka, who chairs the National Assembly’s Departmental Committee on Energy, members expressed concern over the Ministry’s inadequate safeguards, saying there is currently no substantial basis for lifting the moratorium on Power Purchase Agreements (PPAs).
He cited the recent shifts in indicative tariffs as an example, noting that “the indicative tariffs gazetted in 2012 for wind power stood at Ksh12/kWh. However, shortly after, the Lake Turkana Wind Power project secured a PPA at Ksh16/kWh over a 20-year term — higher than the forecasted tariffs intended to provide long-term savings.
Endebess MP Robert Pukose proposed for the Ministry to fully disclose details of PPAs if Parliament were to lift the moratorium on the PPAs.
“We could want the ministry to first reveal how much they are paying for the power purchasing from various power producers, such as KENGEN and the rest. How much are you paying per unit? Are you able to give us this so that we can make an involved decision?” posed Dr. Pukose.
