KPLC Cuts Electricity Costs After Uhuru Directive

  • Kenya Power Building in Nairobi CBD
    Kenya Power Building in Nairobi CBD.
    Twitter
  • The Kenya Power, popular known by its NSE ticker, KPLC, on Thursday, December 16, announced that it would implement the directive issued by President Uhuru Kenyatta.

    This came after a declaration by the Head of State on December 12 that the cost of power would be revised downwards by 30 per cent. 

    According to the President, the reduction would happen in two phases of 15 per cent each.

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    President Uhuru Kenyatta during the Jamhuri Day Celebrations at the Uhuru Gardens on Sunday, December 12, 2021
    State House

    Kenya Power stated that the cost of power would be implemented in the December billing in accordance with the first phase. As such Kenyans will pay 15 per cent less for power as from January 2022.

    In his address, the president explained that the first 15 per cent was realised through action focused on an audit of the KPLC systems.

    "The reduction of the cost of electricity will be implemented in two tranches of 15 per cent each; with the first 15 achieved through initial actions focusing on system and commercial losses, to be reflected in the December bills, and a further 15% reduction, in the first quarter of 2022," he stated.

    Uhuru noted that the second tranche would be achieved through a review of the contracts by with power suppliers. He added that officials from the  Ministry of Energy had initiated engagements with Independent Power Producers aimed at renegotiation of power purchase agreements; so as to give better value for money for consumers.

    He urged the power producers to demonstrate goodwill as the government sought to make the energy sector a greater catalyst of national development.

    On October 7, Interior Cabinet Secretary, Fred Matiang'i declared Kenya Power a special government project after a meeting  with the KPL board and senior management teams from the firm and the Ministry of Energy.

    Matiang'i called for an inter-ministerial team to be set up to audit and oversight urgent reforms in the company and ensure the implementation of the recommendations by the Task Force.

    The overhaul of KPLC was necessitated by a public uproar over the high cost of electricity. The government stepped in to cushion Kenyans who were also feeling the biting effects of a struggling economy owing to the  Covid-19 pandemic.

    File image of Kenya Power electricians at work
    File image of Kenya Power electricians at work
    File