Ministry Effects Uhuru's Orders, Reduces Electricity Costs

  • Kenya Power Building in Nairobi CBD
    Kenya Power Building in Nairobi CBD.
    Twitter
  • The Ministry of Energy has confirmed the 15 percent reduction in the cost of electricity for 2022 as part of President Uhuru Kenyatta’s pledge on Jamhuri Day.

    In a statement, on Friday, January 7, the Ministry explained that the electricity cost reduction began effectively from Jan 1, 2022, and will run through to December 2022.

    A Gazette notice released on the same day, also confirmed that the reduction had commenced and confirmed that the changes will last till the end of the year. 

    The Ministry of Energy hoped that the reduction will boost livelihoods and economic growth by reducing the cost of living.

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

    Further, the government stated that it will effect the next 15 percent trance before March as part of the 30 percent reduction promise by Uhuru. 

    “The Ministry of energy hereby confirms that the Kenya Gazette of January 7, has effected a 15 percent reduction in power tariffs. The reduction will boost livelihoods and economic growth by reducing the cost of living,” the ministry said in a statement.

    “We are working hard at ensuring the next 15 percent trance is effected in this quarter as promised, The ministry will make sure that this improves our global competitiveness, drives job creation and powers economic growth,” the statement read in part.

    In his end-of-year message delivered on Friday, December 31, 2021, Uhuru explained that his initial plan to lower electricity prices was still on course as promised during his Jamhuri Day speech on December 12, 2021, at Uhuru Gardens Nairobi.

    In the new plan, Kenyans were set to enjoy cheap electricity starting March 2022 in accordance with the Presidential order. The directive was, however, revised by the Ministry of Energy, offering Kenyans an early relief. 

    Enforcement of the directive was expected to delay due to the hurdles the Ministry of Energy faced when negotiating with Independent Power Producers (IPPs) who sell power to the Kenya Power and Lighting Company (KPLC).

    According to an official at one of the IPPs, the move by Uhuru’s task force to have them lower their selling price to KPLC was unattainable.

    The official explained that they had already signed contracts with the government and had also spent billions on their current agreements.

    Presidnet Uhuru Kenyatta speaking at State House, Nairobi during a webinar hosted by the Atlantic Council on June 18, 2020.
    President Uhuru Kenyatta speaking at State House, Nairobi during a webinar hosted by the Atlantic Council on June 18, 2020.