KPLC Given Billions to Save Kenyans From High Electricity Bills

Undated image of a customer keying in tokens in a prepaid electric meter.
A photo of a customer keying in tokens in a prepaid electric meter.
Kenyans.co.ke

Kenyans can breathe a sigh of relief as the price of electricity is set to drop by 15 per cent starting June.

This is after the National Treasury on Thursday, June 2, approved a Ksh7.05 billion subsidy to Kenya Power and Lighting Company in a bid to cushion Kenyans from the high cost of electricity that hit a record high in 2021.

The National Assembly Budget and Appropriations Committee agreed that the money be paid to Kenya Power to cater for phase two of the downward price adjustment.

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

"To shield Kenya Power from the effects of low electricity prices in the implementation of this second phase, the company has been allocated Ksh7.05 billion in the proposed 2022/23 budget,” stated the National Treasury under the leadership of CS Ukur Yatani.

The parliamentary committee members noted the move will see the implementation of the second tranche, which was scheduled for April 2022 but stalled due to prolonged negotiations, take off immediately.

The subsidy will see the completion of the 33 per cent price reduction of the cost of a unit of electricity promised by President Uhuru Kenyatta, and enforced by the Presidential Taskforce.

According to the committee led by Kieni MP Kanini Kega, the Independent Power Producers (IPPs) were initially hesitant to lower the prices of energy.  The IPPs questioned the state's power to dictate the contracted capacity and payments.

They argued that apart from the existing Power Purchasing Agreements (PPAs), the government needed to consider the billions they had invested in setting up infrastructure used in the supply of electricity.

In April, Energy Cabinet Secretary, Amb Monica Juma, addressed concerns over the delay in the implementation of the second tranche noting that discussions were being held to reach a workable, sustainable solution.

"The Ministry of Energy remains steadfast in its resolve to drive these irreversible reforms and calls upon all stakeholders, particularly the IPPS to reciprocate the government’s demonstrated good faith as we finalize the negotiation process,” CS Juma stated at the time.

President Uhuru Kenyatta, during the Jamhuri Day celebrations on December 12, 2021, directed that the cost of power be lowered. He further called for scrutiny of the PPAs after it emerged that the existence of middlemen pushed the costs high.

"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," Uhuru stated.

Energy and Petroleum Cabinet Secretary (CS) Monica Juma
National Security Advisor Monica Juma Monica Juma speaking at an event on February 2022.
Photo
Ministry of Energy