Kenyans will enjoy lower power tariffs after President William Ruto's Cabinet resolved to lift the moratorium on Power Purchase Agreements (PPAs).
Following a meeting at State House on Tuesday, February 28, Ruto's Cabinet explained that the move would guarantee a consistent supply of electricity.
Kenyans will benefit from the resolve as it is expected to reduce the high cost of electricity tokens owing to the limited production of hydroelectric power.
"Cabinet approved the lifting of the moratorium PPAs as a way of enhancing our nation’s energy security through opening up the energy sector for continued investments," the Cabinet dispatch read in part.
Ruto's roundtable also approved the purchase of electricity from independent power producers guided by a new framework to reduce loss by Kenya Power.
"The new policy framework is a break from the currently negotiated procurements or feed-in tariffs (FITs).
"It will enable the state to procure clean energy at prices that reflect those prevailing in the market, giving consumers the benefit of competition in pricing," the CSs resolved.
In addition to addressing the gaps in HEP production, the government will invest in other sources of electricity such as geothermal generation.
"Cabinet approved the implementation of the 40 MW Olkaria I additional Unit 4 & 5 and Olkaria IV Unit 1 & 2 uprating power project," the statement read in part.
On February 27, the Kenya Electricity Generation Company (KenGen) Ag. Managing Director Abraham Serem admitted that the HEP levels had dropped due to low rainfall.
However, he allayed fears from the public of a dump in the electricity power supply, revealing that Kenya Power had imported power from neighbouring Ethiopia.
Serem added that the electricity generated from water would only be used as a backup to other sources of power.
