Kenya Power Chief Executive Officer (CEO), Joseph Siror, on Thursday, June 8, explained that the cost of electricity will reduce after the ongoing government investment projects are completed.
He emphasised that the government had invested heavily in improving the electricity sector in the country, and the benefits would soon be realised.
"Usually, after major investments, several funds have to be recovered, and you will find that this will lead to the cost rising. However, some have been recovered, and when the process is complete, the prices will go down," he assured.
"The government has ambitiously invested in the electricity sector and these investors are important," he explained.
Siror further explained that dealing with vandalism and the illegal connection was part of the company's main objective to ensure Kenyans get value for their money.
"There is a lot of illegal connection in the country and once we deal with this we can lower the cost," Siror added.
The cost of electricity is among the concerns Kenyans have raised, with the government arguing that it was too high for the common mwananchi.
On May 16, President William Ruto, while chairing a cabinet meeting, explained that the government will roll out a framework to ensure Kenya Power's growth.
Ruto stated that one of the ways to ensure profitability and offer Kenyans cheap electricity was through a multi-faceted approach, offloading some of Kenya Power's assets and restructuring its board.
Kenya Power will also sell its transmission lines to Kenya Electricity Transmission Company (KETRACO) valued at Ksh20 billion.
"This new plan focuses on enhancing the company's financial sustainability by addressing loan balances and the liquidity gap," Ruto stated.
Offloading assets to KETRACO will enable Kenya Power to reduce its outstanding loans by Ksh20 billion. KETRACO, meanwhile, will buy Ksh5.3 billion from energy-generating company KenGen which the government plans to sell to private investors.
Trade Cabinet Secretary, Moses Kuria, while speaking at the Financial Services Forum during the US-Kenya Business Roadshow in the US in April 2023, disclosed that the sale would ensure the government exits the enterprise space to allow the private sector to grow.
“We are lining up privatisations for our pipeline company and two others controlling our renewable resources, KenGen and Geothermal. We are providing an environment conducive to investment,” Kuria stated.
President Ruto removed electricity subsidies put by his predecessor, Uhuru Kenyatta, arguing that it was unsustainable as it had benefitted select individuals.
“Power subsidies were politically-motivated to make Kenyans vote a certain way [in the August 9, 2022 presidential election]. There was no economic sense in it. Some Ksh25 billion was being spent on fuel and power subsidies monthly. We did not have the money to cater for the subsidies and were borrowing it locally or externally,” Ruto stated at a joint media interview at State House, Nairobi, on Wednesday, January 4.
