The National Treasury through the Medium-Term 2024 Budget Policy Statement has outlined four ways in which the government intends to lower electricity prices.
Njuguna Ndung'u, the Treasury Cabinet Secretary, in the document, outlines that the urgency to lower electricity prices is informed by the need to develop access to affordable and efficient energy.
The document outlines that the policy direction is important to enable Kenya to achieve socioeconomic transformation which is part of President William Ruto’s Bottom-Up Agenda and Vision 2030, Kenya's long-term development blueprint.
Among the strategies the government is looking to employ to reduce electricity prices include; leveraging Renewable Energy Feed-in Tariffs (REFIT) and the engagement of independent power producers.
Others include; investment in geothermal energy and rural electrification.
The National Treasury argues that this will not only reduce electricity prices but also ensure the long-term viability and sustainability of the energy sector.
It was noted that despite Kenya's increasing generation capacity and total electricity connections, token prices remained expensive compared to other East African countries.
REFIT which is being advanced by Ruto’s administration focuses on promoting the generation of electricity from renewable energy sources.
Kenyans who will produce electricity under this program will be able to sell it to the government at a pre-determined price which will be revised after an agreed period.
The Njuguna Ndung’u-led ministry further identified the lifting of a moratorium on Power Purchase Agreements as another way the government was seeking to reduce electricity prices.
“The Government will continue to support the use of renewable energy. Kenya has abundant renewable energy sources such as wind, solar, and geothermal power,” Treasury explained.
“By investing in these sources of energy, Kenya can reduce its dependence on expensive fossil fuels and lower the cost of electricity.”
