The National Assembly’s Energy Committee has expressed concerns about the high cost of electricity in the country. On Tuesday, the committee questioned officials from the energy sector, including Energy Principal Secretary Alex Wachira and top Kenya Power (KPLC) management. They urged the relevant entities to swiftly reduce the high levies on power billing to lower prices.
The Ministry of Energy informed Parliament that it is seeking to renegotiate with all independent power producers to address the high cost of electricity. The session was dominated by questions such as, “Who has the power to lower the cost of electricity in the country?” as lawmakers sought solutions for Kenyans facing rising power costs.
Energy Committee Chair Vincent Musyoka questioned, “For how long are we going to talk about the high cost of electricity, bwana PS?” Embakasi South MP Julius Mawathe added, “As a committee, we want to know why we should buy at Ksh.28 per kW when our neighbors are paying Ksh.12 per kW?”
In response, PS Wachira explained, “There are many factors that go into the pricing of power. We have implemented numerous subsidies, including for industries.
” He pointed out that the main issue is the Independent Power Producers (IPPs), whose initial contracts and pricing continue to dictate the high cost of power. The ministry is seeking to bring the IPPs back to the table to renegotiate their power purchase agreements, although termination of these contracts could cost over Ksh.30 billion.
“It is important to understand that geothermal is not the problem; the issue lies with the renewable energy firms and their pricing,” Wachira stated.
EPRA boss Daniel Kiptoo noted, “Reducing the cost of electricity involves various stages. We will need to examine the minor charges on billing.”
Lawmakers also urged KPLC to expand its reach. “Even as we seek lower prices, KPLC should connect more Kenyans, which will increase revenue from bills,” said Awendo MP John Walter.
Kenya Power Managing Director Joseph Siror mentioned, “We are working on connecting more Kenyans to the main grid. For instance, we are waiting for the Treasury to approve a Ksh.1.2 billion tender to start the Lodwar-Mandera grid project.”
An audit report by Kenya Power for the financial year 2022 revealed a significant disparity between the cost of power procured from the Kenya Electricity Generating Company (KenGen) and from IPPs. This disparity, amounting to billions of shillings, is reflected in the cost of electricity bills for consumers.
