Inside plan to split Kenya Power into 2 and new deal signed with Ethiopia

A 25-year agreement signed between Kenya Power and EEP will see Ethiopia become its 2nd biggest supplier of power

Kenya Power Managing Director (Ag), Eng Geoffrey Muli (seated right) and Ethiopian Electric Power CEO, Eng Ashebir Balcha (seated left), during the PPA signing at Stima Plaza on July 28, 2022

Looming changes in the Kenya Power and Lighting Company (KPLC) may finally see the electricity company's monopoly in Kenya reduced in the coming years.

A document released by the Ministry of Energy indicates that Kenya Power is set to be split into two with one entity dealing with commercial consumers and the other - the Rural Electrification and Renewable Energy Corporation (REREC) - taking over the distribution of power to small consumers, mostly households.

Energy Principal Secretary Gordon Khilangwa said the proposal is scheduled to undergo public participation before it is implemented.

“We’re seeking stakeholders’ view on this matter after which we will develop a work plan and timelines of implementation. It is work in progress,” he said.

The proposal will be another move that will be cutting short the responsibilities of the parastatal has had over the years and the second such split since the creation of the Energy Petroleum and Regulatory Authority (EPRA).

Details of the planned split come just days after Kenya Power signed a Power Purchase Agreement (PPA) with Ethiopian Electric Power (EEP) to actualize power trade between the two nations effective November 1, 2022.

In the first three years, Kenya will get a maximum firm capacity of 200 MW and thereafter a maximum firm capacity of 400 MW for the remainder of the 25-year PPA.

Kenya Power has hailed the deal as competitive stating that it will result in Kenyans enjoying clean, reliable, and affordable power.

EEP will be the second largest power supplier to Kenya Power after the KenGen Hydros Eastern Cascade with a contracted 600MW capacity.

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