The sports category has moved to a new website.
ADVERTISEMENT

Uhuru orders Kenya Power to immediately lower electricity price, gives CS deadline

President Uhuru Kenyatta has set the price he wants electricity to cost in Kenya.

President Uhuru Kenyatta said Kenya had made commendable progress towards the attainment of the United Nations Sustainable Development Goals

President Uhuru Kenyatta has ordered the lowering of electricity prices in Kenya within the next four months.

According to a report from President Kenyatta seen by Pulse Live news desk on Wednesday, September 29, he raised concern over the irregular power purchase agreements entered by Kenya Power.

The consequence of the proposed interventions is that a consumer who previously spent Sh500 per month on electricity shall by 31st December 2021 pay Sh330 per month. This cost reduction will be achieved through the reduction of the consumer tariffs from an average of Sh24 per kilowatt-hour to Sh16 per kilowatt-hour which is about two-thirds of the current tariff,” the report reads.

ADVERTISEMENT

On March 29, President Kenyatta constituted a task force to review the power purchase agreements after it was discovered that independent power produces sold electricity to Kenya Power at inflated prices.

The President has directed Energy CS Charles Keter to ensure the immediate implementation of all the recommendations of the Taskforce by December 25, 2021.

Other recommendations include;

In line with the constitutional imperative for transparency in the public sector, Kenya Power’s annual reports should include the names and beneficial ownerships of all IPPs with which it has contractual arrangements.

Review and Renegotiations with Independent Power Producers (IPPs) to secure an immediate reduction in Power Purchase Agreements (PPA) tariffs within existing contractual arrangements;

ADVERTISEMENT

Cancellation with immediate effect of all unconcluded negotiations of Power Purchase Agreements and ensure future PPAs are aligned to the Least Cost Power Development Plan (LCPDP).

Kenya Power to take the lead in the formulation and related PPA procurement of the Least Cost Power Development Plan (LCPDP);

Kenya Power to institute Due Diligence and Contract Management frameworks for PPA procurement and monitoring along the lines of the drafts provided by the Taskforce.

Kenya Power to institute one and five-year rolling demand and generation forecasts and associated models;

ADVERTISEMENT

Kenya Power to adopt standard PPAs and proposed Government Letters of Support (LOS) along the lines of the drafts provided by the Taskforce;

Kenya Power to undertake a forensic audit on the procurement and system losses arising from the use of Heavy Fuel Oils (HFOs);

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Wetangula addresses claims of plot to make Raila exit politics through AU bid

Wetangula addresses claims of plot to make Raila exit politics through AU bid

Woman dies after being pushed from apartment in Kasarani

Woman dies after being pushed from apartment in Kasarani

Emotions run high as Kelvin Kiptum wins award posthumously

Emotions run high as Kelvin Kiptum wins award posthumously

Another accident at notorious blackspot in Kisumu claims 4 lives

Another accident at notorious blackspot in Kisumu claims 4 lives

List of father-son duos who have served as presidents in Africa

List of father-son duos who have served as presidents in Africa

Several feared dead after bus collides with fuel tanker

Several feared dead after bus collides with fuel tanker

Gangs paralyse Haiti airport & capital after PM flies to meet Ruto

Gangs paralyse Haiti airport & capital after PM flies to meet Ruto

Destination of wide load 'mnyama' that has marvelled Kenyans

Destination of wide load 'mnyama' that has marvelled Kenyans

CS says DP's office is delaying payment of homeless Embakasi gas blast victims

CS says DP's office is delaying payment of homeless Embakasi gas blast victims

ADVERTISEMENT