Uhuru orders Energy CS Keter to lower energy cost
It is a reprieve for Kenyans after President Uhuru Kenyatta ordered Energy CS Charles Keter to ensure the cost of energy consumption is reduced before by December 31, 2021.
The President’s directive follows a recommendation report by a Presidential Taskforce on Review of Power Purchase Agreements which he (Uhuru) created to look into why the cost of energy kept soaring at the expense of a common Kenyan.
It was established that there was a vast differential between KenGen and Independent Power Producer (IPP) tariffs and electricity dispatch allocations.
There was also the lack of proper demand forecasting and planning, leading to irreconcilable projections as against demand, the existing risk allocation imbalances between KPLC and IPPs were further exacerbated by poor contract management frameworks.
It was also established that there was an uncoordinated institutional architecture that inadvertently contributes to enhanced operational costs passed on to consumers.
Out of this finding, the President has directed for the reduction of the cost of electricity by over 33 percent within four months.
And now within a period of four months from today, Kenyans will see a reduction of the power consumer tariffs from an average of Ksh.24 per kilowatt-hour to Ksh.16.
The consequence of the proposed interventions is that a consumer who previously spent Ksh.500 per month on electricity shall by 31st December, 2021 pay Ksh.330 per month.