President Uhuru Kenyatta has ordered the Ministry of Energy to implement cost reduction changes at the Kenya Power and Lightening Company (KPLC).
Through a statement, the Head of State directed the Energy CS Charles Keter to implement the changes recommended by the Presidential Task Force Review of Power purchase.
For instance, he revealed that the cost reduction of power would only be achieved through the reduction of consumer tariffs from Sh24 per kilowatt-hour to Sh16 kilowatt-hour.
“The President has also examined and welcomed the recommendations of the Taskforce that establish a path towards the reduction of the cost of electricity by over 33% within four months. 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 KES 24 per kilowatt-hour to KES 16 per kilowatt-hour which is about two-thirds of the current tariff,” the statement reads in part.
The task force further recommended the Cancellation with immediate effect of all concluded negotiations of Power Purchase Agreements and ensure future PPAs are aligned to the Least Cost Power Development Plan (LCPDP).
Also, it called for the Fast-tracking and deepening of the ongoing reforms at KPLC to restructure it into a commercial entity that is both profitable and also capable of delivering efficient and cost-effective electricity supply to all consumers.
Report of the Presidential Taskforce on review of power purchase agreements
— State House Kenya (@StateHouseKenya) September 29, 2021