This archive report was first published on 29 September 2021.
On September 29, 2021, President Uhuru Kenyatta accepted recommendations from a taskforce reviewing power prices in Kenya, paving the way for a significant reduction in the overall cost of electricity.
A unit of electricity will be priced at Sh16 per kilowatt hour (kWh), down from Sh24 per kilowatt hour, representing a 30 per cent drop. This means a Kenyan spending Sh500 per month averagely on electricity, will, at the start of 2022, pay Sh330 monthly.
The Presidential Taskforce on Review of Power Purchase Agreements attributed high power costs in the country to poor contract management frameworks, lack of proper demand forecasting and planning, and unfavourable agreements entered into between KenGen and independent power producers.
The taskforce recommended the immediate cancellation of all unconcluded negotiations of Power Purchase Agreements (PPAs) and ensure future PPAs are aligned to the least cost power development plan (LCPDP).
President Uhuru Kenyatta directed Energy Cabinet Secretary Charles Keter to ensure implementation of the proposals by end of 2021.
