This archive report was first published on 4 October 2021.
Kenya Power and Lighting Company is set to undergo a major overhaul aimed at reducing electricity costs in the country. The overhaul, which was announced by Ministry of Interior Cabinet Secretary Fred Matiangi, will begin immediately.
Speaking in Isinya, Kajiado county on Sunday, during a fund drive for the construction of the South Nairobi-Kajiado branch headquarters of the Seventh-day Adventist Church, CS Matiangi said a task force appointed by the President will implement the proposed KPLC reforms.
According to the CS, the government will broaden the task force's proposals to undertake a broader review and overhaul of the entire energy sector. The county's competitiveness in attracting local and foreign investors has been impacted by the high cost of power, which is also causing businesses to lose money.
CS Matiangi also stated that the government will launch an aggressive program to address the challenges in the energy sector, with the aim of reducing fuel prices and electricity bills. 'In the coming weeks, we will launch an aggressive program to address the challenges in the energy sector. We are certain that the prices of fuel will not only come down but even the bills and the costs of electricity we are paying will come down.'
The overhaul comes after a taskforce on KPLC chaired by John Ngumi recommended an overhaul of the KPLC to be overseen by the Cabinet, as well as a review of the Power Purchase Agreements (PPAs) between KPLC and private enterprises. The taskforce attributed the country's high electricity costs to contracts that favored independent power producers at the expense of KPLC and consumers, and recommended that all such contracts be reviewed within four months.
