This archive report was first published on 7 October 2021.
President Uhuru Kenyatta's directive to reduce electricity tariffs by 33 percent by Christmas has led to the formation of an inter-ministerial committee to conduct a fresh audit on Kenya Power's supply and demand needs, and pricing policies.
On Thursday, Interior and Coordination of National Government secretary Fred Matiang'i announced the formation of the committee, which will oversee reforms at the utility firm and conduct a forensic audit of its systems and procedures.
The committee's membership will draw from various government agencies, including the Directorate of Criminal Investigations, the Central Bank's Financial Reporting Centre, and the Assets Recovery Agency.
According to Dr. Matiang'i, the committee will work jointly to reduce system losses, including the theft of power, and address all challenges that result in passing unnecessary costs to consumers.
Dr. Matiang'i made the announcement after meeting the firm's board of directors, senior management team, and officials from the Ministry of Energy in Nairobi.
He emphasized that the government is concerned about the high cost of power and has taken tough decisions to deal with challenges in the sector, with the focus being the bringing down of the cost of power.
As part of the efforts to reduce the cost of power, the government has frozen all pending and ongoing contracts with independent power producers, and the utility firm is reviewing existing agreements to lower the cost of electricity.
The State aims to attract foreign direct investments and promote industrial growth, which has been hampered by the high cost of power.
