This archive report was first published on 17 November 2021.
Kenya Power has announced that it will not be solely responsible for the cost of reducing electricity prices, as the government aims to lower power tariffs by 33%.
According to Vivienne Yeda, the chairperson of Kenya Power, the company will share the burden of cheap electricity with other players in the supply chain.
Yeda made the statement during an investor briefing, where she noted that the company had last year undertaken not to increase the tariff, which left its revenues low.
She emphasized that any savings realized to reach the 33% reduction will have to be either in terms of operations or efficiencies within the energy sector.
Yeda also stated that the company would be working with the Energy and Petroleum Regulatory Authority (Epra) and other players to find ways of bringing down the cost of electricity as per the president's directive.
Meanwhile, Energy Cabinet Secretary Monica Juma has invited independent power producers (IPPs) to come to the negotiating table to renegotiate their contracts with Kenya Power.
CS Juma gave IPPs up to Friday, November 19, 2021, to express their interest in the talks aimed at reducing the cost of power.
She noted that the task force on the review of power purchase agreements (PPAs) had found that nearly all electricity producers had at some point breached their contracts with Kenya Power.
This means that Kenya Power could force them to renegotiate the contracts or terminate them altogether, giving the State some way out of the expensive PPAs.
CS Juma emphasized that the government's preference is to seek solutions that nurture partnerships and are responsive to the needs of Kenyans and our development aspirations.
