This archive report was first published on 12 December 2021.
President Uhuru Kenyatta has announced a significant reduction in electricity costs, effective from this month. The cost of electricity will decrease by 15 percent, marking the first tranche of a two-part reduction aimed at cushioning Kenyans and entrepreneurs from high energy costs.
Speaking during the Jamhuri Day Celebrations at Uhuru Gardens on December 12, 2021, the President outlined the plan to implement the reduction in two stages. The first 15 percent reduction will be achieved through initial actions focusing on system and commercial losses, reflected in December bills, while a further 15 percent reduction will be implemented in the first quarter of 2022.
The move comes after the President issued a directive in October 2021 to the Ministry of Energy to fast-track the implementation of the recommendations of the Presidential Taskforce on Power Purchase Agreements. The government had previously frozen all pending and ongoing contracts with independent power producers to review existing agreements and lower electricity costs.
According to the Energy Cabinet Secretary Monica Juma, the government appreciates the emergence of independent power producers as key elements in the power sector value chain but cannot ignore the reality of the serious challenges that abound in the power sector.
