This archive report was first published on 22 January 2022.
January 22, 2022 - The Energy Ministry has announced plans to review contracts with electricity firms, a move aimed at reducing high electricity costs.
The review is expected to sustain the reduction in the cost of power announced recently, with a 15 per cent cut in electricity tariffs already in place.
Energy Cabinet Secretary Monica Juma said the government is pushing ahead with reforms in the energy sector, including renegotiating power purchase agreements (PPAs) with independent power producers (IPPs).
The reforms are based on recommendations by the Presidential Taskforce on the Review of PPAs, which identified the lopsidedness of PPAs as a major contributor to high electricity costs.
Ms Juma dismissed claims that the contracts leave little for Kenya Power to manoeuvre, saying that no contract is unchangeable.
