This archive report was first published on 5 September 2019.
Published on September 5, 2019, Kenya Power and the energy sector regulator, the Energy and Petroleum Authority, face a pressing challenge: keeping electricity costs affordable for consumers.
Kenyan homes and industries are already paying significantly more for power compared to other economies like South Africa, Ethiopia, and Egypt. This has had a ripple effect, increasing the cost of living for households and energy costs for manufacturers.
These high power costs run counter to the government's agenda to build affordable homes for Kenyans and spur manufacturing. It also underscores the need for Kenya to focus on generating and distributing cheaper power.
Fortunately, the country is already harnessing wind power in Turkana, and some counties like Meru have signed partnership agreements to generate green and low-cost power. The agencies involved in the power sector should explore scaling up such projects to bring down energy costs in the short, medium, and long-term.
Energy plays a critical role in the growth of the economy, and companies like Kenya Power must balance their pursuit of profitability with the bigger picture of fuelling the economy. There are many ways for the company to increase profitability, such as controlling its spiraling costs and connecting more customers to its grid.
Raising the cost per unit should be the last option. Instead, both the company and the regulator must find common ground to strike a fair and just deal that cushions consumers from an increase in electricity costs.
