Consumers in the country are hopeful the new regime will address the high cost of electricity and fuel, amid expected reforms in the energy ministry.
Eyes are on Cabinet Secretary appointee Davis Chirchir who is making a comeback to the powerful docket.
The energy ministry controls some of the cash-rich parastatals in the government, among them Kenya Power, KenGen, Kenya Pipeline Company, Geothermal Development Corporation, and Kenya Electricity Transmission Company (Ketraco).
Some of them have been riddled with mismanagement of funds and questionable dealings which Chirchir has to deal will which could lead to a possible shake up in top positions.
He will have to appoint the next Kengen chief executive after Rebecca Miano was nominated to the Cabinet to head the East African Community (EAC), Arid and Semi-arid, and Regional Development docket.
At Kenya Electricity Transmission Company Limited (KETRACO), questions have been raised about its contracts with Lake Turkana Wind Power (LTWP) Project. The last parliament was probing the matter before it's life came to an end.
In February, its former managing director, now Kakamega governor Fernandes Barasa resigned before grilling by MPs over excess payment of over Sh6 million to the LTWP.
Kenya Power has equally had its share of procurement queries.
Last December, five senior managers were sent home to pave way for a forensic audit following graft allegations.
The utility firm has also had a high turnover of chief executives which Chirchir will be expected to end.
Apart from the corporations, focus will also be on Chirchir's handling of Independent Power Producers (IPPs).
An effort to review expensive Power Purchase Agreements between Kenyan Power and the IPPs during former President Uhuru Kenyatta’s tenure faced hurdles, frustrating the government’s efforts to cut power bills by at least 30 per cent.
This has left consumers grappling with high bills mainly driven by the Fuel Energy Charge.
Some of the IPPs sell electricity up to 35 times more than the cheapest generator—KenGen, which offers electricity to Kenya Power at a wholesale price of about Sh7 per kilowatt hour (kWh).
The consumer Federation of Kenya (Cofek) yesterday said it expects the CS to deal with the IPPs and taxes on power bills, with hopes he can bring the cost of a unit of electricity to $2 cents.
“Chirchir is an old hand in energy and petroleum so he knows the issues. The expectations are more on his side,” Cofek Secretary General Stephen Mutoro said.
The CS also comes back into the energy docket at a time when petroleum product prices have hit a historic high, driving up the cost of transport, manufacturing, farm production among others.
According to the Kenya Association of Manufacturers (KAM), industries in Kenya have been negatively impacted by the high costs of power, which increases the cost of production.
“We urge the government to suspend some of the taxes on fuel as an alternative mechanism to shield the country from the high cost of fuel,” KAM told the Star.
Chirchir is also expected to look into the push to automate the Open Tender System used for fuel products imports, with independent dealers and small Oil Marketing Companies seeking to end the dominance by major companies.
“It will be a tough balancing act for the incoming CS noting the energy sector is also a very sensitive and delicate one. It can make or break an economy,” an energy expert who is also an advisor to the ministry, told the Star.
Chirchir whose appointment is subject to approval by Parliament was first appointed in 2013 by former President Uhuru Kenyatta, before being suspended in 2015 after alleged involvement in corruption.
He would then serve as Chief of Staff in the office of the deputy president, previously occupied by William Ruto before he was elected President on August 9.
The energy ministry will be among the key offices that will drive President Ruto’s ambitious industrial and commercial growth plans, while also bringing down the cost of living.
