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MACHEL WAIKENDA: Cheaper power a game-changer

For the longest time, power has been unnecessarily expensive, increasing the cost of living.

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by The Star

Realtime04 October 2021 - 12:22
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In Summary


  • Reducing the cost of power also means that the cost of living will consequently reduce
  • It also reduces over-reliance on forms of energy that are not good for the environment

A Vixen who was taking her babies out for an airing one balmy morning, came across a Lioness, with her cub in arms. "Why such airs, haughty dame, over one solitary cub?" sneered the Vixen. "Look at my healthy and numerous litter here, and imagine, if you are able, how a proud mother should feel."

The Lioness gave her a squelching look, and lifting up her nose, walked away, saying calmly, "Yes, just look at that beautiful collection. What are they? Foxes! I've only one, but remember, that one is a Lion."

Last week, President Uhuru Kenyatta received the report of the Presidential Taskforce on Review of Power Purchase Agreements that he constituted in March.

One of the findings was that the multiple agreements were not valuable or effective in ensuring that there was equitable and affordable electricity in the country.

Kenya Power's annual report 2020 shows the company spent Sh93.9 billion on fuel and non-fuel produced power, with units coming from IPPs being more expensive.

The task force was constituted in response to calls from Kenyans to address concerns about the high cost of electricity for both individual consumers and enterprises.

Among the key findings was that there was a vast differential between KenGen and Independent Power Producer tariffs and electricity dispatch allocations.


The task force also said there is an uncoordinated institutional architecture that inadvertently contributes to enhanced operational costs passed on to consumers.

A recent audit showed that Kenya Power spends an average of almost 15 times more to buy power from IPPs compared to that from KenGen, passing the high bill to consumers.

As a result, the President welcomed the recommendation that establishes a path towards the reduction of the cost of electricity by more than 33 per cent within four months.

Uhuru directed the Energy Cabinet Secretary to immediately put in place mechanisms that will lead to the implementation of the recommendations.

The consequence of the proposed interventions is that a consumer who previously spent Sh500 per month on electricity shall by December 31, 2021 pay Sh330 per month.

This move has been welcomed across the board. For the longest time, power has been unnecessarily expensive and as a result, increasing the cost of living.

The move to reduce the pricing of electricity will be met with excitement, especially in manufacturing, where the cost of power takes up a big chunk of monthly expenses.

Many manufacturers have complained about the high cost of power, which increases the cost of production which is passed on to the consumer, and therefore any reduction would be very helpful.

Reducing the cost of power also means that the cost of living will consequently reduce. It also reduces over-reliance on forms of energy that are not good for the environment.

As all this is done, Kenya Power must take a critical look into its operations, make it more efficient, analyse relationships with independent power producers and create a leaner, corruption-free and more profitable organisation.

Kenya power has remained ineffective and should work to ensure that it improves its efficiency while making electricity affordable for all Kenyans.

We must also create an environment where Kenyans are encouraged to own electric vehicles, thereby reducing dependence on fossil fuels. This will also reduce the wastage of power that is generated and cannot be stored.

And as energy usage increases, we must explore ways to increase power to the national grid, through community power projects and national clean energy solutions. These projects can be an extra source of income for many communities, and will boost power output to the national grid.

The President showed his commitment to the proposed reforms by making changes in the leadership of the Ministry of Energy. The new leadership must do all in its power to ensure that the expected results are achieved within the next four months.

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