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Reconsider power purchase agreement moratorium – KAM urges

The association argues that Kenya is currently using a lot of geothermal energy, which has reached a peak of 96%.

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by BOSCO MARITA

News28 May 2025 - 10:34
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In Summary


  • Power Purchase Agreements have a critical role to play in the infrastructure expansion.
  • They are crucial in securing the necessary investment in energy projects with the aim of strengthening the country’s energy infrastructure and security.

Kenya Association of Manufacturers Chief Executive Officer, Tobias Alando, handing over a New Enhanced Flooded Battery (EFB) to a Little Cab Driver

The Kenya Association of Manufacturers (KAM) is warning of power rationing if no investment is made in power purchase agreements and new power stations.

The association argues that Kenya is currently using a lot of geothermal energy, which has reached a peak of 96%.

 “We are left with only 4% of power from geothermal sources. Hydroelectric sources depend on weather, and if the rains stop, we are likely to face power blackouts that could severely impact the struggling manufacturing sector,” noted Kenya Association of Manufacturers Chief Executive Officer, Tobias Alando.

“The Senate and the Parliament need to reconsider lifting the moratorium imposed on the government about the new Power Purchase Agreements (PPA),” he said.

Alando said the moratorium imposed in 2023 has negativity impacted efforts to negotiate better and affordable Power Purchase Agreements with the Independent Power Producers.

Power Purchase Agreements have a critical role to play in the infrastructure expansion, as they are crucial in securing the necessary investment in energy projects with the aim of strengthening the country’s energy infrastructure and security.

Alando spoke during the launch of the New Enhanced Flooded Battery (EFB) – Built for the Demands of Modern Mobility.

The new Powerlast EFB, was launched in partnership with taxi-hailing company Little.

It is designed to help urban drivers, to navigate stop-and-go traffic, eco-conscious vehicle owners with start-stop systems, and commercial fleets, including taxis, ride-share, and delivery vans.

“In line with its commitment to customer-centric innovation, Chloride Exide has partnered with ride-hailing platform Little, enabling real-time user feedback from drivers on battery performance to develop solutions fit for the needs of Kenya’s high-demand mobility sector,” said Chloride Exide’s General Manager, Charles Ngare.

“This battery is more than just a product; it’s a reflection of our investment in Kenyan innovation, local manufacturing, and sustainable mobility,” he added. “With insights from local drivers and cutting-edge technology, Powerlast EFB is designed to keep Kenya moving forward.”

 

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