Energy CS Monica Juma has said her ministry is working to reduce power production costs for affordable electricity to consumers.
In his Jamhuri Day speech, President Uhuru Kenyatta directed the Energy ministry to hasten the implementation of the recommendations of the Presidential Taskforce on Power Purchase Agreements.
The President said the cost reduction will be implemented in two tranches of 15 per cent each.
The first 15 per cent will be achieved through initial actions focusing on system and commercial losses to be reflected in the December bills, and a further 15 per cent reduction in the first quarter of 2022.
Juma said her ministry is engaging independent power producers in the renegotiation of power purchase agreements.
This will give better value for money for consumers.
“I urge the power producers to demonstrate goodwill as we seek to make our energy sector a greater catalyst of our national development,” she said.
Speaking at Wekoye Primary school in Tana River on Saturday, Juma said the measures are in place to minimise system and commercial losses.
The CS said the December power bills will be lower by 33 per cent as earlier promised.
Juma denied claims some of the private power providers had refused to negotiate for reducing power tariffs.
She said every private power provider at the Kenya Power and Lighting Company signed their contracts individually and not collectively.
“We do not have a collective called the IPPs. Power producers have signed contracts individually and I called on any IPP that is willing to engage with the government to indicate doing so,” Juma said.
“We have received more than 50 per cent of IPPs who have come forward. We have had initial conversations so the notion about the rejection of negotiations by IPPs is wrong.”
Last week, the government launched the Electrification of Public Facilities Project programme to connect power to over 1,200 public institutions in 36 counties.
The project will be implemented by the Rural Electrification and Renewable Energy Cooperation for Sh6.4 billion.
It is divided into Nyanza and Western region, North Rift, South Rift, Central and Upper Eastern and Lower Eastern and Coast regions.
Public facilities to be connected to power include markets, hospitals, educational institutions, tea buying centres, coffee factories and administration centres among others.
To facilitate this project, the government secured credit financing from its Arab Development Partners for rural electrification of public facilities and households in selected rural priority areas in the country.
The financiers include the Arab Bank for Economic Development for Africa, OPEC Fund for International Development, Saudi Fund for Development, and the Abu Dhabi Fund for Development.
Edited by Kiilu Damaris
