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New Order by Uhuru to See Cost of Electricity go Down by Over 30 per cent

akirimi | 2 years ago

Nairobi, September 29

President Uhuru Kenyatta has order Kenya Power to immediately implement recommendations by a taskforce he formed in March to reduce the cost of power by a third.

In a statement September 29, Mr Kenyatta ordered the Cabinet Secretary in charge of Energy, Mr Charles Keter, to ensure the recommendations of the taskforce are implemented immediately.

The Presidential Taskforce on Review of Power Purchase recommended that Kenya Power reviews and renegotiates contracts with Independent Power Producers (IPPs) to secure immediate reduction in Power Purchase Agreements (PPA) tariffs within existing contractual arrangements.

According to the taskforce, the renegotiated contracts will see power costs go down by 33%.

In this case, a person who has been paying Ksh500 per month will now pay Ksh300 once the recommendations are instituted.

The taskforce has also recommended that Kenya Power cancels with immediate effect of all unconcluded negotiations of Power Purchase Agreements and ensure future PPAs are aligned to the Least Cost Power Development Plan (LCPDP).

Mr Kenyatta formed the taskforce following complaints from industrialists over the high cost of power. The manufacturers had complained of the escalating cost of electricity making their products expensive in the long run.

Kenyans have also been accusing Kenya Power of exaggerating electricity bills and reducing the number of tokens for amounts payable.

Kenya Power has also been in the headlines for the wrong reasons with increasing cases of grafts facing top executives in the parastatal.

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