Kenya Power Has Paid Sh90bn To Private Electricity Producer Since 2010

In his defense, Okwoku said capacity charge is a fixed charge that is provided for in the PPA framework.

In the Power Purchase Agreement, Rabai Power is expected to supply electricity to the Kenya Power for 20 years ending in 2030 then give its thermal plant back to the country’s electricity distributor.

Okwoku added that the agreement is an investment that is expected to make profit through interest

“It is just like a loan. If you take a loan, you must pay it back, in installments, principle plus interests. Then after 20 years, Kenya Power will repossesses the plant,” he said.

Duale however interjected arguing Rabai Management was taking the arrangement as a favour yet the government provided the land where the plant sits on and pays for fuel security storage.

Rabai is ranked as one of the most expensive suppliers of electricity to Kenya Power, a situation which has been linked to skyrocketing electricity bills in the country.

With the hiked fuel prices in the September-October review, electricity bills are set to soar signaling tough economic times in the country.

The Energy and Petroleum Regulatory Authority Tuesday hiked pump prices by Sh9.5 average.

EPRA announced the pump prices for super petrol, diesel and kerosene would increase by Sh7.58, Sh7.94, and Sh12.97 per litre respectively in Nairobi.

In Nairobi, super Petrol, diesel, and kerosene will sell at Sh134.7 Sh115.6, and Sh110.8 respectively.

After a long back and forth debate between the MPs and Okwoku, the committee resolved to request for Rabai’s financial audit and invite Kenya Power officials to explain why it committed to such an expensive agreement with a company whose shareholders are majorly foreigners.