Restructuring At Kenya Power begins – Kenyan Business Feed

The overhaul of the Kenya Power and Lighting Company, which is intended to reduce the electricity costs in the country, will begin immediately, Ministry of Interior Cabinet Secretary Fred Matiangi has said.

Speaking in Isinya, Kajiado county on Sunday, during a fund drive for the construction of the South Nairobi-Kajiado branch headquarters of the Seventh-day Adventist Church, the CS said a task force appointed by the President will implement the proposed KPLC reforms.

“In the coming weeks, we will launch an aggressive program to address the challenges in the energy sector. We are certain that the prices of fuel will not only come down but even the bills and the costs of electricity we are paying will come down.” CS Matiangi said. 

The fund drive was attended by his cabinet colleagues Joe Mucheru (ICT) and Eugene Wamalwa (Defense), as well as Kajiado Governor Joseph ole Lenku and other leaders.

According to the CS who also chairs the Cabinet committee on National Government projects, the government will broaden the task force’s proposals to undertake a broader review and overhaul of the entire energy sector.

The county’s competitiveness in attracting local and foreign investors, according to the CS, has been impacted by the high cost of power, which is also causing businesses to lose money.

A taskforce on KPLC chaired by John Ngumi recommended an overhaul of the KPLC to be overseen by the Cabinet, as well as a review of the Power Purchase Agreements (PPAs) between KPLC and private enterprises, in a report submitted to the President on Wednesday.

The taskforce attributed the country’s high electricity costs to contracts that favored independent power producers at the expense of KPLC and consumers, and recommended that all such contracts be reviewed within four months.

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