MOTION TO REDUCE COST OF ELECTRICITY MOVED IN THE HOUSE
Laikipia County Member of Parliament Hon. Jane Kagiri today moved a Motion that seeks to reduce the Cost of Electricity in the country.
Hon. Kagiri pointed out that Kenya Power has entered into Power Purchase Agreements (PPAs) with both KenGen and Independent Power Producers (IPPs) which makes Kenya Power procure electricity from them at unregulated rates. She added that there is a need to regulate all IPPs in the country and publicize their locations, stakeholders, directors, management and their addresses. In addition, she said, “the agreements the IPPs have entered into with Kenya Power should be made public to enable proper scrutiny”.
Further, Hon. Kagiri called upon the Departmental Committee on Energy to undertake an inquiry into the operations of Kenya Power in relation to; agreements entered into with IPPs, factors affecting the cost of electricity including over-reliance on IPPs against available renewable and other energy sources and, measures to be taken to reduce the cost of electricity. .
While seconding the Motion, Hon. Caroli Omondi (Suba South) said Kenyans cannot be burdened to pay for all these expensive PPAs which were entered into without following due process for procurement.
“It is time to introduce a strategic investor for Kenya Power to stabilize its operation and resolve the many challenges facing its operation.” said Hon. Omondi.
The debate on the Floor of House largely pointed out to the issue of monopoly in the sector which is consequently contributing to high cost of electricity for consumers. The Legislators questioned why other players like KenGen are not allowed to distribute power to consumers directly instead of selling it to Kenya Power who are solely tasked with the distribution role.
MPs further observed that the high electricity cost in Kenya has in the past seen investors relocate to other countries, including in the East Africa region and also denied the country new investments by foreigners. Cheap and reliable Electricity will ensure that investors set up their industries in our country and this will go a long way in ensuring the issue of unemployment is solved.