Nairobi — Kenyans are set to enjoy cheaper electricity bills after the National Treasury issued a Sh7.05 billion subsidy to Kenya Power to allow it to cut electricity bills by a further 15 percent.
President Uhuru Kenyatta during the last Jamhuri Day celebrations had directed a tariff review to cut power prices by 30 percent.
The reduction was expected to see consumers get a 15 percent drop in the cost of power by January this year and another 15 percent in March.
Only the first 15 percent tranche was implemented seeing the cost of buying a unit of electricity drop from Sh 25.9 in December to Sh21.8 in February.
The Ministry of Energy says it is still engaged in extensive negotiation sessions with 77 IPPS which have established and clarified a pathway to the delivery of the next 15 percent reduction in power tariffs.
In a report to lawmakers, the Budget Committee of the National Assembly revealed that the subsidy is set to shield the utility from the effects of the electricity prior to implementation of the second phase.
“To shield KPLC from the effects of the electricity price reduction prior to the implementation of this second phase, the company has been allocated Sh7.05 billion in the proposed budget for 2022/23,” the Budget and Appropriations committee said.
“There is slow progress in implementing the recommendations of the Presidential Taskforce Report on the review of the power purchasing agreements (PPAs) to reduce electricity prices by 33 percent,” the MPs noted.
A month ago, the Ministry of Energy had called on the public to avoid speculating about the negotiation process on the reforms in the energy sector such as the next 15 percent reduction in power tariff.
“We urge the public and members of the fourth estate to avoid unqualified speculation on the negotiation process and allow the Government of Kenya to provide the necessary updates on the reforms in the energy sector,” the Ministry said in a statement.
Energy CS Monica Juma said the ministry continued to hold formal engagements with Independent Power Producers ( IPPs ) within the framework of the ongoing wide-ranging reforms in the energy sector.
The process, which started in March, seeks to contribute to the delivery of the constitutional mandate of the Ministry of Energy which is to provide clean, reliable, sustainable low – cost power.
“The Ministry of Energy remains steadfast in its resolve to drive these irreversible reforms and calls upon all stakeholders, particularly the IPPS to reciprocate the Government’s demonstrated good faith as we finalize the negotiation process,” the statement concluded.