MPs direct Energy CS to develop policy within a year for renegotiating power deals

MPs direct Energy CS to develop policy within a year for renegotiating power deals
MPs direct Energy CS to develop policy within a year for renegotiating power deals - Energy Cabinet Secretary Opiyo Wandayi before the National Assembly on February 25, 2025. (Photo: National Assembly)
Energy Cabinet Secretary Opiyo Wandayi before the National Assembly on February 25, 2025. (Photo: National Assembly)

Listen to article

3 min listen
Audio reading is not supported on this browser.
Ready

Thanks for listening. Continue with a related story, or tap the speaker icon on the next page to listen.

Related story

Police seize one tonne of stolen power conductors, two suspects arrested

Lucy Mumbi  ·  1 week ago
Read next Opens a fresh page.

The National Assembly Energy Committee said a reduction in the prices charged by big electricity producers would give Kenya Power room to lower electricity bills without affecting its financial stability.

Members of Parliament have directed Energy and Petroleum Cabinet Secretary Opiyo Wandayi to develop a policy that will guide the government’s plan to renegotiate electricity agreements with major power producers in a bid to lower wholesale prices and reduce the cost of power for consumers.
The National Assembly Energy Committee said a reduction in the prices charged by big electricity producers would give Kenya Power room to lower electricity bills without affecting its financial stability.
The committee wants the policy to provide a framework for affordable electricity procurement, regular review of power purchase agreements (PPAs) and competitive sourcing of electricity generation.

More To Read

“The Cabinet Secretary for Energy and Petroleum shall, within 12 months of the adoption of this report, revise the policy to provide a clear framework for least-cost power procurement, periodic review of power purchase agreements (PPAs) and competitive procurement of electricity generation,” the committee said in the report.
“The framework shall promote transparency, affordability and value for money, while supporting the government’s ongoing efforts to reduce the cost of electricity through the renegotiation of legacy PPAs, without compromising security of supply, contractual obligations or investor confidence.”
The legislators said the proposed changes are aimed at supporting ongoing government efforts to bring down electricity costs while ensuring that power supply remains stable and contractual obligations are respected.

Latest Stories

However, the plan faces questions over its implementation because existing power purchase agreements are legally binding. Any forced changes to the contracts could expose the government to legal disputes from power producers.
Electricity prices have reduced over the past year, with the government seeking to maintain the decline as it works to ease pressure on the cost of living ahead of next year’s General Election.
Official data shows that 200 kilowatt-hours (kWh) of electricity cost an average of Sh5,476.34 last month, compared to Sh5,738.52 during the same period a year earlier.
Independent power producers (IPPs) have previously rejected attempts by the government to unilaterally lower wholesale electricity tariffs, arguing that such a move would affect their earnings.
In 2022, the government attempted to push IPPs to reduce their wholesale tariffs as part of efforts to enable Kenya Power to cut electricity prices by 15 per cent.

Other Topics To Read

Top Stories Today

Comments

0
Loading comments...

Trending

Somalia | |
Northern Kenya | |
Somalia | |
Sports | |
Videos | |
News | |
News | |
Business | |
Politics | |
News | |

Latest Stories

Faki, Mwinyi accuse state of defying court order in Changamwe demolitions
Videos | |
Oil prices jump 4 per cent to Sh10,203 per barrel amid US-Iran tensions over Strait of Hormuz
Business | |
Sudan sentences RSF leader Mohamed Dagalo Hemedti, 15 commanders to death in absentia over Darfur killings
Headlines | |
You wake up feeling older every morning? Here's what your body may be trying to tell you
Headlines | |
President William Ruto’s preferred running mate in 2027
Infographics | |
Nairobi County sets record with Sh15.4 billion own-source revenue in FY 2025/26
City Affairs | |
KNCHR demands arrests, prosecutions over violence and voter bribery ahead of Ol Kalou by-election
Headlines | |
Leaders condemn demolition of 170 houses in Changamwe despite court order
Coast | |
Popularity of presidential aspirants
Infographics | |
Court of Appeal clears way for fresh recruitment of Wajir assistant chief
Headlines | |
Kalonzo and Sifuna emerge as most preferred opposition pairing in new Infotrak poll
Headlines | |
Court of Appeal upholds suspension of Myra IVF Clinic child trafficking probe
Headlines | |

Popular Stories This Week

Heavy rains forecast across Kenya this weekend, residents urged to take precautions
Charity Kilei |
Tanzania bans use of foreign currencies for local transactions
Maureen Kinyanjui |
Pakistan working on second round of US-Iran peace talks - reports
DW News |
Turkish airlines to suspend 18 international routes starting May
Mary Wambui |
KMTC announces 5,000 training slots for March 2025 intake
Charles Adinda |
State directs Saccos to cover losses from KUSCCO scandal
Eastleigh Voice Reporter |
Govt to slash civil servants’ hardship allowances in policy overhaul, saving Sh6bn annually
Maureen Kinyanjui |
Denmark suspends green-sector work permit processing for applicants from Kenya, Uganda and Tanzania
Rachael Mutabasi |
Forgot your Safaricom number? Here is a simple way to get it
Margaret Wanjiru |
Defence CS Soipan Tuya among 52 graduates at National Defence College ceremony
Mary Wambui |
Eliud Kipchoge hails historic marathon day as Sawe breaks two-hour barrier
Amina Wako |
Gachagua impeachment challenged in Court as lawyers allege constitutional violations
Carolyne Kubwa |
Marathon world record holder Sawe receives heroic welcome after historic London Marathon triumph
Erick Kariuki |
KCSE exam results to be released in January as KNEC enhances cheating scrutiny
Maureen Kinyanjui |
OpenAI reportedly building AI-powered smartphone to rival iPhone
Margaret Wanjiru |
Sabastian Sawe, Hellen Obiri carry Kenya’s hopes in London Marathon showdown
Amina Wako |
Details of the new salary structure, housing allowance changes for civil servants
Maureen Kinyanjui |
Passport shock: Kenyans to pay Sh12,500 as cheaper options disappear from eCitizen portal
Lucy Mumbi |
From endometriosis, IVF to loss and healing: A journey through motherhood and grief in the ‘Circle of Hope’
Charity Kilei |
UN: Don't allow Israel-Iran conflict to spark new refugee crisis
DW News |
Ruto awards Sawe Sh8 million, car after historic sub-two-hour London Marathon run
Erick Kariuki |
Exclusive: Somali referee Omar Artan secures US visa, cleared to officiate at 2026 FIFA World Cup
Bashir Mbuthia |
Why Instagram is removing end-to-end encryption feature for direct messages
Margaret Wanjiru |
How to make eesh/ceesh, the light everyday bread loved in Eastleigh
Margaret Wanjiru |
Sudan, South Sudan, DRC and Nigeria drive global hunger crisis affecting 266 million – UN report
Bashir Mbuthia |
Somalia’s risky power extension amid emerging rivalries
Addis Standard |
Nairobi set for rail transformation as gov’t, World Bank partner on 10 major commuter projects
Lucy Mumbi |
OPINION: Shifting alliances, growing threats: Eritrea’s shadow over Tigray, rising risks across northern Ethiopia
Addis Standard |
Rwanda, Tanzania set to fast-track Dar–Kigali SGR in new trade shift
The New Times |
Instagram finally lets users reorder 'carousel posts' after publishing
Margaret Wanjiru |