Committee to Revoke IPPs Agreements That Hike Electricity Cost

The Senate Committee on Energy Chaired by Nyeri Senator Wahome Wamatinga concluded its two days induction today, by touring Olkaria Geothermal Power Stations.

The Committee on Energy was received as Geothermal Spa by KenGen Acting Managing Director Abraham Serem.

Yesterday, the Committee held consultative meetings with Energy Sector Stakeholders including Kenya Power and Lighting, KenGen, KETRACO, Geothermal Development Company, Rural Electrification and Renewable Energy Corporation (REREC), Nuclear Power Energy Agency (NUPEA) and EPPRA.

In his opening remarks, Nyeri Senator Wahome Wamatinga said that, “We meet at a time when the cost of energy is very high. The cost of a single token of power is currently Ksh. 25.64. This has significantly affected the cost of living of every Kenyan.”

He said that key sectors like agriculture, industrialization, transport and information technology have been adversely affected by high cost of energy.

Companies are choosing our neighbouring countries to set up cottage industries because the cost of energy in those countries is cheaper.

Furthermore, the committee chairman said that, “During my campaign as Senator of Nyeri County, I pledged to make life bearable for the people of Nyeri, when I was elected as Chairperson of this committee, I went back and promised my people to bring the cost of electricity down.”

In addition, he said that When you speak to farmers, they are unable to pump water to their farms due to the higher cost of electricity, therefore food insecurity in the country.

Kenya Power and Lighting company, acting Managing Director Eng. Geoffrey Muli said that the total capacity of electricity in Kenya is 3074 MW, of this 863 MW is geothermal, 838 MW is hydro, 435MW is wind, 90.25 is solar and 720MW is thermal.

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Kenya is blessed with many sources of renewable energy and therefore it is unexplainable to Kenyans how power is still generated using diesel.

Nairobi Senator Edwin Sifuna said that with current clamour on saving the planet through fighting climate change, Kenya should phase out Thermal energy for generation of electricity.

Siaya Senator Dr. Oburu Oginga challenged the Senate committee on Energy to look at the cost Independent Power Producers (IPPs) contracts and review them to reduce the cost of energy in the country.

KenGen generates 70% of electricity consumed in the country and only receives 48% of the total payments by KPLC while other IPPs generate 30% and receive 52% of the total payments by KPLC.

Nyeri Senator Wahome Wamatinga who chairs the committee said that KenGen has the capacity to generate 100% of power consumed in the country.

Therefore, the Senate committee on Energy has resolved to look into all the Independent Power Producers and the Power Purchase agreements signed.

“How is it possible for an IPP to have its power purchase agreement signed in six days while others take more than three years to sign?” asked the Chairperson.

The Senate Standing Committee on Energy resolved to look at the purchase agreement that was signed without the good interest of Kenya should be revoked or renegotiated.

Senators asked for an explanation from KPLC management on why the company enjoys monopoly without competition but still makes losses. KPLC made a half year loss of Ksh. 1.1 billion.

Wajir Senator Abass Sheikh Mohammed gave his first hand account on how electricity is switched off at 6.30pm in Wajir County, the generators have not been fixed since December 2022 in spite of promises to fix it.

The Senate Committee on Energy resolved that by 2027 that counties that are not in electrical grid are brought to the grid according Universal access to electricity as enshrined in Vision 2030.

Finally, the Chairperson implored Energy Sector agencies and stakeholders to come up with a plan to overcome the current forex challenge in global marketing and mitigation strategies.

Members present were Chairman of the Energy Committee, Nyeri Senator
Wahome Wamatinga, Vice Chair, Elgeyo Marakwet Senator William Kisang’ Kipkemoi, Siaya Senator Dr. Oburu Oginga, Wajir Senator Abass Sheikh Mohammed, Nairobi Senator Edwin Sifuna and Turkana Senator James Lomenen.