Kenya Power Ditches Plans To Raise Electricity Bills

Kenya Power has scrapped plans to raise tariffs, instead focusing on lowering prices, reducing energy theft, and recovering over Sh27 billion in unpaid bills.

“Kenyans are still burdened financially, and we have no intention of adding to their burdens.”

The shift in tone comes just days after President Uhuru Kenyatta established a team to study the country’s wealth.

It buys power from 20 generators, but KenGen, OrPower and Lake Turkana Wind Power account for 79 percent of the firm’s bulk electricity purchase costs.

Under a typical power purchase agreement, a power producer gets paid for any electricity generated, even if it is impossible for Kenya Power to sell it to consumers due to excess capacity and other reasons.

The wholesale power producers, including Gulf Power, Iberafrica, Tsavo Power last year, have protested plans by Kenya Power to review bulk electricity prices citing low demand in the wake of Covid-19 pandemic.