The National Assembly’s Departmental Committee on Energy in Kenya has proposed measures to lower electricity costs, focusing on reforms at institutions like Kenya Power and the Energy and Petroleum Regulatory Authority (EPRA). Key recommendations include:
- Denominating Power Purchase Agreements (PPAs) in Kenyan Shillings: To mitigate the impact of currency fluctuations, the committee suggests that all new PPAs with independent power producers should be in Kenyan shillings instead of foreign currencies. This would require an amendment to the Energy Act, CAP 314.
- Competitive Power Purchasing: The government should prioritize purchasing electricity from producers offering the lowest prices to enhance cost efficiency.
- Transparency in Ownership: Within six months, the government is urged to disclose the ownership details of all independent power producers, including their directors, shareholders, and beneficiaries, as per the Company Act, 2015. Future agreements would require full disclosure of beneficial ownership.
The proposals will be debated in Parliament during a scheduled session.
