- Uhuru Kenyatta orders a review of all PPAs with IPPs
- Gives a four-month deadline to the Kenya Power
- To renegotiate energy prices
In a statement issued by the State House, President Uhuru Kenyatta has ordered the state-owned power company Kenya Power to review all existing Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) and also renegotiate the current cost of energy. Kenya Power has four months to complete a review of the PPAs and forward a report to Kenyatta.
Kenya Power has also been barred from signing renewing further PPAs or renewing. This comes as the country is experiencing a rise in the cost of power bills, with a 38-month high in August. In March, President Kenyatta set up a task force to review the PPAs following a revelation that Kenya Power contracted more power than it could sell.
“The President has directed the Cabinet Secretary, Ministry of Energy to secure the immediate implementation of all the recommendations of the Taskforce by Christmas Day, 2021,” the statement read.
“The President has also examined and welcomed the recommendations of the Taskforce that establish a path towards the reduction of the cost of electricity by over 33 per cent within four months.”
Kenya Power has come under immense scrutiny regarding its PPAs and continuous revenue losses.