- Kenya to negotiate with IPPs
- The government aims to reduce electricity tariffs for the end-users
The Kenyan Energy Cabinet Secretary, Monica Juma, has begun negotiations with Independent Power Producers (IPPs) on developing sustainable energy innovations in the country. The negotiations are in line with the recommendations of the government task force, which aims to reform and improve operational efficiency in the power sector.
“I would like to formally invite all IPPs to come forward to the negotiating table so that we can engage towards a win-win solution that secures a sustainable energy sector in the Republic of Kenya,” Juma said.
”Whereas the Government of Kenya appreciates the emergence of IPPs as key elements in the power sector value chain, we cannot ignore the reality of the serious challenges that abound in the power sector,” she added.
The state-owned utility Kenya Power is currently undergoing reforms initiated by the Kenyan government aimed at reducing electricity tariffs for the end-users. Last month, the Kenyan government froze all pending and ongoing contracts with IPPs following the revelation by the task force that the IPPs accounted for 47% of all procurement costs with only 25% power volumes.