- Kenya’s National Assembly seeks to regulate all PPAs
- Proposes a new Law
- The Bill seeks to regulate PPP across all sectors of the economy
Kenya’s National Assembly has proposed a Bill that seeks to regulate Public-Private Partnerships (PPPs) across all sectors of its economy. The Parliament queried the disparity in the approved electricity rates between the Independent Power Producers (IPPs) and state-owned Kenya Generating Company. The Parliament, last week, asked state-owned power utility Kenya Power to submit all Power Purchase Agreements (PPAs) for review.
The Public-Private Partnership Bill 2021, sponsored by Majority Leader Amos Kimunya, will mandate Kenya Power to seek the approval of the House of Parliament for every PPA entered into. ”A Cabinet secretary responsible for a contracting authority that enters into a power-producing agreement with a private party shall submit the agreement for approval by the National Assembly”, according to Clause 62 of the Bill. The Bill also states that if the National Assembly fails to approve a PPA within 90 days of a request for approval, the agreement will be deemed approved.
The Bill also empowers the Auditor-General to carry out an annual audit of all Power Purchase Agreements (PPAs).