Kenya Private Sector Alliance (KEPSA), led by the Energy and Extractives Sector Board Chair Mr George Aluru, on 18^th July 2023 presented submissions to the National Assembly Departmental Committee on Energy regarding the reduction of electricity cost. The committee, which is chaired by Hon. (Eng.) Vincent Musyoka is conducting an inquiry into the escalating cost of electricity in the country and measures to reduce the cost.
 
The inquiry follows a resolution by the National Assembly in April 2023, arising from a Motion by Hon. Jane Kagiria that tasked the Committee to look into the matter in efforts to enable access to energy and ease the cost of production and doing business in the country.
 
During the hearing, KEPSA highlighted some of the challenges bedevilling the energy sector and the progressive reforms before outlining proposals for lowering the current cost of power. The proposals were segmented into immediate measures, medium-term measures and long-term measures which will ensure the country has a sustainable power sector, delivering affordable electricity going into the future.
 
According to the KEPSA Memorandum that was presented by Mr Peter Gichango – KEPSA PPD Officer, immediate measures to be considered include: Strengthening the grid and eliminating transmission bottlenecks; Operational efficiency at the Kenya Power and Lighting Company (KPLC); Relooking at taxes and levies on electricity bills; and Encouraging a 24-hour economy.
 
KEPSA also proposed that medium-term measures should include: Stabilizing the investment environment; Strict Adherence to the Least Cost Power Development Plan (LCPDP); Exploring the extension of Independent Power Producers (IPP)- Power Purchase Agreements (PPA) tenures to spread debt over longer period; Use of IPP plants to the full extent of their economically useful life; Competitive tendering for acquisition of new power capacity; Completing the regulatory work to open the Kenyan market to further competition and business models; and Build up a portfolio of low capacity charge peaking plants.
 
The KEPSA team also added that in the long term, the country should consider encouraging local equity and debt participation in power projects as well as further market reforms to ensure more competition and integration within the East African Power Pool.
 
Other stakeholders who presented their proposals yesterday included The Institution of Engineers of Kenya (IEK) and the Kenya Association of Manufacturers (KAM).