KEPSA, through the Energy Sector Board, last week met with the Senate Standing Committee on Energy to advocate for reforms aimed at boosting the competitiveness and efficiency of Kenya's energy sector. The 21^st May 2025 engagement, led by Eng. James Mwangi (KEPSA Director, Energy & Professional Services) for KEPSA and Sen. Oburu Oginga (Chair, Senate Standing Committee on Energy) for the Senate, focused on identifying critical areas where parliamentary support could unlock private sector potential.

A key concern raised was Kenya's high energy costs, which hinder its competitiveness internationally. KEPSA highlighted that a 2021 moratorium on Power Purchase Agreements (PPAs) inadvertently led to power shortages and project delays. KEPSA therefore lauded Parliament's move to lift this moratorium, recognising its potential to alleviate these issues. To enhance energy security and reduce reliance on a single source, KEPSA also advocated for a second LPG import facility, especially in light of recent safety concerns following an LPG tank explosion. Furthermore, transparency measures, such as the 4th amendment, aimed at identifying beneficial owners of PPAs, received KEPSA's full support as crucial for ensuring fairness within the sector.

The discussion also touched on KEPSA’s involvement in governance issues, with some Senators, including Hon. Edwin Sifuna, suggesting that KEPSA endorse business-friendly candidates. Eng. James Mwangi reiterated KEPSA's apolitical stance, emphasising their focus on a business manifesto shared with presidential candidates. Additionally, concerns were raised regarding proposed tax changes in the Finance Bill 2025, specifically the removal of VAT exemptions on renewable energy products, which could inadvertently drive up power costs.

As a direct result of this engagement, KEPSA anticipates significant progress in creating a more competitive and stable energy landscape. The proposed recommendations, including the review of the PPA moratorium and the exploration of a second LPG import facility, are expected to reduce energy costs and enhance supply reliability. Support for the 4th amendment aims to foster greater transparency and investor confidence. Furthermore, ongoing collaboration with the Senate Energy Committee is set to ensure that concerns regarding the Finance Bill 2025 are adequately addressed, ultimately safeguarding affordable energy access for businesses and consumers. This sustained partnership is poised to unlock private sector investment, drive down operational costs for businesses, and secure Kenya's position as a more attractive destination for energy-related ventures.