The State has declared the Kenya Power and Lighting Company(KPLC) a special government project.
“Our bills are unsustainable as they are today. We cannot continue this way,” said Matiang’i on Thursday.
The Interior CS spoke when he chaired a crisis meeting with Kenya Power management and staff.
CS Matiang’i announced that an inter-ministerial team has been set up to audit the parastatal and oversee urgent reforms immediately.
A multi-agency team comprising the Directorate of Criminal Investigations, Financial Reporting Center, Assets Recovery Authority and other investigative agencies will also be assembled to investigate system losses.
“We are going to do a forensic audit of some of our systems and procedures. We are working jointly at an inter-ministerial level to reduce the system losses including the theft of power. We will address all challenges that result in passing unnecessary costs to consumers,” Matiang’i said.
The Kenya Power Clean Up also saw Matiang’i order the power distributor to immediately suspend ongoing and pending negotiations with independent power producers.
Kenya Power will also review existing agreements in a bid to lower the cost of electricity.
“The government has ordered review of existing PPAs to be prioritised in a bid to lower cost of electricity procured by Kenya Power and therefore the unit cost of electricity billed to clients thereby lowering cost of electricity to Kenyans,” he said.
Matiang’i, said the decision was in line with the recommendations of the Presidential Task Force on the Review of PPAs entered into by KPLC following widespread concerns of high electricity bills.
He added a meeting of all state agencies in the energy sector will be convened urgently to synergize and align the country’s demand-vs-supply needs of the country and to work out modalities of bringing down energy costs.
He also assured fuel prices will drop in the next maximum pump price review by the Energy and Petroleum Regulatory Authority which is set for next week.
“The government never makes promises in vain. We have sincerely heard the cry of our fellow citizens and we live and interact with people on a day to day basis,” Matiang’i said.