Kenya’s lawmakers have rejected a proposed amendment to the Energy Act, 2019, which aimed to increase levies on electricity and petroleum.
The amendment, included in the Statute Law (Miscellaneous Amendments) Bill, sought to double the levies collected by the Energy and Petroleum Regulatory Authority (EPRA) from 0.5% to 1%.
National Assembly Energy Committee Chair Vincent Musau led the opposition, warning that the proposed levy hike would exacerbate already high energy costs.
“I recommend deleting the amendment to Section 20(1), which proposed increasing EPRA’s levies on electricity and petroleum. Doubling these charges would place an additional burden on consumers at a time when we are striving to lower energy costs,” Musau asserted.
Legislators strongly supported the decision on the House floor, citing the already heavy tax burden on Kenyans.
“Kenyans are struggling with high electricity bills. Raising EPRA’s levy from 0.5% to 1% is unacceptable, and I fully support removing this amendment. We should focus on lowering energy costs,” said Marakwet West MP Kangongo Bowen.
Mathare MP Anthony Oluoch warned of the broader economic impact, stating that high electricity costs could deter investment and drive investors to neighboring countries with cheaper energy. Funyula MP Wilberforce Oundo also praised the rejection of the amendment, highlighting Kenya’s high electricity costs.
“Kenya has some of the highest electricity costs in the world. I fully support the committee’s stance on rejecting this amendment,” Oundo stated.
The MPs also rejected a proposal to exempt all levies collected from the Consolidated Fund, arguing that it would undermine parliamentary oversight of EPRA’s finances.
In contrast, lawmakers approved an amendment granting EPRA the authority to regulate crude oil, aligning with Kenya’s growing petroleum exploration efforts, especially in Turkana County.
“We are preparing for the regulation of crude oil, not necessarily for domestic use but to manage transit and pipeline operations for potential customers,” Musau explained.
Additionally, MPs passed amendments imposing stricter penalties for energy infrastructure theft, including the forfeiture of vehicles used to transport stolen equipment.
“We must send a strong message to those who steal energy infrastructure,” said Hon. Mary Emaase. “This is a serious offense that plunges entire communities into darkness. Thieves must face severe consequences.”
The Statute Law (Miscellaneous Amendments) Bill, as passed, aims to balance regulatory reforms with consumer protection, ensuring affordable energy while tackling infrastructure theft.
