The National Assembly’s Departmental Committee on Energy has tabled proposals to reduce electricity costs for Kenyans.
The recommendations, set for discussion in Parliament, target key reforms at Kenya Power and the Energy and Petroleum Regulatory Authority (EPRA).
One major proposal seeks to have Kenya Power buy electricity from independent power producers (IPPs) in Kenyan shillings instead of foreign currencies. This shift aims to protect consumers from the adverse effects of exchange rate fluctuations when the dollar strengthens against the shilling. To support this, the committee plans to amend the Energy Act, CAP 314.
The committee also emphasized the need for competitive pricing among IPPs, ensuring that only producers offering the lowest rates secure contracts.
Additionally, the committee is pushing for greater transparency in the operations of IPPs. It has directed the Business Registration Services (BRS) to submit a report within six months, detailing the owners, shareholders, and directors of all IPPs in Kenya. This requirement aligns with Section 93A of the Companies Act, 2015.
To further enhance accountability, the committee recommended that new power purchase agreements only involve entities that fully disclose and register their beneficial ownership in compliance with the law.
MPs debated the motion during Tuesday’s afternoon session, with the outcomes expected to shape future policies in Kenya’s energy sector.
These proposals aim to lower electricity costs and ensure fairness and transparency in the energy market, offering potential relief to millions of Kenyan households.
