President Uhuru Announces 30 Percent Reduction in Electricity Cost

President Kenyatta has announced plans to reduce the cost of electricity by 30 percent.

Speaking during the 58th Jamhuri Day celebrations at Uhuru Gardens in Nairobi on Sunday, Kenyatta said the plan will be fully implemented by March 2022.

The reduction of power cost will be implemented in two tranches of 15 percent each, with the first taking effect this month. 

“The first 15% archived through initial actions focusing on system commercial losses and this will be reflected in people’s bills in December of this year,” Kenyatta stated. “A further 15% reduction will happen in the first quarter of 2022.”

The president says the Ministry of Energy and other government departments have initiated engagements with Independent Power Producers (IPPs) aimed at renegotiation of power purchase agreements so as to give better value for money to consumers.

He urged IPPs to demonstrate goodwill as the government seeks to make the energy sector a greater catalyst in national development.

In October, the president directed the Ministry of Energy to fast-track the implementation of the recommendation of the Presidential Task Force on Power Purchase Agreements which targeted to restructure the sector in order to reduce the cost of power by at least 33 percent.