NAIROBI, Kenya, Jan 20 – The government has unveiled plans to mobilize resources to the electricity sector in a bid to reduce the cost of power and improve reliability.
Treasury CS Njuguna Ndung’u in the Draft Budget Policy statement noted that while generation capacity and total electricity connections have increased considerably in recent years, electricity in the country remains expensive and unreliable.
The country’s cost of power has remained high for the past six months while power outages being reported in the country have also increased marginally partly because of an aging energy network.
Domestic electricity bills rose marginally to Sh26.39 per kilowatt-hour in January from Sh26.29 in December on increased variable charges such as fuel cost charges.
“One of the key contributors to both the cost and quality of power is the aging transmission and distribution network. The investment required to upgrade the network is considerable, more so in the difficult financial situation that the country is in,” said Ndung’u.
Further, as part of the government’s plan to increase clean energy sources and phase out expensive heavy fuel sources, it committed to accelerating geothermal resources development and developing a Liquified Natural Gas (LNG) storage facility in Mombasa.
The move will also contribute to meeting Kenya’s emission reduction commitments.
Ndung’u added that the government will also enforce transparency and public accountability of the electricity sector requiring the Energy Regulatory Commission (ERC) to publish quarterly system, financial, and operational performance reports.
“Further, the Government will delink development initiatives from the Kenya Power and let the company to operate on commercial principle,” he noted.
A policy, regulatory and financing framework for off-grid community-owned development projects (mini and micro-grids) will be instituted.
As part of the government’s e-mobility drive, the Government unveiled plans to roll out electric vehicle (EV) charging infrastructure in all urban areas and along the highways and create incentives for adoption of electric mass transit systems in all cities and towns.
