It has emerged that the Energy Department remained silent for three weeks after completing its commitment to reduce the cost of electricity in the country.
Energy Minister Monica Juma said in January that energy prices would drop by March 31, according to President Uhuru Kenyatta’s promise last year.
The president promised to reduce costs for Kenyans and reduce manufacturing.
The first phase of the 15% electricity price reduction was approved on December 31, 2021.
This is after the Energy Department completed negotiations with private power generation companies.
The second phase was to be implemented by March 31, 2022, the first quarter of this year, in line with Dr. Juma’s commitment.
The decision stemmed from an agreement regarding the amendment of the steam supply agreement (PPA) that the country’s steam distribution company (KPLC) had signed with private companies (IPP).
KPLC reduced its energy bills from January 1 this year after reducing losses in the power supply system.
This loss is due to cases of steam theft and power outages due to the presence of critical cables in KPLC networks.
On Wednesday, Dr Juma refused to answer calls and messages asking him to explain why his ministry had not ordered a reduction in steam prices, as promised in January.
In a press statement, the ministry promised to implement the second phase of energy tariff reduction by March.
“We are working to ensure that the next phase of 15% is implemented between January and March, as promised,” the KPLC statement read.
The 15% reduction in steam prices implemented in January this year helped reduce the purchase price by 200 steps from 5,185 shillings in December to 4,373 shillings in February.
The Energy Department promised that prices would be reduced to this level after the PPA contract was amended.
This is according to a report by a task force appointed by President Kenyatta which found that private companies were selling KPLC steam at a higher price compared to the price of any steam company in the country (KenGen).