Energy and Petroleum Cabinet Secretary Monica Juma said in January the cost of power would come down by March 31. This is to fulfil President Uhuru Kenyatta’s promise of reduced electricity bills to homes. This would have seen the cost of power reduce by a third.
Dr Juma promised to institute further cuts in the power sector by streamlining costs to achieve an additional 15% reduction in energy prices in the first quarter.
In her January press statement, the ministry had pledged to deliver the cut in prices by March. “We are working hard at ensuring the next 15% tranche is effected in this quarter [January to March] as promised”. the January press release said.
The IPPs, which are owned by powerful institutions like the World Bank opposed a unilateral push. This is to lower the cost of sale of electricity to Kenya Power, setting the stage for a legal battle.
The fear of a legal tussle with powerful foreign investors forced the State to retreat. And opt for a negotiated deal with the IPPs.
