Energy Ministry talks with IPPs ongoing to reform sector

Energy Ministry talks with IPPs ongoing to reform sector

 The Ministry of Energy has confirmed that talks with the Independent Power Producers (IPPs) are ongoing to reform the sector.

In a statement sent to newsrooms, the Monica Juma led Ministry stated that it has engaged in extensive negotiation sessions with 77 IPPs which have established and clarified a pathway to the delivery of the next 15 percent reduction in power tariffs.

“The Ministry of Energy remains steadfast in its resolve to drive these irreversible reforms and calls upon all stakeholders, particularly the IPPs to reciprocate the Government’s demonstrated good faith as we finalize the negotiation process. We look forward to the conclusion of the negotiations as soon as possible and will provide further updates in due course,” part of the statement read.

It called on members of the public and the media to avoid speculation on the negotiation process and allow the Government to provide the necessary updates on the reforms in the energy sector.

The ministry said progress update shall be made public in due course.

The talks which started in March, seek to contribute to the delivery of the constitutional mandate of the Ministry of Energy, which is to provide clean, reliable, sustainable low-cost power.

This follows a publication on a local news outlet that said the State is yet to open talks for a review of power purchase agreements, signaling further delay of the promised electricity bill cut for homes and businesses.

President Uhuru Kenyatta during the last Jamhuri Day celebrations directed a tariff review to cut power prices.

The reduction was expected to see consumers get a 15 per cent drop in the cost of power by January this year and another 15 per cent in March, bringing the total drop in power bills to 30 per cent.

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