Editor's Review

One notable proposal targets power producers who have been selling power to the utility firm in dollars.

The National Assembly Departmental Committee on Energy has tabled a raft of proposals in Parliament following its inquiry on how to reduce electricity costs for Kenyans.

As detailed in the order paper dated Tuesday, December 3, the chairperson of the committee will move a motion to enforce the adoption of changes at various institutions such as Kenya Power and the Energy and Petroleum Regulatory Authority (EPRA).

One notable change being proposed for Kenya Power is the purchase of power from independent power producers in Kenya shillings as opposed to foreign currencies.

This move is targeted at power producers who have been selling power to Kenya Power in dollars. Therefore, with the fluctuation of the currency, Kenyans tend to suffer when the dollar gains against the shilling.

File image of MPs during a past sitting.

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"The House should adopt the condition that all new power generation plant Power Purchase Agreements (PPAs) be onboarded to the grid are denominated in Kenyan shillings," read the statement in part.

"The Committee shall initiate an amendment to the Energy, Act CAP 314 to effect this recommendation."

Equally, the Committee is pushing for the government to ensure that the purchase of power from independent power producers is competitive, a move that will allow producers who offer cheaper offers selected.

The Committee is also pushing for the government to reveal the names, directors and beneficiaries of the independent power producers.

"Within six (6) months of the adoption of this report, the Business Registration Services (BRS) should submit to the National Assembly a report containing a list of the owners, beneficial owners, shareholders and directors of each entity operating as an independent power producer in Kenya in accordance with section 93A of the Company Act, 2015."

"Subsequently, all new power purchase agreements will only be entered into with a power generation entity that has fully disclosed and registered full beneficial ownership in compliance with the Act," read the order paper.

MPs are set to make a determination on the motion during the Tuesday afternoon sitting.