New bill seeks to disclose owners of independent power production firms
The new law, proposed by Nairobi Senator Edwin Sifuna, is a response to growing concerns over the high cost of electricity.
The Senate has taken a significant step toward reducing the cost of electricity by introducing a law that requires Kenya Power to publicly disclose the owners of independent power producers (IPPs).
The Energy (Amendment) Bill, 2023, which passed its Senate reading, now awaits approval from the National Assembly.
If passed, the Bill would require Kenya Power to publish a register of the entities it has energy purchase agreements with, along with their beneficial ownership.
The new law, proposed by Nairobi Senator Edwin Sifuna, is a response to growing concerns over the high cost of electricity.
The country has long struggled with expensive Power Purchase Agreements (PPAs) with IPPs, which have been blamed for the rising electricity bills.
Under the proposed law, Kenya Power would be obligated to provide details of IPP owners on its website and in its annual audit reports.
Kenya Power currently pays a significant sum to IPPs, which supply a mix of wind, geothermal, and thermal power.
Although KenGen, the state-owned producer, supplies the majority of Kenya’s electricity, IPPs receive a larger payment for the energy they provide.
In the year ending in June, Kenya Power paid IPPs Sh18.3 billion for their electricity, compared to just Sh5.2 billion for KenGen's supply.
This law is seen as a step towards greater transparency in the energy sector, with MPs and senators aiming to identify and hold accountable the individuals behind the IPPs that contribute to the high costs of power.