Power to cost Sh9 per kilowatt-hour, Energy CS says in move to lower production costs
NAIROBI, Kenya, 18 May – Energy Cabinet Secretary Charles Keter has today announced a reduction of power tariffs to Sh9 per kilowatt-hour from Sh12 to boost the manufacturing sector.
Mr Keter said the Government has also taken a decision not to licence any thermal power plant or renew the licence of stations whose contracts are coming to an end in a more to sustain the low electricity tariffs.
The Energy Cabinet Secretary was speaking today during a private sector-government manufacturing meeting chaired President Uhuru Kenyatta at State House, Nairobi.
The meeting was a follow to the 8th Presidential Round Table Forum that brought together stakeholders from government and the Private Sector Alliance (KEPSA).
To plug the gap that will be left by the thermal power producers who are existing the scene, Mr Keter said 310 MW from Turkana Wind plant, 400 MW of hydro power from Ethiopia and 55 MW from Garissa solar plant will be put on the national grid.
“All that will displace the thermal power plant because there is no need to say we are giving you power at 9 cents but that power does not last,” Mr Keter said.
Industrialization, Trade and Enterprise Development Cabinet Secretary Adan Mohamed said the Government has released Kshs 1 billion to pay maize millers owed for supplies in 2017.
In his presentation, the Industrialization Cabinet Secretary disclosed that the pending Kshs 2.8 billion owed to the millers will be paid in June.
He said President Kenyatta will also gazette Presidential Investment Council by June. The Council will have policy role in growing the manufacturing sector.