The monopoly of Kenya Power in the country’s fledgling energy industry will soon be broken if a proposed bill is debated, ratified and implemented to pave way for competition in the sector.
The amended Energy Bill 2017 proposes the licensing of other electricity distributors and retailers outside Kenya Power’s far too long iron grip.
Energy stakeholders have since shown support to the proposed amendments that will realize Kenyans enjoy affordable electricity- But this could take far longer than anticipated, authorities warn.
But it seems authorities are also supporting the giant company, devising plans to see it ready for a possible competition with fewer implications on its balance sheets.
Energy Principal Secretary Joseph Njoroge said the power retail market cannot be opened up — at least not in the next five years — for lack of a framework and an underdeveloped transmission network.
“We must regulate the retail market and protect Kenya Power,” said Mr Njoroge, adding that market liberalisation is only feasible upon the expiry of Kenya Power’s long-term contractual agreements with producers.
Electricity competition will force the government-owned power distributor to pay hefty fines to producers such as KenGen for power not used as its demand base narrows with the expected shifting of homes and businesses to other service providers.
Amendment was always on the table to give the country an alternative electricity provider but it seems red tapes and hypocritical government supported bottlenecks slows down the process.
Kenya power’s expensive tariffs to both domestic and business markets has been an economic eyesore for decades making many Kenyans to load the dice in life.
The bill, which was tabled in Parliament aims to create room for new players in a critical sector that has only known one player since colonial times.
