Gov’t assures of vibrant Kenya Power Company

The Government has assured Kenyans of a vibrant and profitable Kenya Power Company (KP) once the turnaround strategy that is already bearing fruits is complete as company registered Sh8.2 billion profit.

Energy Cabinet Secretary (CS), Amb Monica Juma, said that restructuring processes is well on course to ensure efficiency at KP which will in return bring down the cost of electricity.

The CS said that reforms at KP are not just any other reforms since they are treating it as a special national project and they have a Cabinet Subcommittee that is engaged on the matter on a daily basis and the statement and actions by the President on the matter are very clear.

The CS, speaking, at a Nairobi hotel during a KP investors briefing, called on all Independent Power Producers to be part of the reform strategy and to embrace negotiation so that they can engage and come up with a win-win solution that secures a sustainable energy sector in the Republic of Kenya.

 

Amb Juma said that the ongoing reforms started with a sharp focus on the KP and its entire management structure and the appointment of the new Board.

“To augment and fast-track that process in a structured manner, the President appointed a taskforce to look into the critical components in the value chain, key among them the Power Purchasing Agreements and the Taskforce, has produced a report with several recommendations to improve efficiency and profitability of KP,” said Amb Juma.

She added that the reforms begun even before the Taskforce Report and the return to profitability, is testament that the reforms are working, adding that they are scaling the reforms across the entire sector in order to secure the economy by ensuring the provision of affordable and reliable electricity.

Amb Juma said that the Taskforce recommendations pertaining to the renegotiation of Power Purchasing Agreements is aimed at improving efficiency and effectiveness of each of the sector players with the objective of lowering the cost of energy.