President Uhuru Orders for Electricity Cost Reduction Starting January
The cost of power is expected to drop by 33 percent starting next year as Kenya plans to do away with expensive Independent Power Producers.
Gathogo Wanjiru 
President Uhuru Kenyatta announced this on Wednesday after receiving a report on a task force that has been reviewing Power Purchase Agreements between Kenya Power and Independent Power Producers (IPPs) formed late March.
According to the President, cutting of expensive power producers will see a unit of electricity go for Sh16 starting December 31 from Sh24 which is two-thirds of the current tariff.
As a consequence, a consumer spending Sh500 per month on electricity will pay Sh330, saving Sh170.
Other recommendations by the task force include review and renegotiations with Independent Power Producers (IPPs) to secure immediate reduction in Power Purchase Agreements (PPA) tariffs within existing contractual arrangements.
Cancellation with immediate effect of all unconcluded negotiations of Power Purchase Agreements and ensure future PPAs are aligned to the Least Cost Power Development Plan (LCPDP).
The task force recommended the fast-tracking and deepening of the ongoing reforms at KPLC to restructure it into a commercial entity that is both profitable and also capable of delivering efficient and cost-effective electricity supply to all consumers.
KPLC was recommended to institute Due Diligence and Contract Management frameworks for PPA procurement and monitoring along the lines of the drafts provided by the Taskforce.
